As the first major DEX to offer this solution, Sushi enables green-thinking individuals by giving them the ability to reduce their carbon impact when transacting on-chain.
The demands of the community were heard, and Sushi will deliver.
Estimated Sushi Emissions Thus Far:
As of July 12th, 2022, Sushi’s total Polygon-chain emissions amount to 301.13 tonnes of carbon dioxide released into the atmosphere. Despite being small compared to Proof-of-work chains, this is impactful; but the cost to offset these emissions amounts to pennies – or less – per transaction.
For reference, to date Sushi’s total Ethereum emissions amount to more than 114,845.24 tonnes. While Sushi does have more transactions occurring on the Ethereum blockchain, this highlights how much greener the proof-of-stake consensus algorithm is when compared to proof-of-work.
What Sushi Will Be Serving Up:
The proposed implementation of KlimaDAO’s offsetting solution will be going live on Polygon. It is safe to say that if user demand exists Sushi could be swayed to bring this solution to other chains. As a first step, however, Polygon-chain provides an ideal environment for this implementation. With the low-cost of Sushi’s carbon-offset fee, this will be the proving ground for whether or not users are willing to commit to taking the initiative over their emissions. With the portrayal of crypto as a relentless carbon-emitting force, crypto-users are ever looking for ways to show they are sensitive to environmental concerns.
A Solution Not Just for the User:
Sushi will be looking to provide options for protocols to incorporate KlimaDAO’s Klima Infinity solution into their platform offering. This will give protocols the choice to factor their footprint into their costs – if they indeed see the value in reducing their emissions impact. Creating a solution that allows a protocol to preemptively combat transactional emissions helps share the burden as it no longer falls solely into the realm of the protocol’s user-base to heed the call.
Protocols will benefit from being able to signal their commitment to greener on-chain solutions by taking this initiative.
Hope for the Future?
With Ethereum continuing to advance towards proof-of-stake, carbon emissions can be expected to drop considerably per transaction. This will make it more palatable for users and protocols to incorporate an offset. Will we see a day when all users and protocols work to cover these emissions? The adoption of Green Sushi on Polygon will provide a strong field test for DeFi’s appetite for going green.
As for other top DEXs, with Sushi – and its green-minded users and protocols – leading the way it won’t be long before they follow suit. This would be a welcome adoption as it signals that the crypto-community shares in wanting environmentally sustainable solutions.
Links to Additional Background Information:
- The original proposal by KlimaDAO
- Sushi's blog post