Litepaper
TOC
1. Introduction
GreenYield is a simple idea with a huge impact:
Allow “everyone” to collaboratively own renewables infrastructures, e.g. Solar Parks, in ideal, but robust “near shore” locations and share the green yield. With a low entry barrier so that access to offset is democratized and available to everyone. And let it be a co-op member owned which will auto-compound the AUM of the co-op over time, by re-investing the yield from the production into more capacity.
GreenYield DAO LLC (hereafter “GreenYield” or “GY”) is a decentralised autonomous member-owned organisation aka a “Legal DAO” or “Decentralized Autonomous Organisation”) with the purpose and mission as specified in its operating charter to:
“Facilitate the global transition towards collaboratively owned renewable energy by crowdsourcing funding for renewables infrastructure projects and thereby help the world in the fight on the climate crisis for the benefit of future generations.”
GreenYield aims to provide an opportunity for its co-op members and for those participating in the GreenYield ecosystem as holders of the DAO utility token $GreenYield or the $GYLP liquidity bonds to contribute to this purpose.
The $GreenYield token exists to be a utility giving participants in the ecosystem a means to support the project. It’s not a regulated securities instrument and will not pay any interest to it’s holders.
GreenYield will initially focus on building new solar energy plants and will attain the necessary organisation and skills to build and operate these, incl. establishing an operations presence locally and the development of intellectual property, needed for GreenYield to deliver on its mission.
GreenYield is owned by its members who – as holders of the member token $GYMember are equity holders in GreenYield DAO LLC., where they can participate in the GreenYield DAO decisions via its member governance protocol.
GreenYield will continuously re-invest its profits from the production of green energy into more nominal production hardware to accelerate the transition towards a renewable energy society. GreenYield thus essentially auto-compounds the investe capital and the derived greenhouse offset over time - a unique and very attractive feature allowing members to auto-compound their participation and offset.
Copyrights GreenYield DAO LLC.
2. The Challenge
The possibility for everyone to directly contribute to the transition to a renewable energy future is hindered by several factors, including
● The majority of people can’t host renewable infrastructure like solar panels at our homes, and even if we can, that comes with overhead, maintenance, and other challenges.
● Residing/operating in locations where it's not allowed due to local regulations and where solar power installations are ineffective (low amount of sun and/or high levels of sand dust) or a pre-existing high share of renewable energy in the grid.
● The cost for solar when building small production facilities (on your house, for example) is significantly higher than through the use of economies of scale.
2.2 A significant increase in the amount of investments in renewable energy is needed, in particular, traditional renewable energy investments have been by large companies or institutional investors with limited access for smaller private investors. According to the International Energy Agency (IEA), 4.5T USD is needed annually, and this amount will keep increasing until we "catch up". 4.5T USD is approximately 4% of the global GDP, which means that most people and entities need to be mobilized to be able to reach that target, this is not possible with the current level of access to renewable energy investments.
2.3 Large companies and public entities equal a significant amount of bloat, and being less lean, this eats into the potential return of investors and makes renewable energy investments less interesting from a financial point of view than other investment opportunities.
2.4 Traditional renewable energy investment opportunities are relatively illiquid. Selling a renewable energy plant, or a company that holds them has a limited market of buyers, and that leads to the investment opportunity being less interesting from a risk assessment point of view as well.
2.5 High energy prices lead to a competitive disadvantage, in addition to higher inflation and pricing for consumers. Lower energy prices will lead to economic growth, which will create more jobs, lower inflation, and help everyone, in particular the disadvantaged, with lower prices.
2.6 Geopolitically, renewable energy will make countries less dependent on other nations for their energy needs, creating a more democratic and fair world, we believe that every nation has the right to be completely independent and without foreign pressure because of energy dependence on other nations.
Copyrights GreenYield DAO LLC.
3. Solution
GreenYield offers a solution to these challenges by providing easy access to participate in the GreenYield ecosystem and allow GreenYield to develop and operate large and highly effective solar energy parks, financed by DAO Members and by offering the $GY utility token so that everyone independent of how and where they live can offset their impact and contribute to this highly attractive ecosystem.
In addition to this, at GreenYield, our vision is to create an environment where we make renewable energy the most attractive investment opportunity possible, as this is needed to solve the problems we face. We will make it possible for any person, entity, or public body to invest in the GreenYield project for a hands-off investment in renewable energy. We believe that by creating this ease-of-access and a lean organization, we can make it possible for everyone to invest, and with a relatively high yield, and will make the world reach net-zero faster than otherwise possible.
Anyone that passes the DAOs investment member requirements can invest directly in the GreenYield DAO and choose if they prefer to use “paper” (digitally) or tokens ($GYMember) to represent their equity stake. With DAO equity follows “member” status whereby direct governance allows participation in the decisions of the GreenYield DAO.
The GreenYield DAO receives the profits from the operation of the renewable infrastructures e.g. the solar parks. The DAO charter outlines that these profits are to be reinvested into more renewable infrastructure - ie. more parks, thus auto compounding the equity. Via the governance process the DAO members may from time to time decide to pay out dividends to the members.
To further incentivise participation in the GreenYield ecosystem the DAO offers utility tokens as outlined in "GY DAO Tokenomics (see summary below).
Copyrights GreenYield DAO LLC.
4. Technology
The initial renewable infrastructure will be based on high quality Bifacial Solar panels placed in internally (by GreenYield) developed parks in southern Italy - due to the stability, land-cost, high-market price of KWh, and low cost of land, as well as high solar energy intensity and a high annual number of sun hours. Over time, GreenYield may expand to other areas based on their attractiveness for the DAO and its backers, and the ecosystem will be opened for others wishing to run renewable infrastructures.
GreenYield DAO will leverage mainstream blockchains to ensure transparency and immutability in its operations. The DAO will use open-source based smart contracts built with OpenZeppelin libraries for token issuance and to automate governance processes and manage membership. See the technology section of the Tokenomics for details. The aim is to be chain-agnostic.
The GreenYield DAO will use a DAO management tool for member governance based on tokenized membership. Members who decide to be “paper based” cannot vote as voting will be based on token-associated voting rights. Initially delegation of voting rights will not be supported.
Copyrights GreenYield DAO LLC.
5. Organization
GreenYield DAO LLC is the parent company of the GreenYield ecosystem, and it’s owned and operated by its members. The GreenYield project and thus the GreenYield DAO was initiated by the GY Foundation – 100% non-profit member managed DAO - which now holds a minority equity membership in the GreenYield DAO, as it provided the initial project funding and will continue to offer fiduciary guidance via its member governance in operating the GreenYield DAO.
GreenYield DAO LLC is the 100% owner of GreenYield Switzerland, a limited liability entity regulated under the laws of Switzerland, where the daily operations of the GreenYield business operates. The Swiss entity may also – depending on regulatory approvals, in time and if allowed by regulators, offer the DAO tokens as an agent on behalf of the DAO (Which operates initially in non-FIAT currencies only) or, pending regulatory advice the GreenYield DAO may allow subsidiaries hereof to provide regulated access to the ecosystem via locally regulated entities in core markets.
GreenYield Switzerland will be the 100% owner of GreenYield Italy (i.e. Green Renewables S.R.L.), a limited liability entity regulated under the laws of Italy, where the operations of the initial Solar parks are placed.
The GreenYield DAO pledges a minimum of 1% of the EBITDA of the operational/production yield to ecological projects related to the GreenYield mission.
Copyrights GreenYield DAO LLC.
6. Tokenomics
Please see the latest revised Tokenomics document for the latest updated version, which shall always take precedent over this version below.
The GreenYield ecosystem will use four tokens with distinctly different properties. In summary, they are:
• $GreenYield - which has been structured to allow anyone a simple and easy means to participate in the GreenYield ecosystem. The $GreenYield token is a fixed maximum supply token which if held by the GreenYield DAO, and it can only be released from the DAO against contributions of funds into the ecosystem, directed towards buying additional renewables infrastructure. As a utility token with no yield, they’ll be freely tradable across multiple chains and markets.
• $GYWatt representing a 1:1 measure of the installed (nominal) Wp capacity, to ensure verifiable and audited guarantees backing the DAO investments. The DAO charter states the $GreenYield tokens may be released for raising funding ahead of building the corresponding capacity to allow the DAO to run effectively and take maximum advantage of the economies of scale. The minted amount of $GYWatt tracks the building of nominal capacity to make this verifiable.
• $GYMember is the equity representation of ownership in the DAO LLC and will not be freely transferable. Holders may need to provide necessary information for compliance, and trading will require pre-authentication of the buyer and their eligibility to become DAO LLC equity members. Membership is not available to all locations and is explicitly not open where local regulation would prevent membership.
• $GYLP is a liquidity provider token but not in itself yield bearing. It will allow staking in yield generating contracts with varying APRs depending on the minimum participation time, and there will be strictly controlled caps on the maximum amount of yield available to the liquidity providers. Holding $GYLP may require compliance with local regulation, and GreenYield will roll availability out over time based on compliance availability.
The DAO will raise funds to build the renewable panel capacity via:
● Anyone who passes the requirements outlined in the GreenYield DAO charter may buy equity directly in the GreenYield DAO Ltd and become “members” - which will be represented by a corresponding allocation of $GYMember tokens, allowing participation in the DAO governance and any dividends.
● $GreenYield offerings on relevant launchpads and private placements. This will be ongoing based on demand and capacity to expand. As mentioned, $GreenYield tokens may only be released from the GreenYield DAO treasury against contributions towards the expansion of the renewables capacity.
● External financing via banks, leasing agreements, and similar, incl. collateralization of infrastructure and via fiat leasing agreements to allow participation from non-token-based members.
● Listing on relevant markets where green impact demand exists.
GreenYield may, to drive interest and attract further liquidity, from time to time sponsor staking contracts, where staked $GYLP (liquidity tokens) will receive a share of yield.
Copyrights GreenYield DAO LLC.
7. Governance
The GreenYield DAO is governed by its members, who are member equity holders and hold the $GYMember token. Members can participate in the governance process by proposing and voting on proposals that affect the DAO's operations and future direction. The DAO runs an Aragon DAO instance for its governance process to ensure transparency and fairness in the governance process. Governance is specified in the GreenYield DAO Charter.
Copyrights GreenYield DAO LLC.
8. Roadmap
The GreenYield DAO has a roadmap that outlines the key milestones for the project's development and growth. The roadmap includes plans for expanding the DAOs renewable energy infrastructure, developing partnerships with other organisations, and launching new initiatives to promote the adoption of renewable energy.
A revised Roadmap will be maintained on the GreenYield DAO website.
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9. Team
The GreenYield DAO is a member-owned and managed organisation and attracts advisors who are experienced professionals with a passion for sustainability and blockchain technology. The contributors have a proven track record in developing and managing successful projects in renewable energy and DeFi.
Copyrights GreenYield DAO LLC.
10. Community and Marketing
The DAO Charter will allow allocations of the DAOs treasury towards promotion activities, which may include listing fees, paid promotions, and community management of the DAOs channels, up to but not exceeding the share (in pct.) of tokens dedicated to such activities. The DAO will seek partnerships and other promotion channels with relevant influencer profiles ect. around Impact/Green offset.
Copyrights GreenYield DAO LLC.
11. Disclaimer and Legal Notices
GreenYield DAO LLC, is a member owned and governed limited liability company (the “Company”) incorporated under the laws and regulations of the Republic of the Marshall Islands pursuant to the Limited Liability Company Act of 1996 of the Republic of the Marshall Islands (as amended from time to time, the “Act”) and the Marshall Islands DAO Entities (Amendment) Act of 2021 (as amended from time to time), act according with the laws of the Marshall Islands.
Due to GreenYield DAO LLC being organised as a limited liability entity, no Member shall be liable as such for the liabilities of GreenYield DAO. The failure of GreenYield DAO to observe any formalities or requirements relating to the exercise of its powers
or management of its business or affairs shall not be grounds for imposing personal liability on the Members, Directors, or others acting with fiduciary powers for liabilities of GreenYield DAO LLC.
Participation in GreenYield DAO and its tokenized utility ecosystem, the $GreenYield token, isn’t a regulated securities offering, and anyone not familiar with or allowed to (in their local legal and regulatory environment) hold, trade, or similar are not allowed to hold, trade, or similar the $GreenYield utility token.
The Marshall islands regulation specifically state that a DAO issuing tokens for it’s own ecosystem is not to be considered a VASP, and GreenYield DAO LLC is thus not registed as one.1 Since GreenYield DAO purely operates in digital currencies, it’s also not required to register as a financial service provider or an electronic money institute.
GreenYield Members (via “paper” og represented by the $GYMember token) may choose if they prefer digital “paper” based member certificates or the tokenized version, but acknowledge that participation in the DAO governance is restricted to those holding $GYMember tokens. The GreenYield DAO is a for-profit member owned LLC, and is a Marshall Is. taxed entity as detailed in the following.
As a “for profit” DAO LLC, GreenYield DAO LLC, is subject to the Marshall Islands gross revenue taxation, currently 3% on topline revenue, however it’s not applied to capital gains, dividends or return on invested capital. For Members there’s pass-thru taxation with no Marshall Islands witholding obligation towards GreenYield DAO LLC. Members are encouraged to consult their local tax advisor. Member tax payments may be submitted to the locally appointed agent representative (external to GreenYield DAO LLC) in most popular cryptocurrencies. The GreenYield Foundation DAO LLC is a non-profit and thus not subject to Marshall Islands taxation.
Marketing of GreenYield DAO or $GreenYield and its various other offerings does not constitute solicitation of a financial investment or participation in a securities offering. GreenYield will work with regulated third parties to represent the ecosystem tokens compliantly in relevant jurisdictions.
1 Banking Act 1987 (RMI), Chapter 1, §102(ii)
GreenYield will establish a EU presence to issue the $GreenYield utility token compliantly under the MiCAr regulation for crypto assets via a CASP regulated entity.
The $GYLP token when minted represent a tokenized lending contract with fixed interest, retulated under the EU DLT Sandbox via a third party fully regulated partner. Initially $GYLP tokens will not be transferrable in order to avoid a secondaries market situation. This may evolve as regulatory compliance can be achieved.
The $GYMember tokens are to be considered equivalent to a financial securities asset issued under Marshall is. regulation. Holders will be required to pass KYC/KYB. Holding of the tokenized membership by users in jurisdictions where holding such tokenized assets would require domestic (in the holders country) regulatory compliance are to refrain from holding the tokenized membership, but can simply hold the “paper” (digital) membership.
The Greenyield.org website will offer users easy interaction with the smart contracts via an open-source web-frontend provided “as is” and therefore GreenYield DAO or any of it’s subsidiaries are not intermediary to any user interaction between non custodial wallets and the smart contracts. Where relvant, users will be required to complete KYC/AML to be allowed to connect with some of the services offered on the GreenYield.org website – but as mentioned – interaction with the smart contracts does not involve GreenYield DAO LLC or its subsidiaries.
GreenYield encourages all who are considering doing transactions related to GreenYield to get solid advice related to all Legal, Compliance, and Commercial effects and restrictions. It is highlighted that GreenYield does not issue any guarantees on the performance of the DAO or any token, service, or product. Participation in GreenYield DAO, as a Member, doesn’t grant anyone the right to claim direct ownership of a share of the DAO-owned assets, and the DAO explicitly states that any trading of $GreenYield isn’t guaranteed. The DAO may from time to time and based on member Governance, decide to offer token buybacks from the market.
Additionally, the DAO members must be aware of the general risks posed. This may include, but isn’t limited to, physical assets e.g., solar panels and cables, etc. which may be exposed to natural forces outside the control of the organisation, third party
attacks on the DAOs treasury and other assets etc. Members of the DAO acting with fiduciary powers granted by the DAO can not be made personally liable for their actions and are permitted to refuse to execute DAO governance decisions known to be in violation of the DAO charter or any other legal regulation.
Copyrights GreenYield DAO LLC.
