Trust and Trustlessness

The final and most important component is that of trust.  Trust on the part of investors and liquidity providers that not only are projects being executed halfway across the world, but also that they are generating power that someone is paying for.
A key factor behind why so many tokens in the crypto space without “real world” utility or assets behind them still manage to attract liquidity is that the underlying blockchain provides a transparent mechanism for enforcing the contracts behind transactions. Power and trust is distributed (or shared) among the network’s stakeholders (e.g. developers, miners, and consumers), rather than concentrated in a single individual or entity.
Since our portfolio consists of projects installed in countries that most liquidity providers have and will never visit, the market faith in the value of Zuva depends on the extent to which we can make the actual process of minting new tokens fully backed by kWh production trustless and recorded on the blockchain.  The most straightforward way of doing this is recording kWh production directly to the blockchain at the moment of generation and triggering token minting once the kWh “mining” contract is executed.  We are considering making these governance tokens non-fungible, so as to more transparently associate kWh generated and recorded on the blockchain with the specific power purchase agreement governing its production and consumption.
Ideally, the payments made by electricity buyers towards the power purchase agreement would also be recorded on the blockchain so that a clear path can be drawn between kWh generated, token minted, power consumed, and then paid for by the user - proving not only the solar electricity backing, but also (and more importantly) the USD cash equivalent value of that electricity.  Even better if the power purchase agreement itself was a smart contract.  Steps 1-3, from power generated to power consumed can be tracked and implemented on the digital ledger. Local currency regulations will determine the extent to which the entire process can occur digitally.  Most countries in which we plan to operate will likely require payments made by energy buyers to be manually onramped in order to provide blockchain record of purchase transaction.  But regardless of the specific mechanics, proof of electricity generation and customer payment can be provided in a trustless manner so that project status and actual backing of each minted token can be verified.

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