Algorand Will Convert Network Transaction Fees Into Carbon Offsets

Algorand will convert network transaction fees into carbon offsets and will allocate a part of the blockchain transaction fees to buy carbon credit at the carbon market ClimateTrade as we are reading more today in our latest blockchain news.

The proof of stake blockchain protocol Algorand will convert network transaction fees into carbon offsets and revealed that its new smart contract will take a chunk of each transaction fee on the blockchain network and will process it to buy verified carbon credits at CliamteTrade which is a blockchain-based carbon offset marketplace. According to Algorand Foundation the CEO Staci Warden, the move will allow the network to scale while still being carbon negative and Warren said that the smart contract will ensure that their blockchain remained eco-friendly in the long term and aims for other companies to do the same. Warden said:

“We hope this encourages our partners and other blockchain protocols to lower their carbon footprint.”

She explained that the tech companies have a responsibility to help build a sustainable future and the team is happy that they were able to provide a blueprint on how this can be achieved. The CEO also praised the blockchain industry’s efforts to be even more 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.”

Back in 2021, the team of Algorand made a pledge to be carbon negative blockchain, and via its partnership with climateTrade, Algorand is able to log the on-chain carbon footprint and put an equal amount of carbon credit in a green treasury. In the meantime, in an attempt to combat the effects of climate change, Lemonade insurance company partnered with blockchain companies to form ad decentralized autonomous organization which aims to help African farmers with the climate change efforts. The DAO is dubbed the Lemonde Crypto Climate Coalition and provides climate insurance to farms by allowing them to be compensated if they get affected by natural disasters.

As recently reported, Air Europa released its first NFT ticket series on Algorand after a collaboration between the Spanish company and the blockchain firm TravelX. TravelX explained that the tickets work like traditional non-fungible tokens and when traded, the transactions are recorded ont the blockchain so the holders can present the collectibles and will receive a matching flight ticket.