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Nature-backed economy explained

What is Nature-Backed Economy?

A nature-backed economy is an economic model where the value of tokens and assets is backed by the health and productivity of real ecosystems, creating alignment between financial value and ecological health.

Nature-Backed Economy Definition

A nature-backed economy is an economic system where financial value is directly tied to the health and productivity of real ecosystems. Unlike traditional economies where value is abstract or backed by fiat currency, a nature-backed economy creates alignment between financial returns and ecological restoration.

In OASA's model, tokens represent tokenized access rights to land held in perpetual commons. The value of these tokens increases as the land becomes healthier and more productive through regenerative practices.

How Nature-Backed Economy Works

Ecosystem Health as Value

In a nature-backed economy, value is measured by:

  • Soil Health: Organic matter content, microbial diversity, water retention
  • Water Systems: Water retention capacity, aquifer recharge, water quality
  • Biodiversity: Species diversity, ecosystem function, keystone species presence
  • Carbon Sequestration: Carbon stored in soil and vegetation
  • Ecosystem Productivity: Food production, water availability, air quality

Token Value Linked to Regeneration

Tokenized access rights in OASA projects:

Nature-Backed Economy vs. Traditional Economy

Aspect Traditional Economy Nature-Backed Economy
Value Backing Fiat currency, abstract Real ecosystem health
Incentives Extraction, growth Regeneration, restoration
Returns Financial profit Ecosystem health + access
Timeframe Short-term Long-term
Land Tenure Private property Perpetual commons

Nature-Backed Economy Explained

In OASA's regenerative commons economics:

  1. Land is held in trust: Land is placed in perpetual commons through perpetual land trust, ensuring it can never be sold
  2. Tokens represent access: Tokenized access rights give holders access to use the land
  3. Value increases with health: As ecosystems regenerate through regenerative practices, the land becomes more valuable
  4. Returns compound in health: Returns manifest as improved soil, water, air, biodiversity, and community resilience
  5. Long-term alignment: Financial incentives align with long-term ecological health

Benefits of Nature-Backed Economy

  • Ecological Alignment: Financial incentives support rather than harm ecosystems
  • Long-Term Thinking: Encourages intergenerational responsibility
  • Regenerative Practices: Creates incentives for regenerative practices
  • Permanent Protection: Land held in perpetual trust can never be sold
  • Community Benefit: Value accrues to communities and ecosystems, not just individuals

Nature-Backed Tokens

Nature tokens in OASA projects:

  • Represent tokenized access rights to land
  • Are backed by real ecosystem health
  • Increase in value as land regenerates
  • Create alignment between financial and ecological returns

Regenerative Finance and Nature-Backed Economy

Nature-backed economy is part of the broader regenerative finance (ReFi) movement, which aligns capital with ecological and social regeneration. OASA's model demonstrates how nature-backed tokens can finance regenerative projects while creating permanent protection for land.

Learn More

Read Rethinking Wealth for detailed analysis of nature-backed economy.

See also: Nature-Backed Economy, Regenerative Commons Economics, Tokenized Access Rights

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