Long-term Planning and Risk Management

Native values the careful allocation of funds to build lasting value for communities. To incentivize long-term ecosystem protection, Native commits 10% of project revenue to an investment fund for the community. This fund will invest in sustainable projects to support long-term economic and environmental health and will provide a sustainable financial resource for future generations to continue conservation efforts long after the project is initiated. Native will also invest a further 10% of project revenue into an Insurance Fund which will cover any unexpected risks or emergencies during stewardship activities.

Both funds ultimately belong to the community, unless there is a clear case of malpractice or negligence. Furthermore Squares within a given project will be sold according to a curve which matches the financial needs of the community. These two measures perform a few important functions:

  • In the event of malpractice or negligence on behalf of the Project Owner the fund will be used to compensate holders with replacement Squares.
  • In the event of degradation due to Force Majeure (hurricane, forest fires, etc.) the fund will be used to fund the regeneration of that Square e.g. replanting, regeneration etc.
  • By selling gradually we do not overload communities with huge one-off payments, yet nor do we hold money back which is not ours.
  • Gradual selling offers a hedge against price fluctuations so that communities do not sell off all their NbS for one price at one time.