BitMEX purchased $100,000 price of carbon credit, representing 7,110 metric tons of carbon dioxide emissions, sufficient to offset its bitcoin carbon footprint for the subsequent yr, the crypto trade mentioned in a blog post.
- The credit will match the environmental footprint from each its bitcoin transactions and the servers powering the trade, making it the primary crypto trade to change into totally carbon impartial, BitMEX mentioned in the put up.
- BitMEX revealed the reasoning behind the conclusion in a separate post. The finest means to method carbon emissions for crypto exchanges is to determine “how much electricity usage is incentivised per US dollar spent on transaction fees,” after which calculate the carbon emissions based mostly on that, it mentioned.
- The “imperfect method” the trade used then was to evaluate the typical electrical energy price in kilowatt hours for bitcoin mining with the worldwide common price per kWh of electrical energy.
- Based on international costs, it discovered that each $1 spent on transaction charges might “incentivize” up to 7.4 kWh of “typical electricity usage,” which in flip means each $1 spent on bitcoin transaction charges incentivizes 1 kilogram of CO2 emissions.
- This methodology ought to amend one proposed by FTX founder and CEO Sam Bankman-Fried in a May tweet, BitMEX mentioned.