An Uncorrelated Passive Income Stream
Asset-Backed Tokens are in one sense nothing new – simply digitized versions of age-old financial instruments. Combining them with traditional capital sources represents a near-term opportunity both to secure funding, but also to ensure a new paradigm of stability for both investors and project financiers. Projects like KlimaDAO, the broader Toucan protocol, and a myriad of other projects tokenizing carbon credits show a glimpse of how DeFi can turn cryptocurrency from a speculative digital money into a tool for retail investors to profitably support important and necessary social-economic transformations, with a true commodity-based price floor.
As we continue to expand our portfolio of solar projects in the coming year, we plan to phase in Zuva tokens as an integral part of our long-term capital and governance structure. With the ability to create a store of value for project cash flows, we can more effectively monetize the energy as it is generated. The fundamental approach would be to leverage NFTs as a fundraising mechanism, where funds would be used to finance revenue generating solar projects across Southern Africa.
Our belief in tokens backed by income-producing solar assets is based on the desire to create a token ecosystem that is uncorrelated with the price movement of Bitcoin or the stock market, as well as one that fundamentally incentivizes production of clean energy.
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