Residents of the Republic of San Marino could soon get rewarded in crypto for saving water, recycling and performing other sustainable activities.
San Marino Innovation, a government company tasked to drive “open innovation initiatives,” has partnered with VeChain, a blockchain application platform, and DNV GL, an international certification body, to develop the “San Marino Low Carbon Ecosystem” project, according to a DNV press release.
“The platform will encourage environmentally friendly practices such as water saving, waste disposal and management. The practices will be rewarded through a utility token, the San Marino Innovation Token issued by San Marino Innovation, which can be used to access services offered within the Republic. The introduction of the low carbon ecosystem represents a first global example of incentivization through the use of blockchain technology and a utility token.”
The San Marino Innovation Token will run on the VeChain blockchain.
Says Sunny Lu, CEO of VeChain,
“This is not just a significant milestone achieved for VeChain, but for the entire blockchain community. We will utilize all of our technical know-how, our tokenization experience and the global influence of the VeChain ecosystem to make sure this project can create a tremendous amount of value to the citizens of San Marino.”
Utility tokens are designed for specific blockchain ecosystems. They allow users to transfer and send value to incentivize certain activities. They can also be used as methods of payment for goods and services within the ecosystem.
The memorandum of understanding between the three partners calls for two working groups to be formed with technical and legal specialists and “institutions” so the token can be implemented swiftly and effectively.