Methodology for Low-Carbon Cryptocurrencies

This proposed methodology applies to low-carbon cryptocurrencies (e.g., Proof of Stake) that displace more energy-intensive cryptocurrencies using Proof of Stake (e.g., Bitcoin) for customer order transactions. The proposed methodology is globally applicable.

The draft methodology was rejected by Verra, per Section 2.1.5 and 2.1.6 of the VCS Methodology Development and Review Process, v4.4 (PDF). The decision was based on unmitigable risks associated with:

• the lack of regulations and oversight by authorities;
• recent fraudulent activities in the cryptocurrency space;
• the lack of VVB capacities to assess the methodology and project activities against the VCS Program rules and requirements, and mitigate the associated risks; and
• the current evolution of the cryptocurrency market that may impact common practice and additionality.