What is a MERIT token?

MERIT is a virtual currency (a token) that represents and protects the work nature does to sustain life by removing and storing carbon and hosting biodiversity. MERIT is issued to landowners based on the ecological value of their lands for as long as nature is preserved.

The first version of the MERIT token represents 100 kg of CO2 sequestered by a specific plot of land added to the Single.Earth platform. To offer a holistic approach, indicators on biodiversity and carbon stocks will be incorporated into the next iteration of the token.

Single.Earth creates a digital model of each plot of land and uses it as a base for tokenization (see the article on Land Assessment and Monitoring), turning the values generated by the carbon and biodiversity models into digital assets – MERIT tokens.

MERIT tokens are utility tokens using the standard SPL (Solana Program Library) contracts. The utility value of the tokens is related to the sustainability (ESG) goals of companies, where MERIT contributes to fulfilling these goals.

MERIT is built on the Solana infrastructure, which has a small ecological (energy) footprint. Solana uses a PoS (proof of stake) proofing mechanism, as opposed to PoW (proof of work), utilized by, for example, Bitcoin and Ethereum. The time anchors stored in PoW blockchains are therefore with a larger ecological footprint than the rest of the MERIT ecosystem. Solana was chosen after long deliberation based on both technical and ecological reasons - all PoW blockchains had to be eliminated, as were the chains with exotic contract languages, low transaction throughput, and the ones with an insignificant presence on exchanges.

What makes the MERIT token unique?

• Utility value, representing a contribution to ESG goals. ESG disclosure and due diligence regulations will be enforced on many large companies and financial market participants over the coming years. Also, companies increasingly improve and report on their ESG performance voluntarily to meet investor and consumer demands and to create a competitive edge.
• A cap is limited to the amount and quality of nature on Earth, the regular minting cycle, and no fixed supply as the number of tokens in circulation is ultimately limited by the planetary boundaries.
• Designed to become a payment instrument with relative price stability and to be used in daily transactions so that with every payment we all give back to nature.
• Holistic ecosystem valuation and tokenization. MERIT tokens will go beyond carbon removal only by incorporating additional indicators on carbon stocks and biodiversity.

What's the minting process?

The minting process is run at regular intervals, and each time the threshold for the MERIT token to be generated is achieved (i.e., 100kg of CO2 sequestered), one MERIT is minted. All minting parameters, models, and source data are published on GitHub, hence the minting procedure can be reconstructed and verified based on the GitHub data only. This mechanism ensures the transparency and auditability of the entire minting process. It's also a foundation for any collaborative efforts in the future that would take place outside the Single.Earth domain, such as crowdsourced science initiatives and DAO (Distributed Autonomous Organization) will be set up for governing a global scientific effort to accurately and consensually describe ecosystem services creation and value.

How many MERIT tokens are there?

The total number of MERIT tokens changes over time. It is increased by the minting based on the work done by the lands on the platform and decreased by burning tokens (permanently taking them out of circulation). There is no fixed circulating supply of MERIT tokens.