NEAR Protocol Potential Unveiled by Open Forest Protocol

Jessie A Ellis  Sep 10, 2023 21:23  UTC 13:23

3 Min Read

The internal pitch deck of Open Forest Protocol (OFP) surfaced on Reddit. OFP, a pioneering project on the NEAR Protocol, offers a unique perspective on the potential trajectory of NEAR's growth.

OFP is poised to revolutionize the voluntary carbon market, currently valued at around $2 billion USD. Projections indicate a potential surge to $50 billion USD by 2050. The project leverages open-source technology to introduce 'real-world assets' related to carbon sequestration and a 'new asset class' signifying a quantifiable amount of captured carbon. The ultimate goal? Establishing OFP as a trusted source for affordable, high-quality carbon credits.

Slide 5 from the leaked deck highlights the distinct advantages OFP holds over conventional verification methods. Open-source projects like OFP are gaining momentum. The OFP Explorer, as mentioned in the document, offers a transparent snapshot of each project's status within the network. Slide 10 reveals OFP's remarkable market fit, considering it's been operational for just seven months. With a project pipeline 20 times its current size, OFP's influence is anticipated to grow substantially.

OFP's approach to carbon credits is noteworthy. These credits, traditionally viewed as commodities by regulators, are transitioning from an off-chain, analog format to an on-chain digital one. This not only simplifies regulatory disruptions but could also become a tax revenue source for governments.

While specific organization names remain undisclosed, Slide 13 hints at potential collaborations with major partners. Current OFP projects are forecasted to generate nearly $4 million in protocol fees within the next two years. The emphasis on forest initiatives indicates a potential for this revenue to recur annually.

Furthermore, the full 'on-chain' nature of these credits ensures compatibility with DeFi markets and liquidity pools. If the leaked deck holds true, OFP might emerge as one of the first revenue-positive ReFi projects, potentially generating an estimated $200m USD annually for the ecosystem and over $12m in yearly fees.

As an early venture in the NEAR ecosystem, OFP is strategically placed to contribute to NEAR’s growth, both in terms of ReFi capabilities and liquidity enhancements. Despite being operational for a mere seven months, OFP has gained significant traction with a project pipeline 20 times its present size, signaling a robust market fit. The project’s carbon credits are fully ‘on-chain,’ making them compatible with decentralized finance (DeFi) markets. They are also categorised as commodities by regulators, facilitating a smooth transition to Open Web infrastructure. Leaked slides hint at upcoming major partnerships that could further amplify OFP’s value and make it a pioneering, revenue-positive ReFi project.

NEARWEEK serves as the primary hub for all NEAR-related content. As the official NEAR Protocol newsletter and community platform, NEARWEEK extends beyond traditional journalism, actively engaging with and contributing to the NEAR ecosystem. NEAR's vision is to introduce a billion users to the boundless potential of Web3 through the Blockchain Operating System (BOS). With its high-performance, carbon-neutral protocol, NEAR provides a unified platform for exploring the open web.

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