Ecosystem-Based Economic Trade-Offs

NFTree seeks to make conservation economically competitive by increasing the opportunity cost of forest conversion. The model redirects resources toward conservation by integrating blockchain, MRV systems, and community incentives, channeling funds into a fiduciary trust. These funds are allocated based on territorial prioritization and community governance mechanisms that value the ecological function of native forests. Through this, NFTree offers an ecosystem-based alternative to traditional productive models such as extensive cattle ranching or extractive activities.

NFTree provides economic alternatives that make conservation viable and attractive. By assigning a financial value to conservation through tokenization and connecting it to real ecosystem services (e.g., carbon sequestration, biodiversity), the model enables a shift in local economic logic. Funds from NFT sales are funneled into a fiduciary trust and redistributed through community-designed conservation agreements. These agreements consider the ecological integrity of each territory and are managed collectively. As a result, economic activities shift away from degradation and toward ecosystem service provision, strengthening long-term sustainability and local resilience.

  • Integration of ecological, social, and governance dimensions in conservation finance
  • Territorial prioritization based on conservation value and risk of deforestation
  • Financial trust structures to ensure transparency and equitable fund use
  • Local validation of conservation agreements tailored to each territory’s dynamics

 

  • Financial incentives are most effective when aligned with local priorities and governance
  • Community involvement from early stages increases legitimacy and impact
  • Economic models must be flexible to adapt to the heterogeneity of territories and stakeholders
  • Continuous MRV is essential to maintain confidence and ensure long-term viability

 

Digital Monitoring, Reporting, and Verification (MRV) System

NFTree deploys a robust Digital MRV system that combines satellite imagery, drone-based observation, artificial intelligence (AI), and community-sourced data to measure carbon stocks, forest productivity, and biodiversity. The system processes spatial and biophysical data using tools like Google Earth Engine and machine learning models to detect forest changes at high resolution. Community-based monitoring complements technological inputs to validate and enrich ecological datasets. This multi-source approach ensures transparent reporting, boosts credibility with buyers and donors, and enhances local engagement in conservation efforts .

  • High-resolution satellite and drone imagery, accessible through platforms like Google Earth Engine.
  • AI models co-developed with academic and technical partners.
  • Consistent local ground-truthing efforts.
  • Digital infrastructure for data storage, visualization, and public access via platforms like nftree.com.ec.

 

  • Combining remote sensing with local monitoring increases accuracy and community trust.
  • AI models require region-specific calibration and ongoing validation.
  • Transparency and access to MRV data empower communities and improve funder confidence.
  • Training for local actors is key to sustaining long-term monitoring efforts.

 

Blockchain-based Conservation Tokens

NFTree tokenizes plots of 10x10 meters within conservation areas, using blockchain technology to create unique digital assets that represent ecological value, including carbon and biodiversity indicators. These NFTs are embedded with monitoring data generated by the dMRV system and are linked to geo-referenced locations. Each NFT is assigned a traceable identifier and linked to the DAO governance model, which regulates the reinvestment of funds. The proceeds from the purchase of NFTrees are allocated through a fiduciary fund to support the management and restoration of priority areas defined by the DAO statutes.

  • Availability of high-resolution geospatial data and MRV systems
  • Smart contract infrastructure on blockchain (Polygon, Cosmos)
  • Established governance structure (DAO statutes)
  • Legal and fiduciary framework for fund administration

 

  • Transparency in how tokens are defined and sold is key to user trust
  • Combining scientific modeling with blockchain improves integrity
  • Co-design with local actors ensures acceptance of tokenized units
  • A legal trust ensures transparent fund allocation aligned with conservation goals

 

Decentralized Local Governance via DAOs

NFTree promotes the formation of decentralized autonomous organizations (DAOs) that operate as governance bodies co-designed with landowners and local actors. These DAOs are formalized through statutes that outline voting rights, membership, responsibilities, and procedures for fund allocation and monitoring. In places like Guayabillas, the DAO is adapted to local contexts and integrates with existing instruments such as community meetings. These governance structures enable transparency, local prioritization of conservation areas, and collective oversight of restoration and MRV efforts. NFTree incorporates digital tools to manage the DAO on-chain, while also maintaining analog mechanisms when needed due to technological constraints.

  • Collective drafting and validation of DAO statutes with landowners and community stakeholders
  • Local capacity-building workshops and onboarding sessions
  • Integration of customary governance and ecological priorities
  • Use of open-source platforms like Aragon for DAO governance
  • Alignment with local conservation planning (e.g., management plans)

 

  • Participatory governance processes strengthen trust and long-term commitment
  • Co-design of statutes enhances local legitimacy and clarity on rights and roles
  • Hybrid digital-offline governance models improve accessibility and inclusion
  • Transparent, consensus-based fund allocation boosts engagement and accountability

 

 

Committee establishment, formalization and operationalization

Inclusive and participatory mapping of all stakeholders in the mangrove space in the five counties of Kwale, Mombasa, Kilifi, Tana River and Lamu. A series of meetings for sensitization on the National Mangrove Management Plan, and later facilitated formation of the national and five county committees. The committees were then facilitated in developing their workplans and executing some of the activities. This has since been picked up. 

Partnership and collaboration.

Inclusive processes

Willingness and trust amongst partners 

Strengthening Oversight by the Authorized Association and Board of Trustees

This building block strengthened governance by enhancing the oversight capacity of MBOMIPA WMA’s Authorized Association (AA) and Board of Trustees through structured peer-learning and institutional reforms. A 5-day exchange visit to Randilen WMA (that has been considered as one of economically viable WMA in the Northern Tanzania being valued by their constituent communities) enabled 21 WMA leaders to adopt proven practices, including clear role separation (Board/AA/Management), financial oversight tools (Ministry of Natural Resources and Tourism Portal, invoicing systems), and community engagement strategies (equitable benefit-sharing and conflict resolution). Post-visit evaluation revealed 92.5% of leaders demonstrated improved governance knowledge and 85% noted enhanced transparency. Key outcomes included a development of MBOMIPA WMA Board Constitution and a 25% revenue increase from new tourism investments ensuring accountable management and aligned conservation-community goals.

  1. Regular support and facilitation by Iringa District Council, STEP, and other conservation partners.
  2. Availability of peer-learning opportunities with other WMAs that have successfully implemented similar governance structures.
  3. Engagement of local leaders and community representatives to ensure alignment with community needs and expectations.
  1. Clear separation of roles and responsibilities between management and oversight bodies enhances governance efficiency.
  2. Regular communication and collaborative decision-making between the management team, AA, and Board of Trustees build community trust and improve transparency.
  3. Continuous capacity-building and leadership development are essential for maintaining effective oversight and adapting to emerging challenges.
Professional Management Recruitment and Training

This building block focused on recruiting and training a professional management team (initially the General Secretary and Accountant) for MBOMIPA WMA to enhance its operational efficiency. The team comprises individuals with expertise in conservation, financial management, and community engagement, ensuring a holistic approach to managing the WMA. Soon after recruitment, six weeks of the onboarding commenced with the training sessions conducted on governance best practices, financial reporting using QuickBooks, and other resources such as human and assets management. These trainings equipped the management team to handle day-to-day operations, engage with stakeholders effectively, and ensure sustainable management of natural resources. The professional team was tasked with coordinating patrols, managing budgets, and improving the overall governance of the WMA.

  1. Collaboration with other organizations: Support from STEP, Tanzania TAWA, and Honeyguide Foundation in recruitment, coaching, and training. 
  2. Availability of local and international trainers with expertise in conservation and financial management.
  3. Local communities’ collaboration: Collaboration with local communities for identifying suitable candidates who understand the landscape and community needs.
  1. Recruiting professionals with diverse skill sets significantly improves operational efficiency and builds stakeholder confidence.
  2. Continuous training and mentorship are crucial to maintaining high performance and adapting to new challenges.
  3. Integrating conservation technologies and financial tools enhances transparency, data-driven decision-making, and resource management.
Community Engagement in Conservation Efforts

MBOMIPA WMA engages communities in decision-making and alert systems.The community is responsible for electing the board members and engaging in making decisions on management of the WMA. The community is also responsible for providing information to VGS on elephant presence in their farms or when elephants have moved out from WMA, heading to the village land or farms. They normally contact VGS directly through phones, or report to the village chairperson so that he/she can report to the MBOMIPA HWC Response Unit. The Response Unit then responds towards local farmers' alerts. This has strengthened local participation in conservation efforts and fostered trust and shared responsibility between the WMA and local villagers.  

Key conditions enabling community engagement in conservation include:
1.    Transparent communication channels and community involvement in decision-making. The WMA management team shares quarterly reports with village members on achievements, challenges, and income utilization, discussed during village assemblies to promote transparency. Other communication methods include workshops, assemblies, and materials like posters and booklets. 
2.    Community members actively participate in decision-making regarding income use and elect the management board, fostering ownership. 
3.    Additionally, 50% of WMA income is shared among member villages, enhancing social services and motivating conservation efforts. 
4.    The annual MBOMIPA Cup provides education on sustainable resource use and wildlife conservation.

Involving local communities is essential for successful management of the WMA, especially in mitigating HWC. The MBOMIPA HWC Response unit has been able to successfully manage most of the HEC incidents in Pawaga Division due to community support in providing information on elephant presence in crop fields and routes that elephants use into village land. This has also improved the relationship between farmers and the WMA.

Community Alert System

The three-tier community alert system enables rapid reporting of HEC through established communication channels. Farmers immediately contact VGS via dedicated phones when elephants approach farmlands, while village chairs serve as secondary contacts to verify and escalate critical incidents. This decentralized structure ensures 24/7 coverage across member villages, with response prioritization based on crop vulnerability and elephant herd size. The system incorporates community feedback loops, where farmers receive call for confirmations of Response Unit coming and after incident resolution farmers discuss the incident with the Unit, building trust in conservation efforts.

Key conditions enabling  success for community alert system include: 

  1. Pre-existing mobile network coverage in villages
  2. Annual community training on alert protocols (conducted in Swahili) during MBOMIPA Cup, communication material, and meeting with WMA
  3. WMA - Community collaboration

Involving local communities is essential for successful management of the WMA, especially in mitigating HWC. The MBOMIPA HWC Response unit has been able to successfully manage most of the HEC incidents in Pawaga Division due to community support in providing information on elephant presence in crop fields and routes that elephants use into village land. This has also improved the relationship between farmers and the WMA. Community like the alert system as it does not to bypass bureaucratic channels.

Human Wildlife Conflict Response Unit Training

STEP and Honeyguide Foundation facilitated training at MBOMIPA WMA to equip 12 VGS (40% women) + 2 drivers with effective techniques for safeguarding community farms from elephant damage. The training equipped Scouts with knowledge on elephant behavior and how to use the HEC toolkit (torches, horns, chili crackers, and roman candles) to push elephants away from farms. Participants also learned techniques for safely relocating elephants based on their behavior and group composition (namely, whether they were all-male, all-female, or mixed groups). Refresher trainings have been regularly provided to the team to ensure safety.

Key conditions enabling success of the training include:

  • Support from expert trainers: Experts from Honeyguide foundation facilitated the training achievement, as they had knowledge on the use of HEC toolkit and elephant behavior.
  • A dedicated HWC Response Unit: Readiness of the response team to learn and enhance their capacity at handling HEC contributed to the achievement of the training provided to them. 
  • Access to fund: Availability of fund for the training and learning materials such as deterrent tools
     

The training and tools provided to the HWC Response Unit played a great role in the successful management of the reported HEC incidents in Pawaga Division. The training equipped the Unit with knowledge of elephant behavior as well as the logic behind elephant deterrents and sequential use of the toolkit. This enhanced the ability of the team to respond to HEC incidents in an effective and safe manner.