LEAPFROG - Direct payments for profitable solutions
Make conditional cross-border payments directly to unbanked suppliers in seconds. Know exactly where money is going, when, and why
Leapfrog
is a payments and monitoring platform that leverages blockchain (MiCA compliant stable coins) to make fast, direct, conditional and transparent payments to both unbanked and banked users in local currencies.
Every payment to an individual or group is linked to a specific task allowing for granular real-time dynamic reporting. Conditional payments are driven by ‘smart contracts’, make this possible. By linking every payment to a specific task or result, operational execution (and risks) can be tracked minutely and in real time. Like escrow accounts, smart contracts release payments when certain conditions are met – for example, if a tree is successfully planted, a geolocated photograph is uploaded to the platform as a proof that releases payment. The main users - investors (e.g. entities that pay for forest restoration) and forest stewards (e.g. IPLCs) - benefit from significant increases in efficiency and transparency.
Conversely, multiple signatories to a smart contract can raise flags and suspend payments if fraud is suspected – crucial for large sums. Sapele encodes grievance and whistleblowing mechanisms into its very structure. This is vastly different from current M&E and auditing approaches, which lag far behind project execution.
Our theory of change is IF investors use Leapfrog to compensate stewards and monitor progress and IF payments incentivise both individual and communal action in the immediate and long-term, THEN pro-forest incentives will become more competitive with deforestation incentives RESULTING in significant improvements in forest governance at scale RESULTING in further investments in forests governance to create a positive feedback loop.
Leapfrog makes corruption more difficult, while strengthening incentives among IPLCs, buyers and investors to support forest governance. It can, for example, be used as an opportunity to work alongside the mining sector to deliver improved income for IPLCs and forest management.
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An innovative concept matured and refined on the basis of several pilot field projects, including our Charcoal Project in Ivory Coast
Charcoal production is a major driver of deforestation throughout sub-Saharan Africa. REM t/a Gaiachain implemented a pilot project with Malebi, a women's association in Ivory Coast dedicated to the production of sustainable charcoal.
Blockchain has already proven effective in building more trustworthy supply chains for a variety of goods ranging from wine to pharmaceuticals. However, it has yet to be applied to traceability of ethical commodities which continue to rely on centralised systems that are expensive, inflexible, and subject to fraud. We tested the feasibility of applying blockchain to traceability in West Africa, using its additional experience of fraud and drivers of deforestation in producing countries to complement the technology.
Executive summary of the project, 2021
Blockchain technology for good charcoal governance in Ivory Coast (pdf FR)