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Apr 21, 2022
by Jafrin Ahmed
Algorand Wants to Convert Its Transaction Fees Into Carbon Offsets
Proof-of-stake blockchain platform Algorand will implement a new smart contract that will take a portion of each transaction fee within the network and automatically process it to purchase verified carbon credits at ClimateTrade, a blockchain-based carbon offset marketplace.
According to Algorand Foundation CEO Staci Warden, the move will allow the platform to scale while still being carbon negative and ensure that the blockchain remains eco-friendly in the long term.
She also hopes that other firms do the same, and at the same time, praised the industry’s efforts to be more eco-friendly.
“The industry is moving in the right direction by adopting proof-of-stake as the preferred consensus mechanism. While there are certainly valid criticisms against Bitcoin and proof of work, the future is bright.”
Earlier last year, Algorand made a pledge to be a carbon-negative blockchain. Through its partnership with ClimateTrade, Algorand was able to log its on-chain carbon footprint and put an equal amount of carbon credits in a green treasury.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.