Ecofrontiers: Cardano Research & Advocacy Program for Natural Capital Tokenization

[GENERAL] Name and surname of main applicant

Louise Borreani

[GENERAL] Email address of main applicant

louise@curvelabs.eu

Additional applicants

Pat Rawson

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

Project will be fully open source.

[METADATA] Category of proposal

RealFi

[METADATA] SDG rating

SDG Goals:

7 - Ensure access to affordable, reliable, sustainable and modern energy for all

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

10 - Reduce inequality within and among countries

12 - Ensure sustainable consumption and production patterns

13 - Take urgent action to combat climate change and its impacts

14 - Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15 - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

SDG Subgoals:

10.5 - Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations

10.6 - Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions

12.2 - By 2030, achieve the sustainable management and efficient use of natural resources

12.a - Support developing countries to strengthen their scientific and technological capacity to move towards more sustainable patterns of consumption and production

13.2 - Integrate climate change measures into national policies, strategies and planning

14.7 - By 2030, increase the economic benefits to small island developing States and least developed countries from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism

14.b - Provide access for small-scale artisanal fishers to marine resources and markets

15.1 - By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements

15.4 - By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order to enhance their capacity to provide benefits that are essential for sustainable development

15.6 - Promote fair and equitable sharing of the benefits arising from the utilization of genetic resources and promote appropriate access to such resources, as internationally agreed

15.9 - By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies and accounts

15.a - Mobilize and significantly increase financial resources from all sources to conserve and sustainably use biodiversity and ecosystems

15.b - Mobilize significant resources from all sources and at all levels to finance sustainable forest management and provide adequate incentives to developing countries to advance such management, including for conservation and reforestation

15.c - Enhance global support for efforts to combat poaching and trafficking of protected species, including by increasing the capacity of local communities to pursue sustainable livelihood opportunities

7.b - By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States and landlocked developing countries, in accordance with their respective programmes of support

8.1 - Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

8.4 - Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10‑Year Framework of Programmes on Sustainable Consumption and Production, with developed countries taking the lead

9.1 - Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all

9.3 - Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets

9.4 - By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

9.a - Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States

9.b - Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

9.c - Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020

Key Performance Indicator (KPI):

15.a.1 - (a) Official development assistance on conservation and sustainable use of biodiversity; and (b) revenue generated and finance mobilized from biodiversity-relevant economic instruments

[IMPACT] Please describe your proposed solution.

The current natural capital asset market is centralized, unethical, ineffective, obscure, and therefore fails to account for the real value of Nature. We at Ecofrontiers think that there are multiple threads as part of this issue:

1. Lack of guidance in the policy sector: policy-makers need clear signals about Web3 environmental possibilities. The current negative press feeds political scapegoating of Web3.
2. There is a green funding gap: without substantial public and private investment, we won’t be able to protect the biosphere. In the State of Finance for Nature 2022 report, the United Nations Environment Programme estimated that the world spends US$154 billion per year on nature-based solutions: this is less than half the predicted funding needed in 2025 and one-third of the 2030 requirement. Most of this funding is wasted, going to green assets that fail-by-design.
3. Projects in the environmental sector evaluating Web3 are overwhelmed by its myriad technical, social, and economic dimensions. They don’t know where to start and this overall slows the urgent ecological transition.

The solution we propose is in continuation of Cardano's RealFi movement. We believe in the fact that “RealFi's mission is the creation of real financial value for real people, and the key differentiator between Cardano and other blockchain platforms.” Cardano's growing presence in the African markets is an unique opportunity to promote sustainable natural capital monetization in a region rich in ecological assets. People in the Global South need effective natural capital production mechanisms to leverage the value of their already-existing assets; to this end our campaign aligns with Cardano's mission to create and scale a sustainable and equitable future as well as its target constituency. 

We seek to integrate the real value of Nature into economic systems through three strategic verticals:

1) Research: We are conducting in-depth and rigorous research on natural capital asset policy, production, and finance. The aim is to present the critical role that Web3 technologies have to play in creating sustainable and efficient markets, with a distinctly architectural lens.

Because there lately has been an abundance of research attention on green finance, but a lack of awareness and education, we at Ecofrontiers aim to go beyond research with two additional verticals:

2) Advocacy: We aim to influence policy-makers and industry practitioners to promote the adoption of ethical and efficient frameworks for natural capital monetization. Unlike many Web3 initiatives, our project leverages traditional channels and methods, such as print campaigns, face-to-face lobbying, and higher academia, in order to get the message across.

3) Education: Our work raises awareness and understanding of decentralized approaches to environmental economics and eco-capitalism among stakeholders in the public and private sectors.

To demonstrate impact, Ecofrontiers is setting the following ambitious targets for the next five years to come:

1. Convince change-makers of the urgency to transition green assets on-chain. Ecofrontiers aims to build relationships and clearly inform a maximum of influential policy-makers about the potential of on-chain green assets.
2. Redirect private and public funding to the most pressing and influential on-chain green assets. As an example, consider the €2.4 billions of the EU Modernization Fund: only 0.05% of it redirected towards Web3 green assets represents an investment over two times superior to the current market cap of the Toucan Protocol.
3. Guide a new generation of environmental projects into Web3’s radical potential. Ecofrontiers’ work aims to significantly increase the number of green projects transitioning their assets on-chain by at least 2%.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Benefits to the Cardano ecosystem include:

1) Market Expansion: As recently stated by Union Square Ventures: “there is untapped potential in representing natural resources as tokenized assets.” Natural capital tokenization has the most promise in emerging economies, where Cardano aims to make a significant impact. As an example, our project will help unlock the potential for production of natural capital assets in Cardano’s target jurisdictions such as Africa, ultimately accruing TVL to the Cardano ecosystem and positioning it as a leader in sustainable finance in the region.

2) Solidifying an expert position in RealFi: By promoting best practices in the monetization of natural capital, our solution aligns with Cardano's mission to promote sustainability. By supporting Ecofrontiers, Cardano gets a chance to sponsor the first-ever rigorous research and advocacy work on natural asset tokenization. This positions Cardano’s brand as a forerunner in a field still relatively overlooked by the industry.

3) Increased Adoption: Our project will engage users, stakeholders, investors, and policy-makers interested in effective environmental finance and natural capital monetization. This has the potential to increase the ‘green’ network effect for Cardano’s community, and foster the creation and / or migration of RealFi projects on Cardano. 

[IMPACT] How do you intend to measure the success of your project?

1) Influence:

a) Number of individual change-makers, governments, and organizations who are positively affected by our research and advocacy efforts. This qualitative parameter will be measured according to impact: positive acknowledgement of the influence of our work in a private email weighing less than the development of concrete policy changes, adoption of best practices, or the publication of an article identifying Cardano as a key backer of the research and supporter of the emergence of Web3 natural capital markets.

b) Number of views and downloads of the policy report — published on Ecofrontiers’ notion..

c) Twitter and LinkedIn organic post, likes, and comments engagement relating to the campaign.

2) Investment in natural capital assets:

a) Amount of public or private investments related to natural capital tokenization in and outside of Web3 six months after the publication of the campaign’s report.

3) Ecosystem Growth:

a) Number of RealFi projects deployed on Cardano six months after the campaign publication, compared to existing.

b) Increase in the market cap & number of users of Cardano’s top RealFi projects six months after the publication of the report.

[IMPACT] Please describe your plans to share the outputs and results of your project?

1) Publication of a Policy Report: We will produce a detailed policy report that explores the concept of natural capital asset production, and the role that Web3 technologies has to play in it, by outlining a “Environmental Finance Stack” — i.e. the layering of different material or conceptual layers whose systemic action produce an exchangeable natural capital asset. We plan to share this report widely through various channels. Please find the intended outline of this first report below:

(Part 1) Evolving Eco-capitalism: An Iterative Development

1.1) Eco-capitalism 1.0

This section introduces and criticizes the inefficient way natural capital assets are produced. It describes the poor execution and negative material impact of current natural capital commodification efforts, as well as the existing supply glut.

1.2) Eco-capitalism 2.0

The introduction of Web3 technologies shift natural asset production towards efficiency by providing improved tooling for the commodification of Nature as well as a greater variety of assets.

(Part 2) Web3's Environmental Finance Stack

2.1) The Underlying Material Reality: Ecosystems for Abstraction

This section describes the underlying material reality that can be commodified as natural capital. In it, we evaluate frameworks that effectively abstract Nature.

2.2) Data Layer: Technical Architectures for Data Storage, Availability, and Execution

A technical introduction to the data infrastructure converting the analog material reality into digital form. In this section, a detailed comparative analysis is presented of emerging Web3 primitives in the context of natural capital, such as blockchains, rollups, oracles, decentralized data storage and computation.

2.3) Institutional Layer: Data Verification, Legitimization, and Governance

The institutionalization process ultimately legitimizes the type and quality of natural capital. Through their decision-making, institutions filter and utilize the environmental data layer to define protocol rules around natural asset production. Several comparative taxonomies inform about existing institutions in Eco-capitalism 1.0 and 2.0, as well as their respective structures.

2.4) Protocol Layer: How Institutions Fractionalize Nature

This section introduces the protocol layer as a definition for the production of an asset governed by an institution. Learn about the primitives for transformation in Eco-capitalism 1.0 and 2.0, and the different types of asset transformations that are facilitated by such protocols, such as the creation of fungible environmental assets from non-fungible data collections.

2.5) Asset Layer: The Market Objects of Protocols

This section discusses the natural assets produced from the systemic combination of the previous layers. It contains a complete taxonomy of over 15 green assets, analyzed through the lens of diverse relevant parameters, such as their regulatory MiCA class.

2.6) Market Layer: Asset Exchange Dynamics and Impact

This final layer represents the conditions of exchange of the natural asset wherein price discovery occurs. It provides a smart comparison of market structures, needs, and life cycles between Eco-capitalism 1.0 & 2.0.

(Part 3) Future Trends: Eco-capital in the Long Age of Adaptation

1) Evolving Trends

This section offers a precious and up-to-date analysis of evolving trends for the production of natural capital assets.

2) Future Scenarios

This final section compares three possible scenarios relative to the adoption of a new commodification strategy for Nature.

2) Advocacy Efforts: Alongside the research report, we will engage in advocacy efforts to raise awareness about the transformative potential of Web3 technologies in natural asset production. This will involve a complete distribution strategy of the policy report involving traditional techniques such as a print campaign — at Ecofrontiers, we believe that the best way to reach traditional actors is by using their means of communication. We aim to distribute the report to:

• Environmental policy-makers such as the EU Environment Agency, the UNFCC, the spokesperson for the green new deal, through a print campaign. 
• Green asset management actors such as venture capitalists, EU funds for climate change, Web3 investors, through email and social network reach-out. 
• Academics such as environmental economists, university professors, and scholars, through email reach-outs. 

Having worked and sailed for many years in all these environments, we have a large network of connections that we are able to easily activate.

3) Knowledge Sharing Events: We plan to organize and participate in knowledge sharing events such as workshops, webinars, and Web3 renowned conferences to disseminate the project's outputs and engage with a diverse range of public and private stakeholders. These events will provide opportunities for discussions, networking, and exploring potential collaborations. Each of our public-speaking opportunities will be an occasion to give a shoutout to Cardano for supporting this initiative. 

The results generated from our project will serve as a foundation for further research and development activities. We expect to use these results to inform Ecofrontiers future studies, reports, and advocacy work.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Ecofrontiers is an initiative from Curve Labs — a Web3 innovation lab incorporated as GmbH in Berlin, Germany. As a GmbH, the lab’s directors have a fiduciary duty to manage funds correctly, as well as a duty to pay corporate tax and issue regular financial reporting. 

Having been an incorporated European enterprise for more than 3 years, Curve Labs has a track record of proper fund management and accountability, ensuring  that funds allocated to the Ecofrontiers project are utilized responsibly and in accordance with the project’s objectives.

The Ecofrontiers’ team comprises two of Curve Labs’ most experienced professionals with deep knowledge and expertise in the fields of ReFi, environmental economics, Web3 technologies, and natural capital asset markets. The Ecofrontiers team has a track record of conducting rigorous research, producing high-quality publications whose results have been cited in UN and WEF documents, and advocating for positive change in the industry. Please consult our One-Pager to see a portfolio of our past work and engagement in the field: https://www.notion.so/curvelabs/One-Pager-ReFi-Web3-Consulting-d797c4bd29824c22b5c159b4ade38510

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

Goal 1: Production & publication of a comprehensive policy report exploring the concept of natural capital asset production, the role of Web3 technologies, and the challenges faced by the current environmental asset industry.

Validation (in the next year after report publication):

• Completion and publication of the first campaign research report
• Report's quality, depth of analysis, and its relevance to the target audience will be qualitatively assessed through feedback, reviews, and the engagement it generates within the industry and academic communities.

Goal 2: To advocate for policy changes and the adoption of more ethical, diverse, and efficient frameworks and technologies in natural capital monetization.

Validation (in the next 5 years after report publication):

• Amount of public or private investments related to natural capital tokenization
• Minimum 50 individual change-makers, governments, and organizations who are positively affected by our research and advocacy efforts. This qualitative parameter will be measured according to impact: positive acknowledgement of the influence of our work in a private email weighing less than the development of concrete policy changes and adoption of best practices.

Goal 3: To educate and raise awareness of decentralized approaches to natural capital asset production and the role of Web3 technologies in the public and private sectors.

Validation (in the next 5 years after report publication):

• Above 4000 views and 1000 downloads of the policy report — published on Ecofrontiers’ website.
• Above 10 posts we didn’t authored on Twitter and LinkedIn relating to the report.
• Above 100 likes respectively on the Twitter and LinkedIn posts related to the report.
• Increase in the number of RealFi projects and tokens deployed on Cardano.
• Increase in the market and increase in the number of users of Cardano’s top RealFi projects.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1: Policy Report Preparation & Writing

• Conduct an in-depth literature review on natural capital asset production, institutional policy-making, and monetization.
• Analyze and identify key trends, challenges, and opportunities.
• Develop a framework for the policy report. Write and refine.
• Expected timeline: 3 months
• Success criteria: Completion of a well-researched and comprehensive report draft.

Milestone 2: Report Review and Refinement

• Share the draft report with domain experts, stakeholders, and the Cardano community for feedback and review. Incorporate feedback, address comments, and refine.
• Conduct additional research or analysis if necessary.
• Expected timeline: 1 month
• Success criteria: Finalized research report ready for dissemination.

Milestone 3: Report Publication and Dissemination

• Visual design and preparation for publication. Print as A4 booklet.
• Circulate across targeted channels populated by policy-makers, academics, environmental industry leaders, and natural capital investment funds. The team has access to a wide network of relevant stakeholders already gathered in a concise contact book. 
• Promote the report through broad marketing and outreach efforts, such as social media
• Expected timeline: 1 month
• Success criteria: Published report on the Ecofrontiers website, with measurable engagement metrics — i.e. downloads and views.

Milestone 4: Education and Advocacy Campaign

• Organize and participate in workshops, webinars, conferences, and other knowledge sharing events to disseminate information and engage with stakeholders.
• Expected timeline: Ongoing throughout the project duration
• Success criteria: Increased awareness, engagement, and positive feedback from the target audience.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Research Report Preparation & Writing

Deliverables:

• Comprehensive literature review on natural capital asset production in Web3 spheres.
• Collected data, case studies, and relevant information.
• Framework for the research report.
• Well-researched and comprehensive report draft.

Outputs:

• Draft of the research report.
• Detailed bibliography.
• Research report framework document.

Intended Outcomes:

• Increased understanding of natural capital asset production in and out of the Web3 context.
• Identification of key trends, challenges, and opportunities in the field.
• Creation of a solid foundation for the research report.

Milestone 2: Report Review and Refinement

Deliverables:

• Revised research report based on feedback and comments.
• Additional research or analysis if required.

Outputs:

• Finalized research report ready for publication.

Intended Outcomes:

• Improved quality and clarity of the research report.
• Incorporation of expert feedback and insights.
• Enhanced credibility and reliability of the report.

Milestone 3: Report Publication and Dissemination

Deliverables:

• Designed and visually appealing research report.
• Report shared publicly through Ecofrontiers’ website.
• Marketing campaign: announcement of report publication of Mirror articles, twitter threads, and LinkedIn posts through Curve Labs, Ecofrontiers program leads, and partners accounts.
• Print campaign: Personal distribution of the report to key individuals.
• Email and social media personal reach-out to key individuals.

Outputs:

• Published research report available to the public.
• Increased visibility and reach of the report through dissemination efforts.
• Personalized distribution to relevant stakeholders.

Intended Outcomes:

• Increased awareness and understanding of Web3 technologies in the context of natural capital asset production.
• Engagement and interest generated within the industry, academic, and governmental communities.
• Recognition of the report as a valuable resource.

Milestone 4: Education and Advocacy Campaign

Deliverables:

• Participation in workshops, webinars, podcasts, conferences, and knowledge sharing events.
• Potential collaborations and partnerships with stakeholders.
• Advocacy efforts aimed at influencing policies and industry practices.

Outputs:

• Event participation and knowledge sharing sessions.
• Potential collaborative initiatives and partnerships.
• Advocacy communications.

Intended Outcomes:

• Increased awareness and understanding of decentralized approaches to natural capital asset production.
• Adoption of more ethical and efficient frameworks and technologies that ultimately foster environmental protection and regeneration.
• Positive impact on policies and industry practices.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

The rest of the costs is covered by a Gitcoin grant we received, by other grant applications and sponsorships being approached presently, and by Curve Labs.

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

1. Research Expertise: The project brings together a team of experienced researchers, writers, and experts in the field of natural capital asset monetization and Web3 technologies. The cost reflects the value of their expertise and the depth of research that will be conducted. The team members have a track record of producing high-quality research papers, articles, and whitepapers in their respective fields, which adds credibility to the project.
2. Comprehensive Deliverables: The project deliverables include a well-researched and comprehensive research report, editorial review, translations, design work, and various campaign activities. These deliverables require specialized skills and resources to ensure their quality and effectiveness. The costs associated with these deliverables are necessary to produce a comprehensive and impactful outcome.
3. Industry and Country Standards: The costs are justified based on Germany’s standards and typical freelance rates for similar projects.

Concretely, we’ll treat Cardano as a top tier sponsor of Ecofrontiers’ work, which includes several advantages:

• Logo on the front-page of the report
• Logo and shoutout in conferences’ presentations
• Logo on Ecofrontiers’ website
• Editorial opportunity prior to publishing
• Printed and mailed copy of the report
• Mention in reach-out correspondence
• Positive shoutout from the Curve Labs socials and Ecofrontiers’ program leads’ socials
• Invitation to an Ecofrontiers meeting in Berlin (optional)
• Free advisory call with Ecofrontiers’ leads (optional)
• NFT badge redeemable for signed copy of future Ecofrontiers’ book (optional)

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept