Justin Sun’s $1 Million Commitment to Greta Thunberg: Can Crypto Save the Planet?

The Big Pledge

On December 18, Justin Sun, the founder of Tron (TRX), made headlines by announcing his intention to donate a hefty $1 million to climate activist Greta Thunberg. This pledge came on the heels of the COP25 UN Climate Conference held in Madrid, igniting debates not just about climate action, but also about the role of cryptocurrency in this global crisis.

The Cryptocurrency Quandary

While Sun’s generous donation is commendable, it begs the question: how does cryptocurrency contribute to combating climate change? Sun explained to Cointelegraph that decentralized finance (DeFi) platforms and settlements run on cloud computing systems. This, he claims, eliminates the necessity for physical documentation, hence, reducing carbon footprints. Who knew that skipping paper could save the planet?

Less Paper, Less Pollution

Sun elaborated, stating, “Decentralized settlement and decentralized finance are completely run by computers on cloud computing systems, thus eliminating the need for ledger documentation and management records kept on paper.” At this rate, some might argue we could start a paperless revolution; goodbye to all those trees!

Travel Less to Save More

In addition to reducing paper use, Sun pointed out that cloud systems eliminate reliance on physical transportation. As he noted, travel accounts for about 8% of global carbon emissions. By eliminating the need for face-to-face interactions, DeFi could encourage less travel. Who doesn’t want to attend their bank meeting in pajamas?

Shifting Mining Methods

Sun also highlighted an important point regarding energy consumption—specifically, the energy-heavy traditional Proof-of-Work (PoW) mining methods used by cryptocurrencies like Bitcoin. He insists that by shifting to a Proof-of-Stake (PoS) system, ‘massive energy consumption’ can be significantly decreased. In fact, Bitcoin mining reportedly produces over 22 megatons of carbon dioxide per year—an amount to rival that of whole cities!

“By adopting a [PoS] system, it drastically reduces the massive energy consumption used in traditional [PoW] mining method used by Bitcoin.”

A Global Approach

One of Sun’s more optimistic points is the global reach of decentralized financial systems. He believes they can empower those who are unbanked or marginalized by traditional finance systems, which tend to be expensive and exclusory. Imagine a world where opening a bank account doesn’t take a small army and an abundance of patience!

“Decentralized finance systems are available to everyone in the world! Bank the unbanked. Traditional finance is limited and not cost-effective. Enormous resources are required just to open an account. I believe blockchain must be in our future if we want to eliminate wastage and make a difference.” This approach could be a game-changer in creating a more sustainable world.