TreeCoin has launched its unique Hybrid Token Offering (HTO) in order to raise funds for purchasing 12,000 hectares of fallow land in Paraguay and planting 10 million trees there. If the initiative proves to be successful in the initial HTO, the revenues from the trees would be used to buy more areas and plant more trees. The aim is to use these long term profits to plant around 37 million trees in the heart of the South American tropics over time.
TreeCoin, as the name suggests is an initiative to plant trees, which would serve to be a timber cultivation and reforestation program. The team of TreeCoin believes that the need for wood consumption leads to a huge amount of deforestation, which not only is degrading our environment by destroying the air quality around but is also decreasing the area of rainforests by massive tree cutting schemes. In order to overcome this, TreeCoin has planned to plant eucalyptus trees in a confined area. These trees grow fast and can serve to be an alternate for rainforest trees. By providing wood to the industry themselves, not only will they provide more jobs, but rainforests would also be preserved from more deforestation.
According to the CEO of TreeCoin, Jörg Schäfer, their initiative is based on a lot of research and partnerships with professionals. With their local reforestation partners, they have already hired people and are running a training facility. Apart from this, they have already successfully seen 3,000 hectares of land into development with 2.5 million trees harvested. The CEO explained the need for the project stating:
We consumed roughly 340 million metric tonnes of timber last year. This will only increase each year. Soon we will need one and a half of our planet to satisfy this, which is simply not sustainable. Many countries have already paid the price of deforestation. Paraguay is a particularly tragic case, having lost almost 90% of its eastern forests, causing irreversible damage to the ecosystem. Realistically it will be decades before its woodlands can return to their former glory. But this reforestation initiative is worth the investment, on both a local and global level.
The Hybrid token model allows TreeCoin to sell its security tokens named TREE to investors. These tokens are backed by one actual eucalyptus tree, planted by the team in Paraguay. This TREE would generate 100 currency tokens called TXCs. TXC is assigned to the token buyer and distributed to the project and other beneficiaries.
The tree plantation initiative has started to gain popularity worldwide. The famous YouTuber Mr.Beast has also started a 20 million tree initiative. He partnered up with the Arbor Day Foundation, one of the biggest non-profit organization for reforestation, that would plant a tree for every dollar donated. Seeing the hype of this project, Elon Musk also decided to pool in. He donated 1 million dollars to get 1 million trees planted and even changed his twitter name to Treelon.
Ok, sounds legit, will donate 1M trees
— Treelon (@elonmusk) October 29, 2019
The donations can be made here!