To mark the 51st World Environment Day, Klaytn Foundation, the non-profit entity established to globalize and decentralize the ecosystem of South Korea's leading Layer 1 blockchain Klaytn, signed an MOU with Crypto Workers DAO and Prometheus Space Power for a joint project to effectively respond to climate change and expedite the energy transition towards decentralized renewable power generation.
Working together with Crypto Workers DAO, which leads multiple ESG projects aimed at mitigating global warming issues and unemployment in underdeveloped countries, and Prometheus Space Power, a leader in energy metering and supply management technologies for consumer-centric green energy conversions in Europe, the three organizations will incorporate Klaytn's blockchain technology to create decentralized digital asset finance solutions for renewable energy production and supply.
This will help transform the energy industry, which is currently dominated by large central suppliers, into a new scheme in which small energy producers and end-consumers, such as local communities, cooperatives, decentralized autonomous organizations, or individuals, can participate in and benefit.
With global reliance on fossil fuel still high and the necessity for carbon neutrality becoming more significant, Klaytn Foundation has been seeking ways to contribute its reliable blockchain technologies to global projects designed to reduce human carbon footprint. In addition, Klaytn Foundation and the two partnering organizations expect the decentralized renewable energy business mechanism to enhance energy grid reliability and efficiency, by overcoming the limitations in plant capacity expansion and profitability, and the astronomical maintenance costs associated with centralized energy producers.
The three organizations will try to build a sustainable, community-centric energy production and profits distribution system to promote decentralized electricity generation worldwide, contributing to the fight against climate change. The details about the joint ESG project conducted by the three organizations are as follows:
- R&D on reliable data infrastructure technology for renewable energy development
- Technology development for on-chain tokenization of renewable energy
- Creation of a renewable energy development framework through on-chain financialization
- Development of a blockchain consensus layer combined with distributed renewable energy infrastructure
- Tokenization and distribution of carbon credits generated through the process of renewable energy generation and consumption
- Co-development of renewable energy community projects in the US, Europe, and developing countries
- Creation of a financialization mechanism for decentralized renewable energy development in underdeveloped countries
- Support for the global solidarity of energy independent communities
"Klaytn Foundation has prepared this partnership to use Klaytn's blockchain technology to drive real change in the climate crisis and energy independence," Dr. Sam Seo, Representative Director of Klaytn Foundation, said. "This project will help Klaytn to diversify its digital asset portfolio through various ESG activities, including projects to tokenize the economic value of renewable energy produced around local communities or guilds in the future, while creating practical examples of how blockchain can be used to improve the quality of human life."
"This partnership will enable us to implement a new strategy for energy development in underdeveloped countries along with energy transition in developed countries," said Jung Hyouk Zhang, Founder of Crypto Works DAO and CEO of Barago. "The energy development business is one of the largest job creators in underdeveloped countries. We expect this partnership to be an important opportunity to reduce employment issues in these countries."
"We hope this partnership will set out an important milestone for technological convergence between the power semiconductor technology-based 'off-chain system' and the 'on-chain system' of the crypto economy, which is used to financialize the energy properties," said Chinui Kim, Managing Director of Prometheus Space Power. "I also anticipate this joint project will expedite cross-investment and redistribution of surplus power among energy communities scattered across the EU countries, such as Andalusia in Spain, which is currently working on consumer-centered energy independence community projects."