• GLO will be a 100% fiat-backed stablecoin, launching on Ethereum and Polygon
• We expect to launch after Ethereum moved to version 2.0, which reduces 99.95% of its energy expenditure
• Polygon has committed to going carbon negative
• This means buying and transacting GLO will not cost a lot of energy
Why this matters:
One of the most frequent objections to crypto projects is that they’re bad for the environment. We take this seriously and believe that global poverty and environmentalism are inextricably linked. We shouldn't solve one problem while making the other worse.
How Ethereum 2.0 and Polygon keep our environmental impact low
One network at a time:
• Ethereum 2.0 is different from its predecessor in that it works on a proof-of-stake consensus mechanism. The Ethereum foundation estimates that this move will lower Ethereum's energy consumption by ~99.95%. (For a general overview, see these articles in Ars Technica and the New York Times.)
• In June 2022, Polygon achieved lifetime carbon neutrality by partnering with KlimaDAO to retire $400,000 of carbon credits. (You can find a primer on retiring carbon credits here.) This is the first step on Polygon’s path towards being carbon negative.
What if Ethereum or Polygon don’t meet their goals?
If Ethereum hasn’t completed its transition by the time GLO goes live, or if Polygon dramatically changes course, we’ll scope the harms that GLO is generating and plan to compensate for them. This might include purchasing carbon offsets, donating to a conservation organization, or changing some aspect of GLO’s implementation.