Curious about Regenerative Finance (or #ReFi)?
Here's a quick 𧡠to help you understand this alternative economic system better.
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Regenerative Finance (or #ReFi) is the idea and a novel term for an inclusive financial system that values re-distributing resources for the benefit of communities, ecosystems, and the environment π΄ π₯ π
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Why should you care about ReFi?
ReFi is an exciting & welcoming space with a lot of opportunities to contribute
Climate-conscious people with a financial or tech background can come together to work on something meaningful π€
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The ideas behind ReFi aren't new
Great thinkers, economists, and philosophers have long thought about traits for a more just & sustainable economy
Ideas go from Silvio Gesell's Freigeld and the Sacred Economics concept by @ceisenstein to the Donut Model by @KateRaworth
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Let's do a quick comparison of conventional and regenerative economic systems:
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ReFi can transform the way we view & leverage money
In a #ReFi system, economic activity benefits all participants, instead of
β Extracting resources in an unsustainable way
β Distributing profits unfairly or to only to select few
β Ignoring the value of living ecosystems
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How this works π
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Blockchain networks and smart contracts are advanced tools that help us make ReFi possible.
We can program transactions to fairly reward key actors and redirect resources to those who need them most, while holding all participants publicly accountable
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Ever wondered how blockchains operate? Here's a simple breakdown
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Why does the ReFi movement emerge now? π
People are becoming more and more aware of issues of inequality, exploitation, and unsustainable industrial practices.
Over the last few decades, the limits of many elements of the world's economic models have become apparent π
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ReFi offers the theoretical framework as well as advanced tooling to address these limitations and challenges
Additionally, #Web3 and #DeFi (Decentralized Finance) have emerged over the last years, paving the way for ReFi to come into existence
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Web3 is a movement and set of design principles that revolutionizes digital spaces and the way we interact with the internet π»
Web3 is user-centric, decentralized, and transparent, and can be used by anyone β regardless of background, nationality, or other factors
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Web3 applications take many different shapes, like
π³ decentralized financial services
π²democratic digital governance
π digital public goods
π open games and interconnected virtual worlds
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And what is #DeFi?
DeFi (Decentralized Finance), has emerged out of Web3, and it is a new, accessible, and inclusive financial system with peer-to-peer services
Companies and middlemen (ie banks) are replaced with decentralized software applications and smart contracts
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ReFi β or Regenerative Finance β has evolved out of DeFi. It builds on the principles of its predecessor and interweaves them with theories and approaches from regenerative economics
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Early use cases of ReFi include designing novel ways to fund public goods (like open-source software) and tokenizing environmental assets (like carbon credits) so they can be used in DeFi applications (like DEXes)
But ReFi is also rapidly expanding in other directions
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Some examples:
π§βπ€βπ§ Universal basic income (UBI) (ie. @proofofhumanity)
π° Local currencies (ie @SEEDSeconomy)
πΏ Natural capital-backed assets (ie @CeloOrg's Mento stablecoin)
π² No-loss gambling (ie @PoolTogether_)
π Public goods (ie via @gitcoin quadratic funding)
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This is how @cryptowanderer defines ReFi π
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And here are a few inspiring #ReFi personalities we love π
@annalerner, @ntnsndr, @GabrielaChang17, @gregory_landua, @HelenaMerk, @RegenRene, @serota, @marcjohnson518
@0xthembi, @stenverjerkku, @JessicaZartler
@BenWest, @ohmygong and @W_Alasdair
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Want to learn more about ReFi?
Read our full piece here: blog.toucan.earth/what-is-refi-regenerative-finance/
and sign up to receive our fortnightly newsletter #ReGenerate straight to your inbox:
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We promise to only send cool #refi stuff, no spam π