AREC Climate Actors
There are two breeds of distinguished climate actors within the Arkreen ecosystem: renewable energy generators and climate actors.
Renewable energy generators contribute to Arkreen community by generating renewable energy and providing the RE generation proof to Arkreen Network. They are able to benefit from this so-called mining process in two ways: getting AKRE reward from Arkreen Network, and minting AREC NFT based on the RE generation data. AKRE and AREC are both valuable crypto assets.
Hereafter, We will illustrate step by step, as a renewable energy generator, how to issue an AREC NFT, sell the AREC NFT or liquidize the AREC NFT into ART (an ERC20 compliant token), and sell the ART within the Arkreen DEX. RE generators are actually the most important climate actors within Arkreen ecosystem, even though they might not directly redeem some AREC assets.
We will also demonstrate, as a climate actor, how to buy the AREC NFT and/or the ART tokens to offset the carbon footprint and commit climate actions, and how to mint the carbon retirement badge based on those climate actions.
Please refer to Arkreen Ecosystem Assets for the meaning of the assets mentioned here.
Renewable Energy Generators
To be a renewable energy generator, you need to purchase one or more Arkreen miners. There are two kinds of Arkreen miners, remote and standard. The miners continue to generate renewable energy (RE) and send the RE generating data (RE proof) to the Arkreen Network. Based on the RE generation proof, some AKRE tokens will be rewarded to the miner's owner as an incentive according to the Proof of Green-energy Generation Algorithm.
Arkreen miners need to go through four steps to participate in the mining process to gain mining rewards.
Mining with solar panel
Arkreen miners need to order one or more remote miners or standard miners from Arkreen Website to participate in Arkreen mining. A remote miner is onboarded at the same time when it is ordered, whereas, a standard miner needs to be onboarded by the owner according to the onboarding process. Once the miner is onboarded, a miner NFT is minted to the owner's account, and the miner starts to generate renewable energy and renewable energy proof, continuously.
Mint AREC
Once enough renewable energy is generated, the miner's owner could request to issue an AREC NFT based on the RE generation proof. The AREC NFT is minted on the blockchain, and the owner needs to pay some AKRE tokens (equivalent to 10% of the value of the minted AREC). The RE proof is valid only once while minting AREC, and cannot be used to issue AREC anymore once it is consumed. IPFS storage is used to store the RE data that is consumed to issue AREC.
Sell AREC or Liquidize AREC
AREC is the digital asset with value, though sometimes its price fluctuates up and down in the open market. The owner could hold the AREC to expect a price increase, and could also sell it to some other individuals or institutions that need to offset their carbon footprint.
An AREC NFT can only be transferred or sold as a whole, its liquidity is not as good as that of ERC20 tokens. An AREC holder can choose to liquidize the AREC NFT to mint ART, an ERC20 token representing the renewable energy. Once an AREC NFT is liquidized to ART, it will be locked, and the ART tokens that are exactly equivalent to the amount of RE conveyed in the AREC NFT, are minted to the NFT owner.
Sell ART in DEX
Same as any ERC20 token, ART can be added to the liquidity pool of Arkreen's DEX to generate profit for the owner as a market maker. Also, ART can be swapped to other tokens whenever necessary.
Currently, two liquidity pools, ART/MATIC and ART/USDC, are created by the Arkreen Foundation. The ART holders could swap ART for MATIC and USDC directly, or swap ART for any other tokens via the multihop swapping path.
Climate Actors
Climate actors are the individuals and entities that purchase AREC and/or ART, and redeem the AREC or offset the ART to create climate actions. Based on climate actions, the actors are free to mint a retirement badge which is a nontransferable SBT, a special kind of NFT that is bound to the owner's wallet.
Within this Arkreen retirement badge, all climate actions and the respective amount of retired renewable energy are stored, and all the information is accountable and traceable to the original renewable energy generation proof. This Arkreen badge could be provided as a certificate demonstrating carbon footprint offset actions.
To offset the carbon footprint, the climate actors need to undergo 4 step-process detailed in this following diagram.
Prepare some tokens
The two aforementioned liquidity pools, namely ART/MATIC and ART/USDC, are created by the Arkreen Foundation, hence some MATIC or USDC needs to be stored in the actor's wallet to purchase the ART and/or AREC.
Buy ART or AREC
It is easy to buy ART with the selected tokens in the Arkreen DEX. Please refer to Swap in DEX.
Also, climate actors can purchase the desired AREC within a third party NFT open market, for example, OpenSea. In this case, the platform native token needs to be paid, which may be MATIC or ETH.
Commit climate actions
There are two ways to commit the climate actions: burning ART and redeeming AREC.
While the ART tokens are burned, a climate action record will be engraved in the Arkreen badge smart contract. Within this action record, pertinent details are stored, such as which entity commits the action, when and how many ART tokens are burned.
The climate actor can also redeem the AREC NFT by sending it to the Arkreen badge smart contract. In this case, this AREC will be retired forever, and a climate action record is created for the climate actor, which stores similar pertinent information.
Mint retirement badge
At any time, climate actors can freely mint the retirement badge based on the created climate action records. Some information as the retirement entity, retirement beneficiary, and supplementary retirement remarks, can be recorded in the retirement badge. With this badge, any climate actor could demonstrate their accomplishment in protecting our Earth to any third-party climate cooperatives or regulatory agencies.