This article first appeared in Digital Edge, The Edge Malaysia Weekly on November 14, 2022 - November 20, 2022

The first half of the year was bad for the cryptocurrency market, with Bitcoin and Ethereum down more than 50% from their all-time highs in 2021.

Despite the market’s poor showing, investors have not given up on the prospect of a sustained recovery. But one thing that still concerns many is the carbon footprint of cryptocurrencies, which consume massive amounts of energy. 

A report by the Bitcoin Mining Council, based on a voluntary survey it conducted, suggests that while 59% of crypto miners use renewable energy, investors often cannot ascertain the energy source of the cryptocurrencies they invest in, owing to a lack of information. 

This is where “green tokens” come in. A cryptocurrency can be labelled a green token if the miner’s ecosystem is powered by renewable energy, or if the investments in the token are used to fund sustainable, environmentally friendly projects worldwide.

One provider of green tokens is Italy-based Global Innovation Solutions (GSI), the brainchild of entrepreneurs Giuseppe Giacalone, Marco Meo and Donatello Maligno. Named Green Utility Token, the company’s tokens focus on supporting the environment while generating economic value through a sustainable ecosystem.

The Green Utility Token uses BEP-20, the token standard of the Binance Smart Chain (BSC). The latter is a programmable blockchain that supports smart contracts.

Lorenzo Petinari, chief marketing officer of GSI, says the team has set two goals with the launch of the Green Utility Token. “First, [besides] the token consolidation, [we are] also [aiming for] a progressive increase in its long-term value for its owners. At the same time, [the Green Utility Token should be] a favourable, lasting support for the environment.”

GSI is pursuing its goals through three strategies: its buyback programme, sustainable crypto mining and becoming a broker on behalf of its partners in the sustainable industry. 

To generate a strong demand for its tokens, GSI has developed an interesting strategy by investing 21% of its monthly profit into buying back Green Utility Tokens in the market.

“This shows that we first and foremost believe a lot in our project,” GSI says in a statement on its website. It then divests 1% of the number of tokens that it holds each month, which replenishes the number of tokens in the market.

For every tonne of carbon dioxide (CO) saved from being released into the air, the system will generate 221,000 tokens (estimated amount of CO saved in a month), 22% of which will be distributed to Green Utility Token holders in proportion to the number of tokens that they already hold.

Instead of relying on powerful machines that consume a hefty amount of energy to operate, GSI mines its Green Utility  Tokens by activating computer-issued tokens.

According to GSI’s website, “there is no need to use energy and release CO emissions” with computer-issued tokens, and the mechanisms to issue tokens into the blockchain can be activated with a simple click of the mouse.

To certify the real environmental benefit created, the actual confirmation of pollution reduction of each token transaction will be recorded as an additional string of information on the blockchain. 

GSI has established commercial agreements with partners who are involved in the sustainable industry, and acts as the broker — or middleman — for their environmental efforts. Currently, the company partners with Tesimag and Soluzioni&Azioni.

Tesimag is a company that offers a wide range of engineered cutting-edge products and systems for various industries, with specific solutions for each individual need. Soluzioni&Azioni specialises in the marketing of cutting-edge devices in various sectors, especially those related to environmental protection. It focuses on the purification of water and air, with an eye on sustainable mobility and renewable energy.

After receiving full payment as the broker, GSI will pay out 10% to 50% to its partners immediately in US dollars or euros, and half in Green Utility Tokens.

“This step marks a clear [difference from] any other project. Here, we intervene directly and forcefully on the market whenever there is a request for performance from companies. Every order received by GSI will [lead to] an automatic and natural increase in the price of the token,” says Petinari.

As at Nov 9, a GSI token was worth US$0.081 (or 0.081BUSD) on Pancakeswap, according to cryptocurrency tracker site Geckoterminal. From 2023 to 2025, GSI tokens will be listed on Cryptosmart, Kucoin and Binance in stages.

Currently, GSI only collaborates with partners in Italy’s sustainability sector. “We are open to new collaborations and [aim to expand the number of our] partners internationally. Join us to reduce environmental pollution,” says Petinari.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.