OKX Ventures, the investment arm affiliated with the cryptocurrency exchange OKX, has officially become a member of the Ethereum Climate Platform (ECP), forming a partnership focused on advancing sustainable climate goals.
In a press release on December 6, the company announced its decision to join the platform, emphasizing its commitment to decarbonizing the web3 ecosystem in response to recent climate reports highlighting the energy consumption of the sector.
The release outlined plans for OKX Ventures, in collaboration with the exchange team, to leverage advanced technology to accelerate the decarbonization of blockchains. The initiative aims to promote more sustainable energy practices in mining and trading-related activities within the cryptocurrency space.
“OKX Ventures, supported by the OKX Web3 team, has aligned with a coalition of companies committed to hastening decarbonization and enhancing climate action by leveraging cutting-edge technology and fostering digital environmental assets.”
In its commitment to reducing greenhouse gases and promoting climate benefits, the company highlighted its use of proof-of-reserves to monitor and validate on-chain activities as a method for lowering emissions.
OKX now stands alongside major technology corporations such as Microsoft, Polygon, and the Near Foundation, engaging in collaborative efforts for climate action within the web3 sector.
All hands on deck for climate sustainability
Industry leaders are actively endorsing recent climate initiatives, emphasizing the shift towards renewable energy solutions such as the establishment of solar-powered Bitcoin mines and the adoption of immersion cooling systems.
Jeff Ren, OKX Ventures Partner, highlighted that the recent partnership underscores the company’s dedication to social responsibility and environmental stewardship through innovative solutions. He expressed, “…We embrace this opportunity and responsibility to pioneer sustainable blockchain innovation to create lasting value for both people and the planet.”
Anna Lerner, Executive Director of ECP, expressed her delight over the partnership, noting that it signals a new era of environmentally conscious blockchain advancement. She stated, “Through this partnership, the OKX Ventures and Web3 teams are demonstrating their leadership in sustainable innovation across Web3. Its partnership with the EthereumClimate Platform and support of Gitcoin demonstrate a dedication to ESG principles.”
Switch to green energy can save miners
The Ethereum Climate Platform was established following the highly anticipated Ethereum Merge, a pivotal moment when the network shifted to a Proof-of-Stake (PoS) consensus mechanism. This transition aimed to foster collaboration with industry leaders and traditional players seeking technological solutions to diminish emissions.
The Ethereum Merge gained prominence for its remarkable achievement in reducing the network’s energy usage by 99%, representing a bold step. This decision followed multiple reports highlighting the substantial energy consumption associated with mining, which triggered widespread backlash from climate activists and governmental bodies.
The Chinese government identified Bitcoin mining activities as a significant factor causing several cities to fall short of their climate targets. Consequently, the government imposed a complete ban on mining-related activities in the country, setting the stage for a migration of mining operations.
In Kazakhstan, this year, the government has curtailed the supply of electricity to Bitcoin miners. This move comes as various climate activists persist in advocating against the Proof-of-Work model used to validate transactions.
In the United States, attempts were made to implement a 30% tax on digital asset miners. The rationale behind this proposal was the assertion that miners were unfairly consuming a substantial portion of the energy supply, leading to increased pressure on daily users of energy resources.
