The Synergy Impact Ecosystem
A new mechanism for the decentralized financing (DeFi) and trading of renewable energy assets, combining asset-based financing and supply chain financing within a synergistic, cooperative, digital economy.
Sustainably Store Value
Sustainably store value in a Digital Commodity backed by a pool of renewable energy assets.
Hedge Inflation
As a real asset strategy, energy commodities present an efficient hedge against the loss of purchasing power.
Scale A Climate Solution
Co-create the sustainable future with bioenergy producers to renewably displace coal at industrial scale.
A New Building Block for the Decentralized Financing of Renewable Energy
Industrially scale a climate solution, from just one token, with Synergy! An innovative application in the traditional financial sector, bridging the gap between mainstream and decentralized finance.
Decentralized financing (DeFi) based platforms offer the ability to grow and scale the sustainable economy, gaining exposure to renewable energy projects with ease, while enhancing and automating capital formation, transactions and price discovery.
In this manner, Synergy will bring asset tracking and ownership
into the digital age, while advancing great progress in the real world, by empowering retail, industry and institutional participants alike with the sustainable ability to store value in renewable energy while simultaneously scaling an industry producing the renewable replacement of thermal coal.
A Sustainable Store of Value Ecosystem
underpin by renewable energy production
About a century before Satoshi Nakamoto created Bitcoin, there was Johann Silvio Gesell, an amateur German economist, who believed communities could grow faster with money that would boost real economic activity.
As result of Gesell’s community currency system local jobs and economic activity was boosted without stoking inflation. Both Keynes and Fisher praised Gesell’s community currency system and prescribed the productive mechanism as economic stimulus during the Great Depression.
Today, digital twin versions of Gesell’s communities are expanding once again as Digital Supply Chain Ecosystems, harnessing the technologies of today to create new socio-economic and sustainable development tools for tomorrow,
by allowing companies to create internal assets that unlock liquidity by converting trade assets into cash.
This is the essence of the Synergy Impact Ecosystem: an end to end Sustainable Store of Value community currency and renewable energy financing, trading, scaling and settlement solution platform,
combining asset-based financing and supply chain financing within a synergistic, cooperative tokenized economy,
designed to industrially scale sustainable community and a global marketplace of biocoal production, projects, and partners.
In moving towards a low-carbon future, blockchain is seen as the infrastructure enabler aggregating the formation of communities, capital and industry extending beyond geographical boundaries, to finance and produce local, sustainable goods and socio-economic and environmental solutions. These alliances can operate as conduits to sustainably produce and feedback between small responsible investors and issuers.
As a result of this unique value blockchain offers to supply chains and industry ecosystems, collective cooperative enterprises like the Synergy Impact Ecosystem, can lead and run their own supplier/industry financing and trading ecosystem, embedding finance and peer to peer energy trading services into each renewable energy projects and plants value proposition, with trade credit and digital microfinance loans collateralized by the revenue streams of the whole renewable energy finance, trade and payments ecosystem.
In this sustainable cooperative feedback manner, Synergy will integrate multi-currency accounts, with a native sustainable commodity index tracking the sustainable value of bioenergy, providing the ability to gain exposure to renewable energy assets offering an impactful ability to store value sustainably while passively collaborating in globally scaling an underlying biocoal production industry, coal’s displacement, baseload renewable energy, GHG reduction and sustainable careers.
Why Store Value in a Synthetic Commodity Currency?
Savvy investors know: money supply growth and inflation are inexorably linked [1] 1st monetary inflation leads to asset price inflation then lags into consumer price inflation and this results in a loss of purchasing power [2] Commodities, commodity currencies, and instruments linked to them outperform during periods of inflation and in particular energy which has the strongest link to inflation of all the commodity sub sectors [3] Unlike all other asset classes, commodities are historically undervalued [4] and all indications are a new commodity supercycle has begun [5] [6] [7]
As non-yielding assets, the opportunity cost of holding commodities rises with an increase in interest rates. Conversely when real yields are negative, as they are now, this provides an incentive to buy these inflation hedge assets and in this decades trending inflationary climate, tangible assets, especially commodities and selected equities in the right sector should form the solid basis of the portfolio [8] [9]
As a Synthetic Commodity Currency, Synergy is a vehicle to persistently exploit the inflationary, debasement forces at play today and towards socio-economic and environmental good by combining a passive, yet direct, opportunity to industrially scale renewable energy production globally, gaining exposure to a renewable energy commodity, without having to invest capital to acquire a production plant, pay storage fees or sell physical biocoal.
If your bias is long commodities, long renewable energy, long climate change,
long a future of escalating carbon pricing, long GHG reduction, long sustainability,
long real economy and long community impact then Synergy may be for you.
Stable Value
In DeKo: An Electricity-Backed Currency Proposal Gogerty and Zitoli (2011) postulate the merits of an energy backed currency, representative of a deliverable unit of energy, as a superior stable unit of account: “The terms and nature of delivery are standardized and the assets held by the issuer represent the ability and expectation to deliver a unit of energy as contractually backed.”
Store of Value
In Zradlek’s seminal work, The Future is Money: Currency in a Fully Digitized Economy (2017) the author speaks to the merits of a prepaid forward contract backed currency as a fundamentally better digital stable commodity. “A blockchain currency whose value derives from the rarity and value of the backing commodity would improve the volatility issue and the store of value function.”
Demand driven Value
In What Keeps Stablecoins Stable? Lyons and Viswanath-Natraj (2020) “Introductions of forward and futures markets will attract arbitrage capital from regulated financial institutions, inducing still greater stability, so long as the pegs remain fully credible and collateralized.” And, “If a future or forward does include a discount or premium that is not reflected in the underlying market or in interest rates it can be arbitraged against to make a profit.“
All in one network value
In Why Stake When You Can Borrow? Chitra and Evans (2020) show an in-protocol derivatives market can become the primary borrowing market for a staked asset and provides a mechanistic way to avoid capital flight.
Collaterialized asset value
In Yield, Robinson and Niemerg (2020) describe a standard for a token that settles based on the value of a target asset, on a specified future date, and which is backed by some quantity of a collateral asset.
Productive Value
In The Mystery of Money Bernard Lietaer (2000) speaks to the value of “currencies where people could and would still save but in the form of investments in productive assets” These peculiar currencies will be defined as “Yin currencies” and tend to activate a cooperative “Yin economy” that builds social capital towards community objectives.
A Digital, Sustainable Store of Value Alternative, to Gold or BTC, Producing Socio-economic & Environmental Impact as well as ROI.
Embedding Sustainability
& the Value of Renewable Energy into Money
The emerging world of synthetic assets is one of DeFi’s most powerful bridges into traditional financial markets and allows for the digital ownership of real-world assets without having to physically own the assets. (i.e., take physical biocoal delivery)
Synthetic digitization of real-world productive assets, and their value, presents significant use to both industry and traders, looking for price exposure, by recreating the cash flow of virtually any asset or security through a combination of instruments and derivatives.
As a real asset strategy, Synergy will offer a sustainable store of value, and impactful hedge against different types of inflation, helping industry to secure price and liquidity providers to preserve purchasing power, while synergistically scaling a global industry of renewable energy production.
As a near money instrument, Synergy becomes a potential new means of payment, with a very important feature – variable value redemptions into currency based on Synergy’s native demand and dynamic ability to appreciate/depreciate based on the value of renewable energy and the ecosystem’s ability to scale producers and production.
“If one good is more marketable than another – if everyone is confident it will be readily sold – then it will come into greater demand because it will be used as a medium of exchange.” Murray Newton Rothbard
With Synergy the ability to simultaneously buy a cup of coffee and create positive change at the same time will be possible and will see a social responsibility and sustainable community (ISV) brand extended to the ecosystem’s “sustainable pay and save community” and accepting merchants alike.
Sustainable Asset Backed Digital Currency
Support the flow of productive trade credit to the sustainable economy with the Synergy Sustainable Commodity
Currency System, employing smart financial contracts that are enforceable in-protocol and over time.
Smart contracts are self-executing digital contracts with rules and conditions programmed into them
and are a great fit for automating payments sequentially linked to collateralized commodity positions (CCP) of on-chain cash flows of tokenized biocoal trade.
This will allow liquidity providers to store value in a digitized unit of energy and when that unit of energy
is physically produced and sold on-chain to coal fired generators, via the producers’ tokenized biocoal assets,
to automatically be hedged to the physical energy markets price movements.
In this manner, each Synergy is equivilent to the cash flows of biocoal production and represents how much ownership Synergy holders have in the revenues derived from the Producer’s Production Pool of staked biocoal assets.
Synergy are minted upon forward contracting, tokenizing and staking of each producer’s biocoal production to the Synergy platform and then are subsequently repurchased with the cash flows from in-protocol biocoal trade.
The Synergy Treasury can only increase the money supply as required to finance new production plants and only on the basis of the producers over-collateralization of staked trade assets ~ forward biocoal reserves, cash and cash equivalents.
In this manner, the synthetic financing depends on matching customer longs with shorts, and ensures parity
between assets and liabilities in the same manner as a matched Repo business. The net result will industrially scale a sustainable and sound money ecosystem underpin by renewable energy production.
Sustainable store of value and inflation hedge seeking participants on-board via the Synergy Impact Portal while the B2B Portal serves the platforms in-house industry of partners, spanning plant manufacturing, biocoal production and coal replacement customers, collectively the underlying industry making, storing and delivering the renewable energy and sustainable future value embedded in Synergy.
The Future will be Digital, Sustainable and Inflationary Hedge Accordingly
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What do the experts say?
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.”
John Maynard Keynes
Economist
“The monetary and fiscal measures put in place today will sow the seeds of next decade’s inflation.“
GOEHRING & ROZENCWAJG
Natural Resource Investors
“Unmistakable inflation is metastasizing throughout the U.S. economy and wreaking carnage, particularly among America’s lower and middle classes—pricing them out of homes, hitting them at the gas pump, grocery store, etc. Never-ending-QE may actually be doing more harm than good.”
Keith McCullough
Hedgeye
“The debt is growing faster than the economy. And that is, by definition, unsustainable. Ultimately you will have to get it to where the debt is not growing faster than the economy.”
Jerome Powell
Federal Reserve Chairman
“Printing a lot of currency devalues debt and is the most expedient way of reducing or wiping out debt burdens.”
Ray Dalio
Founder Bridgewater Associates
“Over the past 120 years, sovereign debt levels as high as Advanced Economy debts are today have been resolved in only 3 ways: Default/Restructuring, Inflation, Hyperinflation.”
Luke Gromen
Forest for the Trees
“History shows a sudden influx of ‘new’ money without any corresponding economic growth leads to inflation.”
Ludwig Von Mises
Austrian Economics
“In other words, when M2 goes up a lot, *something* is generally inflating. Either financial assets or goods/commodities.”
Lyn Alden
Lyn Alden Investment Strategies
“A total transformation of our energy infrastructure is required — a worldwide undertaking of unprecedented speed and scale that calls for decisive action over the next decade boosting investment in clean electricity from $380bn to $1.6tn.”
International Energy Agency
Increasing the allocation of credit money for non-GDP transactions (existing financial and property assets) will have no impact on economic growth and will instead promote asset price inflation, sowing the seeds of the next financial crash.
Instead, there needs to be a reallocation of new credit money to facilitate productive investment in businesses.
Professor Richard Werner
Quantity Theory of Credit
“Some of the use cases of new forms of money are truly innovative such as the emerging deployment of DLT to track GHG, green electrons and carbon offsets as well as the ability of NFTs to open up ownership of digital assets.”
Mark Carney
UN Special Envoy for Climate Action
“I think it’s time to figure out where we want to go and then design a money system that gets us there.
I propose that we choose to develop money systems that will enable us to attain sustainability and community healing on a local and global scale.
These objectives are in our grasp within less than one generation’s time.”
Bernard Lietaer
Money Systems Architect
The Synergy Impact Ecosytem is a platform opportunity to hedge and exploit inflationary monetary
and fiscal policies towards industrially scaling global renewable energy production,
GHG reduction and local Socio-Economic Good.
Co-create the Sustainable Future with us!
Are you an industrial pellet producer, biomass aggregator, coal fired generator, merchant or commodity trader, lender, insurance company or other stakeholder with interest to network and scale the sustainable future? Please indicate your interest by signing up below and we’ll be happy to follow up with you shortly!