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Blockchain and the Sustainability Movement

Web3 and blockchain technology have opened up unique economic opportunities, initiatives, and incentive structures in recent years. Cryptocurrency is now a global topic, enabling users to operate outside traditional economic structures. The potential of Web3 technology to transform the global economy is significant, from democratizing the global economic system to dismantling international barriers. These attributes make Web3 a powerful tool for fostering a more inclusive and equitable economic landscape. 

As capital utilization options within Web3 expand, many have naturally pondered, “How can we use the new tools afforded by blockchain and Web3 to contribute to the greater sustainability efforts worldwide?” This alternative financial system, sometimes referred to as regenerative finance (ReFi), blends decentralized finance (DeFi) with essential social and environmental objectives, presenting a promising approach to achieving sustainable development.

ReFi creates investment opportunities and mobilizes funds for projects related to sustainable agriculture, renewable energy, and societal well-being. Unlike traditional financial systems that prioritize short-term gains, ReFi emphasizes long-term value. It adheres to circular economy principles, such as reducing waste and promoting recycling, and facilitates access to global financial markets. This enables individuals to make socially conscious economic decisions that consider climate and social benefits alongside financial returns. By integrating these elements, ReFi seeks to build a robust economy that cares for nature and society.

Decentralized autonomous organizations (DAOs) further enhance ReFi by allowing stakeholders, including investors and beneficiaries, to participate in decision-making processes. For example, a DAO formed to oversee a new agricultural sustainability issue would enable token holders to discuss, decide, and vote on new initiatives. This participatory approach ensures that the community has a voice in shaping the future of sustainable finance initiatives. The ReFi ecosystem is steadily growing and is supported by promising new projects as well as more established blockchain protocols like Vechain. 

Vechain’s Sustainability Initiatives

VeChain, an early pioneer in the ReFi/sustainability movement, has taken a significant step towards sustainability by announcing a strategic partnership with global leaders, including Boston Consulting Group (BCG). This collaboration aims to drive sustainability initiatives through the development of blockchain technology, the "X-2-Earn" model, and the VeBetterDAO.

One of VeChain’s initial blockchain-based sustainability solutions targets the environmental impact of the textile industry. Despite the industry contributing 4% of global greenhouse gas emissions, only 1% of textiles are recycled. VeChain's blockchain technology aims to address this issue by promoting a circular economy through Web3. This approach encourages sustainable fashion practices and rewards eco-friendly initiatives.

Beyond land-based initiatives, VeChain's commitment to sustainability extends to ocean protection. The collaboration with ReSea, a pioneering project, envisions individuals actively participating in ocean cleanup efforts. By tagging collected plastic on the blockchain, contributors can receive monetary rewards for their environmental efforts. This collaboration highlights a dedication to securing the future of oceans by addressing critical ecological challenges and introducing incentives to mobilize individuals and communities for a healthier planet.

Furthermore, the VeBetterDAO and the "X-2-Earn" token model aim to revolutionize the incentive structure around the sustainability economy. The VeBetterDAO ecosystem introduces a novel approach to sustainability and user engagement through its X-2-Earn applications. The "X" in X-2-Earn represents the variable nature of these applications, allowing for a broad spectrum of sustainability-focused activities to be integrated into the earning mechanism. Examples include planting trees through a 'Plant-2-Earn' model or encouraging physical activity with 'Sweat-2-Earn' decentralized applications (dApps).

Integrating X-2-Earn applications into the VeBetterDAO ecosystem requires a thorough validation and qualification process. These applications leverage B3TR tokens not only as a reward mechanism to incentivize user participation but also to support a range of other objectives, such as fostering innovation among developers, driving marketing efforts, and securing sponsorships.

The distribution of B3TR rewards within these X-2-Earn dApps is determined by individual projects, with community approval playing a pivotal role in sanctioning reward proposals through voting. For an X-2-Earn application to align with the VeBetterDAO ecosystem, it must adhere to three core principles: meaningfulness, feasibility, and value creation. Each application must contribute significantly to sustainability efforts, accurately record and reward user contributions, and ensure that these contributions provide collective value towards sustainability goals.

Through these initiatives, VeChain demonstrates a comprehensive approach to sustainability, combining technological innovation with community engagement to address some of the most pressing environmental challenges of our time.

How the VeBetterDAO Works

VeChain Node holders play a crucial role in the validation and qualification process for X-2-Earn applications. These nodes act as validators, ensuring that each application meets the necessary standards before being listed on the VeBetterDAO platform. To gain approval, an application must secure a minimum rating from both Economic and X-Node holders. This engagement is facilitated through various channels, including X Spaces, community forums, and social media platforms such as Discord and Telegram. Here, projects must actively communicate and collaborate with potential stakeholders to secure weekly B3TR allocations.

The benchmark for listing a project on the VeBetterDAO platform is a qualification score of 100, determined by VeChain Nodes. This stringent requirement ensures that only applications with a solid foundation in sustainability, a viable reward mechanism, and a clear value proposition are included. This process not only democratizes the development and integration of X-2-Earn applications but also reinforces the ecosystem's commitment to fostering sustainable practices through innovative blockchain solutions.

Grant Program for X-2-Earn dApps

VeChain has launched a new grant program designed to support the development and maturation of X-2-Earn decentralized applications (dApps). The program follows a structured four-step process, providing comprehensive support to projects from initial development through to scaling and securing investment.

1. Initial Grant: Projects can receive up to $100,000 in grants focused on business and sustainability development. This initial funding is intended to help projects lay a solid foundation.
2. DAO Listing: Successful projects are then listed on VeBetterDAO, gaining access to DAO token support, as well as community and marketing assistance. This stage provides essential resources and exposure to help projects grow.
3. Professional Mentorship: In the third step, selected projects receive professional business mentorship from BCG. This guidance is crucial for the development and scaling efforts of the projects, helping them refine their strategies and operations.
4. Scaling and Investment: The final step involves securing additional investment and scaling the projects to reach a broader audience. This phase is critical for the long-term success and sustainability of the dApps.

By integrating these comprehensive steps, VeChain aims to cultivate a robust ecosystem of X-2-Earn applications that contribute to sustainability. This approach not only supports innovative blockchain solutions but also ensures that these solutions have the necessary backing to thrive in the long term. The grant program underscores VeChain's commitment to fostering sustainable practices and driving technological innovation in the blockchain space.

Mainnet Launch

The launch strategy for VeBetterDAO is meticulously structured around three pivotal phases: Pilot Show Alpha (Testnet Take-off), Pilot Show Beta (Mainnet Blitz), and the Go-Live Gala. This phased approach ensures a smooth and effective rollout, engaging the community and refining the platform based on user feedback. In a little over three months of the testnet phase, the VeBetterDAO attracted 18,000+ B3TR token holders and 4,000+ active users, culminating in more than 230,000 transactions. 

Pilot Show Alpha (Testnet Take-off)

The initial phase, Pilot Show Alpha, focused on the distribution of B3TR tokens through various methods, including airdrops and community engagement activities. This phase serves as a foundational period, enabling users to become familiar with the platform's functionalities. 

Pilot Show Beta (Mainnet Blitz)

The transition to the Mainnet, marked by the Pilot Show Beta phase, is scheduled for June 30th, 2024. This phase not only represents a significant technical milestone but also ensures continuity for users, as tokens earned during the Testnet phase will be carried over to the Mainnet. This seamless transition helps maintain user engagement and confidence in the platform's stability and reliability.

Go-Live Gala

The culmination of these phases is the Go-Live Gala, set to coincide with the anniversary of the VeChainThor mainnet on June 30th. This final phase introduces a range of new features and functionalities designed to enhance the user experience and expand the platform's capabilities. Key enhancements include token minting, advancements in NFT maturity levels, and improvements to X-2-Earn applications. These additions aim to provide users with more diverse and rewarding experiences, further driving the adoption of sustainable practices through blockchain technology.

The mainnet launch will introduce several features aimed at enhancing governance and promoting new forms of participation, including:  

• Increased Rewards: The launch will initiate the full-scale emission of B3TR tokens, marking the commencement of a 12-year tokenomic structure. Weekly allocations will start with a 2 million B3TR pool, offering increased rewards to active community members and incentivizing engagement.

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• Quadratic Funding and Voting: To ensure a fair and balanced voting environment, VeBetterDAO will implement quadratic funding and voting mechanisms. This innovative approach aims to democratize the voting process, preventing the dominance of large stakeholders and promoting equitable participation.
• Governance Proposals and Treasury Management: A new governance feature will allow users to actively participate in Treasury proposals via the VeBetterDAO governance dApp. Proposals, which can address a wide range of purposes, will help shape the future of the ecosystem. To initiate a proposal, users must secure the endorsement of at least 2% of the circulating B3TR supply. Once this threshold is met, the proposal will be posted on a dedicated forum for voting. Participants who vote on these proposals will receive additional rewards, further incentivizing active involvement. Detailed guidelines on initiating governance proposals will be released as the mainnet launch approaches.

Proposals are the foundation of the DAO's operational framework, with the community playing a crucial role in shaping the proposal pipeline. VeBetterDAO will host a dedicated forum for submitting, discussing, and voting on proposals. This forum will facilitate transparent dialogue and provide a comprehensive dashboard displaying voting outcomes, archival records, and detailed proposal analytics. Proposals must undergo a rigorous vetting process to advance to the implementation stage. This process begins with community discussions on the forum, followed by a preliminary 'temperature check,' and culminates in formal on-chain voting.

In the event of disputes arising from governance activities, resolution will be achieved through community-driven voting on pertinent proposals. To bolster the platform's security architecture, VeBetterDAO plans to appoint Security Guardians. These guardians, whose roles and powers will be more clearly defined as the platform evolves, will have the limited authority to temporarily suspend certain protocol functions or take other emergency measures to ensure system integrity. Such actions, designed to be executed swiftly without procedural delays, will be under the direct oversight of the VeBetterDAO Operator, ensuring a balanced approach to emergency intervention and system transparency.

Joining VeBetterDAO is a straightforward process designed to empower token holders to actively participate in platform governance. This inclusive system ensures all members can engage in voting events, contribute to governance discussions, and access the DAO's Treasury.

Upon its launch, VeBetterDAO will operate under predefined governance protocols for the first year. This Stabilization Period is critical for assessing the platform's operational integrity and long-term feasibility. During this time, the VeChain Foundation retains the authority to halt and resume B3TR token minting if necessary to safeguard against potential exploits. The VeChain Foundation is governed by the Steering Committee, elected every two years by the community through VeVote, a decentralized platform. This committee, composed of experts from various fields, guides the Foundation’s functional arms, balancing stakeholder interests to foster VeChainThor's growth. After this initial period, the power to continue or discontinue such safeguards will transition to the community, which will deliberate on this issue through bi-annual voting events.

VeBetterDAO Tokens and Incentive Structure

The VeBetterDAO ecosystem operates on collective empowerment principles, aiming to democratize sustainability efforts across enterprises and non-governmental organizations (NGOs). By encouraging widespread participation and rewarding sustainable actions, VeBetterDAO stands out amongst traditional DAOs for its innovative mission as well as its token distribution mechanism. VeBetterDAO’s commitment to decentralization is evident in its adherence to the "fair launch principle." Unlike many projects that preallocate tokens to insiders, conduct private sales or reserve allocations for the team, VeBetterDAO distributed its tokens without such preallocations. This approach underscores the project's dedication to fairness and community empowerment.

Finally, the entire VeBetterDAO is driven by a dual token model consisting of the B3TR and VOT3 tokens. These tokens are intricately designed to fulfill distinct but interrelated roles within the ecosystem, enhancing both governance and user engagement.

• B3TR Token: B3TR serves as the main reward and incentive token within VeBetterDAO. It motivates users to engage in activities that promote social, environmental, and economic sustainability. Participants earn B3TR by contributing to platform governance, reflecting the "Engage-2-Earn" model that encourages active involvement. B3TR holders can enhance their rewards by upgrading their Galaxy Member NFT, providing additional incentives for continued engagement. 

Furthermore, B3TR tokens can be converted into VOT3 tokens on a 1:1 basis, which is essential for participating in VeBetterDAO’s governance activities. VOT3 tokens empower users to allocate resources to preferred decentralized applications (dApps), influence treasury proposals, and engage in community-driven governance decisions, embodying the ethos of people-powered governance.

• VOT3 Token: VOT3 tokens are pivotal for governance activities. B3TR holders can convert their tokens into VOT3, enabling them to participate in decision-making processes such as allocating resources to preferred decentralized applications (dApps) and influencing treasury proposals. This system embodies the principles of people-powered governance, ensuring that control remains in the hands of the community.

VOT3 offers a distinctive feature with its 1:1 exchangeability with B3TR via a specialized swap pool engineered to deter any manipulation. Users can stake B3TR/VOT3 tokens to support their preferred dApps, facilitating project funding while earning yields for their participation. This system aligns financial incentives to minimize conflicts and misalignments commonly seen in decentralized governance, thereby fostering greater voter engagement, an area where many DAOs struggle.

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VeBetter DAO Apps

Mugshot and Non-Fungible Book Club

MugShot, a revolutionary decentralized application (DApp) transforming how coffee enthusiasts embrace sustainability, is one of VeBetterDAO’s earliest supported projects. By snapping a picture of your coffee routine, users join a dynamic community dedicated to eco-friendly practices. MugShot rewards users for using reusable mugs, promoting sustainability by demonstrating how small actions, when multiplied, can have a significant impact. The idea was born because, in the United States, 25 billion plastic cups are discarded annually, contributing substantially to environmental degradation. MugShot highlights the collective power of individual actions, emphasizing that even small sustainable choices can make a difference on a large scale. 

On VeChain, even minor decisions, such as opting to stream an audiobook instead of buying a paperback, are incentivized through the Non-Fungible Book Club, which rewards users for choosing more sustainable options. Staying informed about sustainability is crucial, and VeChain’s Green Ambassador Challenge serves as a comprehensive resource, offering knowledge and rewards for those committed to preserving the environment for future generations.

Cleanify

Cleanify is a participating decentralized application (dApp) that incentivizes users to clean their local surroundings through simple actions like placing trash in bins or picking up litter. Despite its recent launch, Cleanify has recorded nearly 3,000 daily actions from users, rewarding them with B3TR, the native token of the VeBetterDAO platform. Besides daily actions, users can earn B3TR by organizing group campaigns, which are accessible through the Cleanify app and website, allowing community members to join. The platform offers up to 1,000 B3TR tokens to be shared among participants in these campaigns, which have already commenced in Sweden, the Netherlands, Germany, and the UK.

Green Cart

Introducing GreenCart, a new decentralized application (dApp) that transforms grocery shopping into a sustainable and rewarding experience. GreenCart encourages users to turn their grocery receipts into rewards by earning B3TR tokens for every eco-friendly purchase and decision, such as using the self-checkout lane. By scanning and uploading their receipts, users can earn B3TR tokens as a rebate for choosing sustainable products. This initiative aims to promote sustainability by making environmentally conscious shopping more appealing, especially as organic items often come at a higher cost. GreenCart, part of the VeBetterDAO ecosystem, supports users in building a greener future while recognizing their commitment to the planet.

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EVearn

The latest dApp to join VeChain’s sustainability-focused ecosystem is VEVearn, which rewards Electric Vehicle (EV) usage with B3TR tokens. Currently, in phase one, VEVearn is asking the VeChain community to use their VOT3 tokens to allocate rewards to the EVearn dApp in the current VeBetterDAO voting round. When launched, Tesla drivers will be able to earn rewards by driving their cars.

The EVearn dApp allows users to connect their digital wallets to their electric vehicles using the vehicle’s VIN number and record data such as charge levels. After charging, users upload a photo of the updated info. That data is then verified, and users are rewarded with digital tokens. This app can introduce millions of people to the everyday benefits of blockchain beyond the traditional Web3 community.

An EV driving between 15,000 and 20,000 miles per year can generate approximately 1 to 1.5 tons of carbon emission reductions (CER), equating to a value of around $50. Scaling this impact, if 100 million EVs were in use, they could collectively generate a value of $5 billion in carbon emission reductions, illustrating the substantial economic and environmental benefits of widespread EV adoption.

EVearn was born out of the successful partnership between VeChain and BYD, a Chinese vehicle manufacturer and the world’s largest seller of plug-in electric cars. That partnership showed how blockchain could create new value by rewarding green behavior. BYD EV owners could earn carbon tokens by driving, which could be exchanged for insurance discounts and food vouchers. 

Conclusion

The intersection of blockchain technology and sustainability, as exemplified by initiatives like VeChain's VeBetterDAO, marks a pivotal evolution in how we address environmental and social challenges. By leveraging decentralized finance and innovative incentive structures such as the "X-2-Earn" model, VeChain not only promotes sustainable practices but also empowers communities to actively participate in shaping a greener future. The comprehensive approach of combining technological innovation with community engagement ensures that the efforts are inclusive, equitable, and impactful.

As the VeBetterDAO ecosystem continues to grow, it demonstrates the transformative potential of blockchain in fostering a regenerative financial system. The rigorous validation process for X-2-Earn applications, coupled with the strategic partnership with industry leaders like BCG, underscores a commitment to sustainability and long-term value creation. Through initiatives like the Cleanify app and the GreenCart dApp, VeChain showcases how everyday actions can be incentivized to drive meaningful change. As we look to the future, the success of VeChain's sustainability efforts offers a blueprint for how blockchain technology can be harnessed to build a more sustainable and resilient world.

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Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.

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