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 a community investment fund and 10% to an insurance fund. These funds provides a sustainable financial resource for future generations to continue conservation efforts long after the project is initiated.
These fund belongs 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 funds will be used to compensate holders with replacement Squares.
- In the event of degradation due to Force Majeure (hurricane, forest fires, etc.) the funds 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.