The X Fund — A Collective Decision
A Little Bit of Context
Beethoven X launched the X-fund as a means to come together as a collective to re-imagine what it means to be part of a global community. More than just a financial protocol, Beethoven X is deeply rooted in community development, collaboration and giving back to the beautiful planet that sustains us.
The X fund is a funding initiative that strives to offset the climate impact associated with building and running Beethoven X as well as contribute towards social projects across the globe that are working towards the greater good for all.
As a team, we endeavour to understand and measure our impact on the climate and society as a whole. We continuously strive to reduce our footprint and directly capture what we can’t avoid as well as contribute to the people of our planet in need.
We believe compassion is inherent to Beethoven X as a brand; unapologetically kind and considerate. It sets us apart and it brings us all closer.
There are 3 key principles that the X Fund embodies.
- Unapologetically Generous
- Decolonial and Embodied Decision Making
- Conviction over Convincing
Guided by these principles the X fund creates impact by focusing on 2 key responsibilities: Environmental — Leave No Trace (LNT) and Social — Above & Beyond (A&B).
Leave No Trace
Leave no trace is a simple mitigation process of team and protocol carbon emissions each quarter. Carbon calculations are guided by the Greenhouse Gas Protocol and are split up into 2 main categories: Operational emissions (Transactions on chain and AWS servers) and Team emissions.
We mitigate against our total emissions by investing in nature based carbon capturing projects ( Forestry and Regenerative Agriculture) and in technological carbon capturing solutions.
By the end of Q2, the X fund had deployed funds to a grassroots forestation project in Kenya called TIST to purchase carbon credits to offset our emissions. 3,859.47 USD was used to offset Beethoven’s Q2 emissions coming in at 171 tonnes of C02 (22.57 USD/tonne). The carbon credits were invested through a company called Patch.
Above and Beyond
This initiative looks to cultivate community support by distributing funds to social organizations around the world that address social issues pertinent to the experiences of life endured through circumstance. These organizations can range in topic, issue, country and mission.
Team members are encouraged to connect with their communities, their heritages, and their lineages in order to connect with organizations and social missions that are relevant and meaningful. These organizations are then presented to the X-Fund committee to enter into an embodied decision-making process to decide on fund allocation and distribution.
For Q2, 18,500 USD from the X-Fund was allocated to fund 5 projects chosen by the team. Currently, all of the projects that have received their donations are listed below:
The Forest Garden (5000 USD) — The Forest Garden brings decolonial healing to those who are tackling systems of oppression from the roots by offering training modules, workshops, in-house team training and consultancy.
Climbing out (3000 USD) — Offers fully funded places on 5-day outdoor activity programs aimed at rebuilding confidence, self-esteem, and motivation in people who have been through a life-changing injury, illness, or trauma.
DPJ (1000 USD) — The DPJ is a charity that provides support for those in rural sectors such as agriculture, forestry, and veterinary, a sector that has one of the highest suicide rates.
To learn more about the most recent X-Fund activity check out the following Fireside Chat.
Funding and the Future
Previously, 20% of all protocol fees have been sent to the team wallet to cover salaries. 10% of these funds (2% in total) were directed to the X-fund wallet to fund the initiatives described above. A portion of the funds covered environmental sustainability (LNT), and the remaining flowed to projects that embraced social support (A&B).
However, since the implementation of BIP-35, the team’s portion of protocol fees has been removed. This is due to $25,000 a month being sent from the Treasury to the team wallet to cover salaries. This resulted in the 20% of protocol fees previously directed to the team wallet being re-directed directly to the Treasury. This redirection has since removed any source of funding for the X-Fund.
With the funding structures now gone, it comes down to the community to decide where we go next.
It is important to note the decision to stop funding the X fund was made out of necessity. The longevity of the protocol is a priority, and as it stands, we are as lean as we would like to be. The external macro environment has been challenging to navigate and has resulted in some pretty hard decisions, the X fund cuts among them. We write the article with a sense of sadness, as it is an initiative that remains close to our hearts.
We care deeply about the people we live with and the planet we inhabit, truly, and in essence that isn’t going to change. The team will always support these endeavours, but for the time being, we will have to do that privately. The question remains; what does this mean for Beethoven X and our community?
We would love to continue to support the X fund in whatever way we can, and we hope that the community shares a similar sentiment. That choice, however, is for the community to decide.
We will be opening up a specific channel in Discord solely to discuss the X Fund as a collective. Raise your voice, put forward your opinion and help to shape the path we now take. The future for the X fund is far from over, it’s just time for a change and change we must make together.
We look forward to seeing you all there.
Love as always