Algorand’s Formula E NFTs tackle climate change directly

by James · July 13, 2022

Blockchain platform Algorand has merged with Imagine Racing for a series of NFTs to join ABB FIA Formula E electric race series.

Each of the 1000 limited NFTs, designed by the 3D artist Adam Spizak and creative agency Fun dayshows a helmet representing one of the eight venues hosting an ABB FIA Formula E race.

“For us, there is nothing that tells the story of a driver’s journey like their helmet,” said Matty Schwartz, creative director at Funday. Decrypt. Schwartz explained how each of the eight NFT designs “refers to iconic images from their respective regions,” while graphics depicting local foliage “grow visually to highlight our desire to create a healthier planet.”

The NFTs can be minted the week before each race; on the race day itself, the City Edition helmet NFTs will be unveiled, giving the chance to win unique special editions.

A lucky holder will be able to reveal a Gold NFT that entitles them to claim a 1 in 1 physical racing helmet with art inspired by their City Edition helmet. Another nine silver NFTs can be unveiled, with holders claiming an Infinite Object digital frame with their NFT.

Formula E fans can also collect all eight City Edition helmets for a chance to win the grand prize: an “ultimate Formula E racing experience” in 2023.

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What is formula E?

The ABB FIA Formula E Series was launched in 2014 and is a motorsport championship for electric cars; in 2020, the series was awarded FIA world championship status, making it the first single-seat racing series outside of Formula 1 to achieve world championship status.

It is also groundbreaking for the shift towards electrification, both in the motorsport world and the wider transport world. Ahead of the COP26 conference, Formula E chief Jamie Reigle spoke pointed towards motorsport’s ‘crucial role’ in driving technological development that can be used for daily use. Reigle said that Formula E “serves as a powerful platform for showcasing innovative transport solutions for living a sustainable lifestyle.”

Just as Formula E aims to bring sustainability ahead of the motorsport world, Algorand tackles the energy consumption problem of the blockchain and cryptocurrency. Where leading cryptocurrencies Bitcoin and Ethereum use the notoriously energy hungry proof of work consensus mechanism, Algorand uses a new Pure Proof of Stake (PPoS) model which, it claims, makes it the “greenest blockchain.”

Algorand claims that a final transaction on the PPoS blockchain generates around 0.0000004 kg of CO2 against 338 tonnes of CO2 for a Bitcoin transaction. The Bitcoin blockchain also uses an estimated 87 terawatt-hours of energy annually, according to Cambridge Bitcoin’s power consumption index–more than many small countries.

Make NFTs sustainable

Talking to Bloomberg Earlier this year, Algorand Foundation chief Staci Warden explained that evidence of work blockchain energy consumption makes them a no-go for US businesses. “For companies that know they have to be green and have ESG goals that they have to meet, they are not going to tolerate putting big companies on a blockchain that uses a lot of energy,” she said.

She highlighted the example of the World Wildlife Fund, which abandoned an NFT launch earlier this year after facing criticism of its environmental impact. Although WWF’s NFTs were launched on Polygon, a proof of blockchain, she pointed out that environmentalists were “up in arms” about the fact that Polygon is built on top of the evidence of the work Ethereum blockchain. “The World Wildlife Fund had to take back the NFTs, the guys who bought the NFTs were crazy. It was all just a mess, she said. “And that’s because the World Wildlife Fund did not choose a carbon-negative layer 1 blockchain, as Algorand is.”

To maintain its carbon-negative footprint, Algorand participates in various initiatives including the partnership with ClimateTrade to compensate for carbon emissions; Algorand and Envision Racing are donating all proceeds from the sale of the NFTs to plant mangrove trees in Madagascar as part of their “Race Against Climate Change” campaign.

As part of a broader commitment to sustainability, the Algorand Foundation is collaborating on projects such as SailGP and Climate Ride, as well as building partnerships with environmentally conscious blockchain projects such as Global Carbon Holding and PlanetWatch. Algorand has also launched eye-catching initiatives to raise awareness of sustainability, by buying billboards in Times Square and turning them off to highlight their energy consumption, as well as creating air-purifying billboards in Berlin.

Ultimately, so Algorands creates Silvio Micali, sustainable blockchains are an important tool in the mission to create financial inclusion. “The less privileged are the first to suffer from the deterioration of the environment,” he said. “A blockchain that is bad for the environment is a bad blockchain. Period.”

To find out more about the Envision NFT series, click here. To learn about Algorand’s environmental initiatives, click here.