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This is our submission for the Solana 2023 Grizzlython.
Repos (in order of importance):
- foliage-detection (PDA methods are called here)
- soliage-oracle (Solana program code here)
- token-generator
- arbon-front-end
The Arbon protocol is an oracle-based issuer of carbon offset tokens (COT) issued on Solana based on AI-assisted detection of carbon sequestration across woodlands. This MVP utilizes satellite imagery from across the Amazon rainforest, minting the carbon sequestration power of this massive forest into an on-chain real-world global asset (RWGA). Arbon encapsulates the entire carbon credit lifecycle from creation to offset and increases efficiency manifold.
Consumers and polluters can offset their carbon outputs by verifiably burning their COT on-chain. This increases transparency in these traditionally opaque acts. Consumers are overpaying for carbon credits due to lemon problems. The traditional market is fraught with fraud due to its novelty and opacity. Putting everything on Solana in plain view of the public, always auditable, will make for a more trustworthy marketplace where the protection of the planet is where it belongs: front and center.
The most revolutionary impact of Arbon is on producers. It solves the "Last Mile" issue for carbon credits through its unique stewardship program. Any user can purchase the NFT that elevates them to a stewardship level over a particular parcel of land. The NFT provides the owner with a steady cash flow of COT according to the sequestration rating of the parcel, as determined by the oracle network. The NFT can be seen as a business investment in itself and can be valued with the discounted cash flow model, incorporating the COT cash flows and a discount factor based on the difficulty of managing the parcel and the risk of the COT cash flows disappearing. Developing the parcel by planting trees will increase the regular cash flows and thus increase the value of the stewardship.
Thus, the role of the steward becomes ensuring that local landowners plant trees or maintain forestry sustainably. The steward is essentially an agent representing local landowners in this global carbon offset market run by the Arbon network. A steward that can more efficiently manage landowners and effectively increase COT cash flows is willing to pay more for the stewardship NFT.
The whole system is run by oracles that automatically and regularly pass the values of each parcel by analyzing satellite imagery. There is no need for expensive and untrustworthy experts. The oracle system will itself grow into market as well, incentivizing better computer vision through game theoretic incentives. The carbon sequestration rating will therefore transition to a more and more accurate value as the network grows and will start incorporating more than just canopy foliage through more robust algorithms and imagery taken in different wavelengths. This would add factors such as elevation and carbon stored in soil to the sequestration rating.
