Can GameFi and Carbon Currency Overturn Blockchain’s Climate Stigma?


Nonfungible Tokens (NFTs) and blockchain technology have been stigmatized as bad for the environment in some sections of the community. But could incorporating carbon offsets into NFT games change this perception?

GameFi, or game finance, combines NFT and gaming. Blockchain games account for nearly $12 million in daily trading volume of over one million gamers. according to App Tracker DappRadar. Toucan Protocol COO Rob Schmitt believes that by leveraging volumes and their users, they can benefit the environment.

Schmitt told Cointelegraph that using carbon offsets as an element of a blockchain game could create “the most earth-friendly system we’ve ever seen.” He envisions a GameFi space that uses carbon offsets as in-game currency and urges game creators to get creative.

“Games don’t have to have a whole economy based on offsets, but they have to be included in a reasonable way,” he said. Schmitt said there are already teams of game creators working with Toucan to put carbon offsets into work, like Atlantis World.

“The ‘blockchain is killing the world’ story is a reversible argument with carbon offsetting.”

The Toucan protocol tokenizes certified carbon offsets on the Polygon (MATIC) network into Base Carbon Tonnes (BCT).

The demand for eco-friendliness of game companies is increasing with games. studio Space Ape Games, which publishes Fastlane, achieved carbon neutrality in 2019. Green Geeks reported the game. publisher SuperCell, Rovio and Sybo are offsetting the company’s carbon footprint.

The perception that blockchain technology is bad for the environment is often spread in the traditional gaming industry. Major online gaming outlet Steam banned all games containing NFTs or cryptocurrencies last October. In February, game provider Iitch.io announced that Tweet The phrase “NFT is a scam” means nothing other than “destroy the planet”.

These negative perceptions indicate a lack of awareness of the carbon emissions associated with the different consensus mechanisms. The Polygon network and other NFTs and game-centric chains use a Proof-of-Stake (PoS) consensus algorithm, which greatly limits power consumption and environmental impact.

Cointelegraph reported in April that the Polygon team is aiming to make the network carbon neutral this year. Other blockchain networks that support NFT gaming and feature a negligible or neutral carbon footprint include Wax (WAX), Solana (SOL), and BNB Chain (BNB). Ethereum (ETH) is expected to transition to PoS in the coming months, with the most recent estimate of a merger in August.

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Ubiquitous climate awareness is a lofty goal, but Schmitt admits that “not everything has to be climate action.” Also, gamers don’t need to be aware that the games they enjoy can be carbon neutral. Because he doesn’t do much to make it work. Schmidt said:

“Most of the games don’t have anything to do with climate action, but there are only a handful of games that require a lot of good deeds.”

He says climate activism doesn’t need to be a major focus for game developers, especially if you’re already deploying work on a climate-friendly blockchain.

“Developers need to focus on making games that are fun first, and carbon offset integration allows them to attract new audiences.”

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