PHAETON IS BUILDING ESG INFRASTRUCTURE FOR A GREENER BLOCKCHAIN

Since a mysterious author Satoshi Nakamoto published the paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008, the blockchain and cryptocurrency world has been rising. Following the footsteps of Bitcoin, over the last decade 1,000 different cryptocurrencies have been created. However, this exponential growth is causing a significant energy and carbon challenge. For example, Bitcoin mining uses as much electricity as a medium-sized country and has a carbon footprint comparable to that of New Zealand, producing 36.95 megatons of CO2. Additionally, other cryptocurrencies consume more electricity than the entire annual energy consumption of the Netherlands, according to researchers at Cambridge University.

Furthermore, data centres and transmission networks powered by fossil fuels account for about 2% of global energy consumption, according to the International Energy Agency (IEA). As demand rises, especially from mobile networks, electricity usage and carbon emissions will also increase unless there are improvements. By 2023, modest efficiency gains from data networks will result in a 10% increase in electricity usage compared to 2020, generating around 10 million additional tons of carbon emissions.

In recognising these problems, Phaeton has developed a solution. While most blockchain enterprises focus on cryptocurrency and digital models such as NFTs, Defi, Metaverse and more, Phaeton is building an ESG Infrastructure Ecosystem addressing the energy and carbon challenges facing the blockchain industry. The company is rolling out three of its primary ESG business silos, namely:

1. Phaeton Data Centres

2. Phaeton Energy

3. Phaeton Smarter Communities

THE ESG INFRASTRUCTURE ECOSYSTEM

These selected silos are three core businesses that make up Phaeton’s ESG Infrastructure Ecosystem. Although they are separate operating entities, they have a strong connection as they rely upon the support services of each other, creating an integrated financial model. Below is a further explanation.

Phaeton Data Centres (PDC)

At the head of the infrastructure, the core is Phaeton Data Centres. These data centres are modular in design and factory manufactured for faster deployment in multiple international locations. Income is derived from renting storage space, networking services, platform as a service, software as a service and staking nodes. In working with the other silos:

• PDCs are powered by Phaeton Energy’s renewable energy, mainly solar farms.
• To make Phaeton the most decentralised blockchain network, PDC requires Phaeton Energy and Phaeton Smarter Communities to deploy and grow its network. A Data Centre is included for every new solar farm or new real estate development.
• When incorporated into its sister silos projects, PDC will share a percentage of its income as a form of rental payment.

Phaeton Energy (PE)

Phaeton Energy focuses on investing and developing micro-grid solar farms with battery storage in regional locations. While the focus is on solar power, it will also work with wind power and, to some degree, hydrogen power. The revenue streams of PE are many, including carbon credit trading, the sale of energy to the primary grid, and behind-the-meter energy sales. In addition, PE works with the sister silos by way of:

• Provide renewal energy and battery back-up to PDC. While it will charge for the power it provides, this will be offset against an agreed income from PDC.
• Provide advisory services in installing a solar array and operations management to Phaeton Smarter Community Development projects.

Phaeton Smarter Communities (PSC)

Phaeton aims to change the paradigm of housing developments by demonstrating how Blockchain Technology is incorporated in real-life situations. PSC is a new generation of housing that includes the latest digital and construction technology. These projects are underpinned by Phaeton Blockchain Technology, creating an innovative and sustainable living for all. The PSC revenue streams are typical of real estate investment in rental leases and sales. PSC is working with the other silos by way of:

• Work with other real estate developers to increase the delivery of more data centres for PDC, creating a varied and more extensive decentralised blockchain network.
• Share additional income stream with PE, selling excess power to the primary grid, and a percentage share of PDC’s revenue. These extra income streams increase the yield of new developments, increasing their chances of securing funding from lending institutions.

REAL VALUE AND CAPITAL GROWTH

Historically, investment in infrastructure and real estate have always been popular as they retain their value and provide long term capital growth. All three Phaeton silos fall into this asset sector.

• Data centres are highly sought after as investments due to their high occupancy rates, and companies have been adding new supply across the world to meet an ever-increasing demand.
• Renewable energy is an asset sought by many institutional investors. They see these as valuable assets in the future and are willing to buy them with capitalisation rates as low as 4%.
• It is known that house prices double every ten years in Australia. Developing and renting property has made many investors wealthy.

Phaeton is dedicated to delivering these assets and building value for its shareholders and token holders with its unique financial modelling.

For further information, please get in touch with the team: hello@phaeton.io