The thought behind the tree backed stablecoin is to allow for a fully decentralized asset backed stablecoin. Anyone, anywhere who has a forest can enroll their forest to back the stablecoin. The market tracking asset that this stablecoin is pegged to is the value of wood. This wood is kept safe in living trees. Not only is the amount of forest backing, over collateralized (in case of fire or accidental tree cutting) but the amount of wood present grows over time as the tree grows. The selection of trees could be done either by the purchasers of this stablecoin or a DAO could help guide the selection of forests that become stablecoins. Satellite imagery can provide a near real time analysis of the quantity of wood and also the type of wood. Once enrolled the stablecoin can not be redeemed for its underlying asset (wood) until a sustainable lockup period is over (around 20 years). As more forests become enrolled into the ecosystem there is less available supply for the larger wood market, with the same or rising demand for the value of wood, the value of the stablecoin increases. This could create a problem scenario as well, as there is more of an immediate incentive for people to sell their forests for wood. To curtail this, the incentive for people must be met at the immediate level as well as the long term. Immediately upon enrolling their forests the owner of that forest receives a crypto card (mastercard or visa) that card has the monetary value of the forest on it able to be spent by the landowner for whatever they may need. Then into the long term, with this same card, rewards are accumulated. These rewards come from interactions with the stablecoin (the buying and selling of it). During each interaction a tax is placed. This tax accumulates and is distributed to all of the landowners ensuring that they get continuously rewarded until the stablecoin is eventually redeemed for the wood (20 years later). Currently I am seeking a team that would like to organize a DAO for the creation of this stablecoin, partners, funding, and developers. Interested in hearing thoughts, comments, questions, ideas.
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