For this reason, Menthol Protocol`s mission is to empower any individual or organization with a CoolPool, which is an easy-to-use Menthol Protocol user account. It enables you to offset your entire historical carbon footprint and automates future emissions’ (over-)compensation.
The first and foremost important step in fighting carbon emissions is by far to reduce the first, second, and third scope emissions drastically through innovations, thoughtful consumption, new processes, and optimized infrastructure.
Secondly, assessing the remaining individual carbon footprint and overcompensating for it as enabled through the carbon credit offsetting market.
This market is fuelled by environmentally friendly projects which have a measurable impact by prooving the offsetting of a certain amount of CO2. These projects are assigned carbon credits which, through the assessment and certification of trusted third parties, can be sold to individuals and organizations all seeking to account for their individual carbon footprint.
Our mission is to be a bridge, automating the processes between the demand and the supply side.
By digging deeper into our customer segment analysis, various use cases and customer persona exist.
Understanding Menthol Protocol from a platform economic perspective, it appears clear that Menthol Protocol is to be understood as a multi-sided platform with the aim to harness direct and indirect network effects and penetrate the market on all relevant sides.
The steadily growing awareness of the climate crisis and the sincere will to act are driving the acceptance and spread of Climate Tech. Market predictions show a strong and growing demand for impact tokens, especially for carbon credits.
Users who already offset their carbon footprint by purchasing carbon credits jointly create strong buying power, accelerating the process of economic and environmental regeneration.
Looking at the indirect network effects, a plethora of impacts can be identified. While the direct network effect is theoretically defined through growing user numbers increasing the user value, the indirect network effect describes the platform’s growing value through the increase in suppliers and other value-adding service and product providers for the platform itself. The more users the platform has, the more likely it is to find strong suppliers or value-adding partners.
With this in mind, Menthol Protocol, as a Web3, open source, and community project, focuses on collaborating with high-quality and value-added ReFi projects that offer impact tokens in order to concentrate the supply side of the consumer carbon credit market into one handy platform. Recognizing that we can only fight the climate crisis through collaborative efforts, Menthol Protocol has already established several partnerships with key players on the ReFi supply side. Other value-added service partners enabling Big Data-based quality assurance of ReFi projects can be considered as additional market players in Menthol’s ecosystem.
If we look at the consumer side a little more closely, all individuals and organizations can be divided into “web3” and “non-web3”. For both, Menthol’s mission involves offering a complete end-to-end solution that automatically calculates and offsets their emissions.
This enormously strong use case presents itself differently in these two subgroups: decarbonizing the web3 world represents Menthol Protocol’s core competence, and we can already serve entire networks and dApps at this stage. Whether in the web3 B2B customer segment or in the handling of single wallet owners and communities, which form the web3 B2C side, by setting up a CoolPool once, “Regeneration-as-Service” is already a reality. However, in a second phase and already in development with well-known non-web3 customers, Menthol Protocol would like to offer automated solutions to the traditional world as well, including all individuals and organizations that want to account for their off-chain or total carbon footprint.
Let’s now take a look at the customer segments that are important to Menthol Protocol in the early stages and shed some light on their respective user stories:
This group is relatively large, encompassing all individuals and communities of the entire web3 space. Whether it is just HODLing, exchanging cryptocurrencies as a trader, eagerly collecting NFTs, or using the myriad project-specific and token-based use-cases of blockchain companies, transactions are triggered in each of these subjects, and thus energy is expended.
To benefit from all the advantages Menthol Protocol offers, these individuals require no coding experience and can automate their offset targets in minutes. Three simple steps and they are ready to go:
For communities and fans of specific projects, creating a CoolPool brings even more advantages: Because creating a CoolPool is permissionless, so you will need no allowance from anyone to offset any arbitrary address or dApp. This means, for instance, that a community could decide to offset an NFT-Smart Contract to make sure that their beloved project runs green. No matter if the founders behind this project support this effort, the community can make this call themselves!
To achieve this, the community would simply have to add the smart contract address to a CoolPool, agree on a group-based funding method, and decide on their common offsetting goal. From now on, no matter who transfers which NFT within this project, all future emissions will be automatically offset.
Another way of playing a group-based pool could be the following example:
A trading community of 10 members shares trading signals among themselves and jointly allocates profits and losses. Since they already have green awareness but cannot all trade equally frequently, the more active ones would incur higher costs to balance their trades’ emissions. Using Menthol Protocol, the entire community can now easily create a CoolPool and add all 10 traders’ wallet addresses. Thus, in the future, the trades of all 10 members will be automatically offset and paid from a shared funding pool.
The ability to automatically offset individual addresses is already a significant added value. Still, with Menthol Protocol, there is much more: with our protocol, the emissions of entire dApps or blockchain networks can be offset! As an easy-to-follow example, you can look at a DEX, a decentralized exchange. A DEX is a peer-to-peer marketplace where transactions occur directly between crypto traders.
Even though the actual transactions between the users take place directly, the correct handling of the process runs over the Smart Contract of the dApp operator. This smart contract can be added to a CoolPool so that every transaction on this DEX will be observed and calculated by our CoolBot. As a result, every future user transaction via this platform will be offset automatically.
There are already first blockchain networks interested in our service because the ultimate step of directly adding a whole chain to a CoolPool is also possible! This would mean that every transaction on this network is automatically balanced to the desired off-setting goal.
A vast majority on the supply side are ReFi-projects, which enter the market arena as tokenizers of carbon credits. In the first step, they bring their carbon credits on-chain and offer their tokenized green assets to the carbon offsetting market in a second step.
Menthol Protocol operates independently from these carbon asset suppliers. It always acts from the customer perspective, seeking the best market players to offer impactful green assets while using its own protocol as an automated procurement and sustainability system.
Next to its unique features, such as the straightforward one-time set-up, no-code integration, and no loss-sustainability, Menthol sets itself apart from other projects by focusing on becoming the best sustainability middleware, and this also from the perspective of green asset suppliers.
Lossless sustainability for positive climate development is possible through the integration of credit protocols and the use of earned interest to cover all costs incurred.
In doing so, Menthol Protocol’s experience has been that presumed ReFi competitors tend to view our protocol as an additional layer to their own service offer to enhance their demand-side customer relationships.
Consequently, Menthol Protocol positions itself as an easy-to-use ecosystem for sustainability solutions within the Web3-space and real-world projects, as well as for tokenizers of green assets and additional sustainability projects.
An average European human is accountable for 15 tonnes of CO2 a year. However, different solutions exist to calculate the individual carbon emissions, any person could easily create a CoolPool and offset their total historical carbon footprint as well as the future one. By simply creating a CoolPool, you could easily decide to offset the footprint of the entire family.
Looking at the segment of non-web3 B2B customers, we see an increasing global pressure to report ESG-related information along the whole supply chain and compensate for scope-2 emissions within the near future. Looking at it from an investor perspective, the need for environmental responsibility is taking an increasingly important role.
Menthol Protocol will allow traditional companies and organizations to report their total carbon footprint to their respective CoolPool, enabling automated offsetting with just a few clicks.
In this vein, Menthol Protocol hopes to create climate transparency and actionability, to enchant the world with climate positivity through community-driven and grass-root kickstarted climate action!