What if we were wrong with DeFi, the famous decentralized finance? Today, we are interested in ReFi, Regenerative Finance. A version of DeFi oriented towards the common good!
DeFi vs ReFi
Before pitting DeFi against ReFi, let’s keep one thing in mind: both are similar in their construction, as they are decentralized finance systems using blockchain technology. Where DeFi and ReFi differ is that DeFi is a term that fits any purpose, while ReFi is about working for the common good. This includes social, environmental and humanitarian actions… ReFi is therefore a financial system that is ethical and sustainable.
Crypto-ethics: ReFi projects
Did you think cryptocurrencies couldn’t make the world a better place? Think again! Here is a selection of crypto projects that are making a difference to fight inequality, climate change and many other issues. Enough to restore your faith in humanity!
Launched in November 2017, Gitcoin defines itself as “a community of builders, creators and protocols at the center of open web ecosystems.” A community that focuses on the development of web3, with the objective of making it “open source, collaborative and economically empowering “. Since its inception, Gitcoin has raised more than $58 million in funding for open source projects. These include Swivel Finance and EPNS. As a community, Gitcoin helps developers learn new skills through workshops, hackathons and its Kernel program.
Gitcoin focuses its efforts on quadratic funding of open source projects in order to compensate its players and thus encourage innovation through collaboration. The collective has 311,668 active developers, proof of its dynamism! Gitcoin has its own governance token for its DAO, with the GTC crypto. The GTC was launched in May 2021 and trades at around €5.60.
Changing the way donations are made through blockchain technology is the goal of Giveth. The platform promotes altruism and decentralization, while rewarding people for donating in crypto. Donors are indeed rewarded with GIV tokens, Giveth‘s crypto, which currently trade at €025.
The GIV cryptocurrency is also the platform’s governance token, which allows people to participate in its evolution. Please note that Giveth is a community-based, non-profit organization. Two DApps are present to make crypto donations: Giveth.io and Giveth Trace. The donations made are traceable, as the project is based on the Ethereum blockchain. Don’t worry about the gas costs: they are covered by Giveth! Many verified charity projects are listed, with various fields of action: education, environmental protection, agriculture…
EthicHub is a platform to pay small agricultural producers their fair value. Three options are available:
- Buy coffee directly from small producers.
- Invest in projects with farming communities to earn interest.
- Invest in the ETHIX token, EthicHub’s cryptocurrency.
EthicHub includes a crowdlending system to finance projects such as the purchase of fertilizers or the harvesting of coffee and the drying of beans. On site, a person called The EthicHub Local Node makes sure that everything runs smoothly. The company announces a 98.8% success rate for the return on investment of the projects financed so far!
For larger donations, EthicHub has a Big Lenders program that offers investors the opportunity to earn higher interest. Currently, the Big Lenders pool represents 420,000€ for 16 investors, with an interest rate of 10%. EthicHub’s token, the ETHIX, is the governance token of the project. This cryptocurrency can be staked to collect passive crypto income, but also to offset potential default payments related to loans. The price of ETHIX is around 0€32.
Other Regenerative Finance projects
Many other ReFi projects exist, such as KlimaDAO and Toucan, which offer carbon offsets via blockchain technology or The Giving Block and Crypto For Charity, which are cryptocurrency donation platforms. We can also mention Climate Collective, which was launched in 2021 under the impulse of the Celo community, in order to fight climate change by protecting tropical forests.
If you know someone who loudly proclaims that cryptos are only for money-hungry people, tell them about these philanthropic initiatives. Owning cryptocurrencies is also an opportunity to participate in charitable projects. And it works! For example, KlimaDAO has already offset 17 million tons of carbon, EthicHub supports 21 small-scale producer communities, and The Giving Block has raised millions of dollars in crypto for charity. If the DeFi is taking a growing place in our society, the ReFi should follow the same path, facilitating actions to preserve our planet and ensuring a fairer future for its inhabitants.
- ReFi is similar to DeFi, but with an ethical scope.
- There are many ReFi projects, ranging from charities to make crypto donations to platforms offering to support various projects benefiting the common good.