What is regenerative finance (ReFi) and how can it impact NFTs and Web3?

Market Analysis

On Sept. 30, NFT Steez, a bi-weekly Twitter Spaces hosted by Alyssa Expósito and Ray Salmond, met with Mashiat Mutmainnah to discuss how regenerative finance (ReFi) can provide more accessibility and inclusivity to blockchain technology. 

As a “mission-driven movement,” Mutmainnah explains that ReFi enables users to redefine their relationship with the current financial system and their relationship with finance and wealth.

Currently, in many countries, millions of people lack basic, equitable access to the financial services that would allow them to meet their daily needs.

What if there were newer models that could sustainably alleviate this? According to Mutmainnah, ReFi can redefine what money means and how it’s used.

What is the impact of ReFi? 

Mutmainnah emphasized that ReFi brings awareness to how the present financial systems operate in an “extractive” and “exploitative” manner. She also drew a comparison to fast fashion by explaining that what enables a user to purchase a shirt for $5 comes at the expense of a child laborer. 

These “extractive” systems are no longer working for people since a core tenet of ReFi is equitable accessibility and distribution.

Mutmainnah explained that often ReFi is seen as synonymous to climate, and while that is a pillar, ReFi has enabled “tangible and accessible use-cases.” Users can “plugin” and participate in models and systems that can increase their overall prosperity and that of the ecosystem.

Therefore, ReFi can be considered a way of triangulating elements of sustainability via “stabilizing” the climate and “biodiversity,” while also keeping equitable access within global communities. This has the potential to create new financial models and systems that can increase prosperity.

As Mutmainnah puts it:

“ReFi is helping folks change the way they relate to money.” 

Related: NFT Steez and Lukso co-founder explore the implications of digital self-sovereignty in Web3

Can Web3 and NFTs be used for social and public good?

When asked whether NFTs could be used for social and public good, Mutmainnah referenced a pilot program that involved a “loyalty NFT rewards program.” Akin to Starbucks’ latest NFT loyalty program, Mutmainnah explained how a similar scheme could yield positive and sustainable benefits.

For example, imagine purchasing an NFT that can grant the holder one free coffee for 10 days. In these models, NFTs can yield more economically feasible benefits than buying the item while also bringing more awareness to the good or service.

Contrary to the hype and speculation circulating NFTs in 2021, more creators and platforms are expanding and exploring practical use cases from peer-to-peer and peer-to-business initiatives.

However, that does not mean adoption comes with ease. According to Mutmainnah, beyond NFTs, there are many “infrastructure pieces” to explore, including building out more dynamic products that enable this.

Mutmainnah explained that it’s a dance of sorts between “making a product frictionless” for seamless adoption and empowering the user to be an “advanced” user that takes full “ownership of their assets.”

To hear more from the conversation, tune in and listen to the full episode of NFT Steez and make sure to mark your calendar for the next episode on Oct. 7 at 12 pm EST.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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