PERL.ECO COMMUNITY UPDATE
Strategising, planning, and negotiating in stealth and the long challenging path to clarity on key regulatory requirements and necessary approvals have kept us from sharing with you a lot of what we’ve been building towards over the years.
Until now…
To get to this point, we are now working with our partner AirCarbon Exchange, a world leading regulated carbon exchange based in UAE. See Press Release here.
Now we’ve done much of the exhaustive work needed, we want to now present our plan to the PERL community.
TLDR — OUR PROPOSAL FOR THE PERL COMMUNITY
- Working with AirCarbon Exchange, we will launch the PERL.eco Future Carbon (PFC) and regulated decentralized PERL.eco Carbon Exchange (PCX)
PFC will be regulated tokenized fractional future carbon credits, which can be acquired at a significant risk-weighted discount to spot prices. PFC will be an innovative new financial instrument enabling carbon futures trading in high-quality credits (that can trade at a premium) sourced from carbon projects worldwide.
PCX will be the world’s first fully regulated decentralized retail carbon exchange platform allowing PFC and other environmental assets to be traded against the PERL and other liquid assets. PCX will eventually be a new gateway to access future carbon credits, which is not currently available to retail investors.
- PFC will be sourced from high-quality carbon projects worldwide that PERL.eco uniquely has direct access to
- PERL.eco will be the exclusive first purchaser of the PFC on launch and make them available to PERL holders
This is a lot to take in, so let’s break down what this proposal means and how it can benefit the PERL community…
PROPOSED PERL.ECO CARBON ROADMAP 2023
The proposed roadmap for PCFs and PCX in 2023 and beyond.
Q1 2023
PERL.eco partnership with AirCarbon Exchange on PERL.eco Future Carbon (PFCs) & PERL.eco Carbon Exchange (PCX) announced
Regulated PFC and PCX collaboration with key carbon industry partners launched
Press Release
Q2 2023
Detailed Technical Roadmap for PCFs & PCX Build released
Development milestones and timeframes published by the development team
Q3 2023
PFC (Pilot Soft Launch)
Deployment of innovative discounted PFCs sourced from future carbon credit streams of high-quality carbon projects worldwide
PCX (Prototype Release)
PERL.eco Carbon Exchange (PCX) consumer platform for consumer trading in carbon credits (regulatory approvals pending)
Early prototype release for preliminary community access and testing
Q4 2023
PCX (Alpha Release)
Limited MVP of PCX platform released (regulatory approvals pending)
2024 onwards
PCX (Beta Release)
Production-ready Beta for community access and testing
HOW DOES OUR PROPOSAL BENEFIT THE PERL COMMUNITY?
Massive Growth in Voluntary Carbon Markets
We want to connect PERL holders to carbon markets set for massive growth.
Recognised financial advisors like McKinsey, Boston Consulting Group and others all agree that voluntary carbon markets are set to experience enormous growth.
A major driver for value growth centers around supply constraints and potential impending shortages, against a backdrop of rocketing demand.
Carbon Tokenization Is Still A Priority… But Not The Only One
Tokenized carbon remains a key focus for our team as carbon markets continue to heat up. We’ll continue our work to drive adoption for tokenized carbon as supply shrinks and demand continues to surge year-on-year.
But tokenized carbon is just the starting point.
Market Development requires better financial infrastructure and investment instruments (such as futures) that can support rapid adoption with ongoing expansion in trading value and volumes.
PFC and PCX are the next (r)evolutionary leaps forward for tokenized carbon…
WHAT ARE PERL.eco Future Carbon (PFC)?
PFCs are basically tokenized interests in carbon credits to be issued in the future by a carbon project. Early access will mean a substantial discount linked to the basis risks involved. Value is projected to increase as the credits progress toward issuance and basis risk is reduced. Any positive market growth that occurs is also captured in parallel.
Working with PERL.eco, AirCarbon Exchange will support the development of the fully regulated PCX exchange platform to enable trade in PFCs.
PERL utility (proposed): Access to PFC (more details to come)
Understanding the Significance of PFCs
The benefits of PFC include:
- Early access to carbon credits at a risk-weighted discount based on a range of basis risk factors (e.g. possible delivery risks, external threats, regulatory change etc). Currently, retail carbon credits you can buy are priced at an extremely very high premium since they’re already passed through many hands in the value chain. The benefits of early access with rapidly growing carbon markets are clear.
A simple illustration of futures vs spot price spread based on discount for basis risk. For a deeper dive on finding value in voluntary carbon and futures, check out this article from Carbon Pulse
- Lower barriers to entry with fractionalized interests in carbon credits that currently prevent most users from trading via existing institutional exchanges. Credits can also be fractionalized according to type, quality and other characteristics that impact pricing. Today’s carbon credit is akin to making a single type of sausage out of a cow rather than dividing it into different grades of meat (e.g. sirloin, tenderloin and ribeye steak) that all command different price premiums.
- Exposure to rapidly growing non-correlated carbon markets with access to PFC assets that aren’t impacted by crypto markets. For example, the voluntary carbon market grew 4x from $500M in 2020 to $2B in 2021. McKinsey estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 (to $50B) and by a factor of up to 100 by 2050.
Forward-funding carbon & conservation projects you care about most: When you buy a carbon credit offset today, you probably have no idea where that credit came from. With PFC, you will know exactly where and how it was produced to align with what you’re most passionate about (e.g. protecting rainforests, ocean conservation, preserving biodiversity, etc).
Why Does PERL.Eco & Crypto Need To Drive PFC Adoption?
The answer is simple: crypto is more flexible and responsive for rapid testing, deployment and adoption. DeFi can create and deploy innovative financial mechanisms and instruments like PFC in the wild today. Traditional Finance will take the time it needs, but meanwhile fast-moving communities like ours will be able to start actively trading PFC.
WHAT IS THE PERL.ECO CARBON EXCHANGE (PCX)?
PCX will be the world’s first fully regulated retail carbon exchange allowing PFC and other carbon financial instruments to be traded against the PERL. PFC and other high-quality carbon assets sourced by PERL.eco directly from supply-side carbon projects and partners, will be released for retail trading on PCX.
PERL.eco will work with AirCarbon Exchange (licensed under the Abu Dhabi Global Market’s Financial Services Regulatory Authority) to help PCX become the world’s first regulated retail carbon trading exchange.
PERL utility (proposed): Access to PCX (more details to come)
We admit, this one is ambitious and will be a world’s first if we can pull it off. We have the right team of developers and strategic infrastructure partners (soon to be announced) to build, market and deploy it live. However, we have to go through the long and challenging process of getting regulatory approvals so that users can have complete confidence in PCX.
But with great challenges come great rewards.
Explosive growth is being fueled by companies and countries seeking to meet their emissions reduction commitments soaking up credits voraciously worldwide. With existing exchanges focused on institutional carbon trade, PCX will be a 1st mover in giving retail buyers easy access to future carbon credits as a tradeable asset class.
Major Announcements & Events in 2023
Launches and media blitzes will be timed in line with global environmental events, including:
- Earth Day (22 April)
- World Environment Day (5 June)
- World Nature Conservation Day (28 July)
- Zero Emissions Day (21 Sept)
- Energy Efficiency Day (5 Oct)
- COP 28 (30 Nov — 12 Dec)
- International Reducing CO2 Emissions Day (28 Jan 2024)
Now that we’re out of stealth, we’ll be releasing more detail on PFCs and PCX regularly throughout 2023.
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We know that’s all a lot to take in. Hopefully the key takeaway is that you know we’re still working hard as ever to create real utility for the PERL and value for our community..
Stay tuned for more…
Disclaimer: Please be aware that no portion of this article should be construed as financial advice or a solicitation of investment. We recommend that you consult a licensed financial advisor before investing, speculating, or trading in any digital currency or in any other asset class. Always do your research and don’t use any funds you can’t afford to lose.
