Frequently Asked Questions

What is the Standing Forest Token (SFT)?

The Standing Forest Token is a digital asset that represents one verified hectare of standing primary tropical forest under protection. Each SFT is tied to a specific forest area and serves as proof that the forest is being actively conserved. SFTs are allocated to forest stewards (such as indigenous communities, conservation organizations, or private reserve owners) who can sell them to raise funds for conservation activities. These tokens can be traded on secondary markets, and each trade generates a royalty payment (2-5%) that flows back to the original forest protector.

What is the Annual Verification Token (AVT)?

The Annual Verification Token is minted each year for forests that pass annual monitoring and verification. Each AVT represents a bundle of verified ecosystem services from one hectare for one year, including both carbon sequestration and biodiversity conservation. AVTs are project-specific and non-fungible, meaning each one is unique to its forest and year. These tokens can be purchased by companies or individuals seeking to demonstrate environmental impact, and they can be retired to make verifiable ESG claims. The annual nature of AVTs creates ongoing revenue streams for forest stewards as long as their forests remain healthy and intact.

How many SFTs will be minted?

The maximum supply of tokens will always match the estimated number of hectares of primary tropical forest remaining worldwide. Updated forest cover models will be cited and used as a reference to maximum potential supply. Current estimates point at around 1 billion hectares of primary tropical forest left. The actual supply of SFTs will depend on the amount of forest forest protectors onboarding.

Where does the value come from? How is demand generated?

Value comes from multiple sources.

1. There is the ecological scarcity: fewer than 1 billion hectares of primary tropical forest remain globally, and the token supply is capped to match this reality.
2. SFTs function as scarce digital assets similar to other limited-supply tokens, potentially appreciating as more forests are tokenized and the remaining supply decreases.
3. The royalty mechanism creates ongoing value for stewards every time an SFT trades.
4. For AVTs, demand is generated by corporations needing verified carbon and biodiversity credits for ESG reporting, impact investors seeking measurable conservation outcomes, and the requirement that SFT holders who stake their tokens must purchase the associated AVTs annually to maintain their stake.

Why focus on primary tropical forests?

Primary tropical forests are irreplaceable biodiversity hotspots and critical carbon stores. Less than 1 billion hectares remain globally, and they are disappearing rapidly. Traditional carbon markets often exclude intact forests due to "additionality" barriers, leaving the communities protecting them without financial support. The SFT Project addresses this gap.

Is this another type of Carbon Credit?

No, an SFT is not a carbon credit. SFTs represent the underlying forest asset itself, while credits represent specific ecosystem services produced by that forest. An SFT is a long-term, tradable asset that represents one hectare of protected forest and generates ongoing royalties. It does not get "retired" or consumed. In contrast, carbon and biodiversity credits (bundled into AVTs in this system) represent annual performance and are retired when used to make environmental claims.

How is the SFT different from a carbon or biodiversity credit?

Traditional carbon credits typically focus only on carbon sequestration, require complex additionality proofs, and don't provide ongoing revenue streams to protectors beyond the initial credit sale. The SFT system differs in several key ways.

1. It uses a dual-token model where SFTs represent the asset itself and AVTs represent annual performance.
2. It eliminates barriers and rewards existing forest protection.
3. It bundles carbon and biodiversity credits together in AVTs, recognizing the full value of intact ecosystems.
4. The royalty mechanism ensures forest stewards benefit from every SFT transaction in perpetuity, not just the initial sale.
5. The system uses blockchain technology for transparent, immutable tracking that prevents double-counting.

It treats forests as long-term assets rather than short-term offset generators.

How can I get involved?

There are multiple ways to engage, whether you're a forest protector, investor, technology partner, or conservation advocate.

- Forest Stewards: Fill out the expression interest form to begin the process of pre-onboarding your forest.
- Investors: Sign up to our newsletter to be notified when SFT purchasing becomes available. Please fill out the expression of interest form if you would like to be part of the ceremonial token sales upon launch.
- Verifiers: Organizations with ecological monitoring expertise can apply to become approved verifiers through the platform's accreditation process.
- General Supporters: Sign up for our newsletter for updates! If you would like to contribute in any other way please fill out the expression of interest form.

If you would like to schedule a meeting with our team during COP30 in Belem, please reach out via whatsapp to +1-778-681-2328

Will anyone be able to buy Standing Forest Tokens?

Yes. Individuals, organizations, and companies will be able to purchase SFTs through the platform. Users will be able to buy tokens to hold and trade, or stake them to specific forest projects to create a direct partnership with those communities and gain access to their AVTs.

Do I need cryptocurrency experience to participate?

No prior cryptocurrency experience is required. The platform will be designed with user-friendly interfaces for both forest stewards and investors. While SFTs and AVTs use blockchain technology, the platform will provide:

- Simple onboarding processes with guided tutorials
- Standard wallet options with clear instructions
- Fiat currency on-ramps (ability to purchase with traditional money)
- Customer support for technical questions
- Mobile and web applications designed for non-technical users

What if I don't have formal land titles but have customary rights?

The system recognizes customary tenure where communities demonstrate historical stewardship, even without formal legal titles. The platform accommodates these situations through:

- Customary Tenure Recognition: Communities with documented traditional stewardship can participate
- Supported Legal Process: The platform partners with indigenous legal experts to help communities pursue formal recognition
- FPIC Requirements: Free, Prior, and Informed Consent processes ensure communities control their participation
- Regional Guidelines: A dedicated tenure taskforce develops region-specific approaches that bridge customary and legal systems
- Community Verification: Third-party validation from indigenous rights organizations and local advocacy groups

Can I participate if my forest is already in another carbon program?

Yes, you can participate even if you're in another carbon program.

SFTs are separate from carbon credits:
- SFTs represent the forest asset itself, not carbon credits
- You can mint SFTs regardless of your existing carbon program
- SFTs do not conflict with other credit systems

AVTs work differently based on your situation:
If you're actively selling carbon credits elsewhere:
- Your AVTs may be listed as "not available" OR
- AVTs can be issued with only the credits not yet sold (e.g., biodiversity credits only, while carbon credits remain with your existing program)

‍
If you have generated but unsold credits from an accredited protocol:
- Your project is fast-tracked for AVT minting
- When an AVT is sold, the platform purchases the underlying credit from your existing marketplace
- The transaction is recorded on-chain and the credit is marked as retired/unavailable
- This prevents double-counting across all registries

Bottom line: Existing carbon programs are not a barrier. The platform coordinates with accredited registries to maintain integrity and prevent double-counting.

When will SFT launch?

The SFT system is currently in development with pilot projects getting ready to mint tokens in Ecuador, Brazil, Congo and Indonesia. We are building partnerships, finalizing technical architecture, and engaging with forest protector communities. We will be at COP30 in Belem, Brazil working on these partnerships. Join our mailing list for updates on platform launch and participation opportunities.

Who controls the platform and makes decisions about changes?

**Current Phase:**
The Biodiversity Finance Innovation Alliance maintains centralized control during initial development to establish the system and run pilot programs.

**Future Governance:**
The Alliance will establish itself as a DAO (Decentralized Autonomous Organization) once the system is built. Token holders will vote on key decisions like protocol changes, new projects, and fund allocation. Forest protectors and indigenous communities will have enhanced voting power to ensure those protecting forests have a strong voice in governance. All decisions will be recorded transparently on the blockchain.

What percentage of royalties goes to forest protectors?

Forest protectors receive 2-4% of each transaction with higher biodiversity forests earning higher royalties. A reserve of 1-2% of royalties is used for platform upkeep and the DAO managed community crisis fund. (e.g. supporting forest protectors who lost their forest to natural catastrophe).

Does owning an SFT give me any rights to the land?

No. Owning an SFT does not grant you any property rights, land ownership, or legal claims to the forest itself.

What you get:

- A digital asset representing one verified hectare of protected forest
- The ability to trade the token on secondary markets
- The option to stake your SFT to a specific forest parcel
- Access to purchase that forest's AVTs if you maintain your stake

What you don't get:

- Land ownership or property rights
- Physical access rights to the forest
- Decision-making authority over land use
- Claims on the forest's natural resources

The land remains under the full control and ownership of the forest steward. SFTs represent a financial instrument tied to conservation outcomes, not a real estate transaction.

How does the system address the risk of land grabs and ensure benefits reach local communities?

We are evaluating different mechanisms to address this very real risk. We are in consultation with various stakeholders to gather feedback. Please reach out if you would like to contribute to this discussion.

How will you handle land disputes?

How will you handle overlapping land use governance? (i.e. government + community)

How is forest integrity verified?

Independent third-party verifiers use digital monitoring, reporting, and verification (dMRV) combining satellite imagery, field surveys, and biodiversity assessments. Forests are verified annually, with all data recorded transparently on the blockchain. If a forest fails to meet standards, AVTs are reduced or withheld. All verification data is recorded on the blockchain to ensure transparency and prevent tampering. The system maintains a list of approved verifiers who must be impartial and credible.

What happens if the forest steward decides to sell their land? Or passes it on as an inheritance?

Land Sale:
The SFTs and associated conservation commitments transfer with the land:

- New landowner inherits the conservation obligations
- New landowner becomes the beneficiary of future royalties and AVT revenue
- SFTs remain valid and continue generating benefits
- Platform updates records to reflect new steward
- If new owner refuses conservation commitments, enforcement mechanisms may apply (potential freezing of AVT issuance or DAO governance intervention)

What happens if a forest hectare is lost due to a natural catastrophe (e.g., a forest fire)?

Your SFT is safe.

A key feature of the system is that SFTs are fungible (interchangeable), while the forest **hectares** are the unique, real-world assets.

Think of it this way: The world's protected forest is an Ancient Library*, and each hectare is a Living Book. Your SFT is a Stewardship Token, which gives you the right to "stake" it to a book and receive its annual wisdom (the AVT).

If a fire (a natural disaster) tragically destroys a "Living Book," here is what happens:

1. Your SFT is Unharmed: If your SFT was staked to that specific hectare, the stake is simply terminated, and the SFT is returned to your wallet. The SFT itself is not lost or burned.
2. The "Staking Slot" is Closed: That hectare is no longer available to be staked and will not produce any more AVTs while it is recovering.
3. The Protector is Supported: The protector is not penalized. Instead, the platform's community funds (like an insurance or crisis fund) are designed to help them in the regeneration effort.

You are free to take your SFT and stake it on any other healthy, available hectare in the "Library."

What happens if a forest hectare is lost due to a "bad actor" (willful deforestation)?

Your SFT is still safe, but the "bad actor" is severely penalized.

The outcome for you as an SFT holder is the same as a natural disaster: if your SFT was staked to that compromised hectare, your stake is terminated, and the SFT is returned to your wallet.

However, the consequences for the bad actor are immediate and permanent:

- Platform Expulsion: The protector is immediately cut off from the SFT platform.
- Benefits are "Slashed":They lose all rights to issue future AVTs and are removed from the royalty mechanism for every SFT their project minted.
- Project is Marked "Void": The entire project is publicly marked as "Void" or "Non-Compliant" on the registry, warning all participants.

This strict enforcement ensures that only good stewards are rewarded, and the integrity of the entire ecosystem is protected. Your SFT remains safe and can be staked on a project from a trusted, verified protector.

An Economy Built for Forest Protectors

How It Works

Standing Forest Token (SFT)

SFT provides market efficiency.

Annual Verification Token (AVT)

AVT provides verification integrity.

Process

Empowering Every Stakeholder

Protect & Mint

Invest & Stake

Verify & Certify

Purchase & Retire

The World's Standing Forests

About Us

Frequently Asked Questions

Contact Us