Community-Inclusive Conservation Incentives

NFTree’s conservation incentives model is built around community-led agreements that recognize and reward local ecosystem services. The conservation agreements define the restoration or conservation activities to be carried out and the criteria for incentive disbursement. By channeling resources directly to land stewards—especially in high-biodiversity zones—this mechanism ensures both the economic viability and ecological integrity of restoration efforts. The model also considers informal tenure arrangements and provides flexibility to include diverse property types, addressing one of the key implementation barriers in fragmented landscapes. Incentives are distributed periodically based on verified ecological performance through the MRV system, fostering continuous engagement and accountability.

  • Transparent fiduciary trust and incentive governance mechanisms
  • Contextualized conservation agreements with smallholders
  • Flexibility to include informal or collective land tenure arrangements
  • Ongoing community support and monitoring mechanisms
  • Robust MRV system validating compliance

 

  • Early community involvement in agreement design strengthens ownership and compliance
  • Addressing tenure informality is essential for inclusive participation
  • Periodic and performance-based payments increase motivation and continuity
  • Trust and clarity in payment distribution processes are critical to avoid conflicts

 

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

 

 

Aerial view of Guayabillas community landscape, one of the pilot sites where NFTree’s DAO-based governance and conservation finance model is being implemented.
South America
Nicolas
Maldonado
Decentralized Local Governance via DAOs
Blockchain-based Conservation Tokens
Digital Monitoring, Reporting, and Verification (MRV) System
Community-Inclusive Conservation Incentives
Ecosystem-Based Economic Trade-Offs
Aerial view of Guayabillas community landscape, one of the pilot sites where NFTree’s DAO-based governance and conservation finance model is being implemented.
South America
Nicolas
Maldonado
Decentralized Local Governance via DAOs
Blockchain-based Conservation Tokens
Digital Monitoring, Reporting, and Verification (MRV) System
Community-Inclusive Conservation Incentives
Ecosystem-Based Economic Trade-Offs
Aerial view of Guayabillas community landscape, one of the pilot sites where NFTree’s DAO-based governance and conservation finance model is being implemented.
South America
Nicolas
Maldonado
Decentralized Local Governance via DAOs
Blockchain-based Conservation Tokens
Digital Monitoring, Reporting, and Verification (MRV) System
Community-Inclusive Conservation Incentives
Ecosystem-Based Economic Trade-Offs
Project implementation plan

Phase 1 - Foundation  

To lay the foundation for integrating I&T solutions into traditional wetland management, conduct a study to identify and prioritize suitable devices to be installed in appropriate locations for wetland monitoring by:  

  • Consulting wetland stakeholders  
  • Consulting innovation and technology sector  
  • Reviewing potential IoT applications that are particularly important to the management of MPNR  
  • Identifying and integrating relevant IoT solutions for gei wai operation and wetland research into MPNR without compromising existing management of MPNR  

  

Phase 2 – Deployment  

To monitor the wetland habitats of MPNR, the IoT system will be implemented by:  

  • Installing wireless sensors, LoRa gateway(s) and the supporting infrastructure in designated sites in MPNR  
  • Connecting all the wireless sensor applications to the cloud server and IoT user interface   
  • Setting thresholds for alert in the IoT system  

  

Phase 3 – Implementation and evaluation  

To demonstrate proof of concept of the capability of IoT system for wetland management with reference to actual contribution to Reserve management and potential use of data for ecological studies, the following will be done:  

  • Collecting data and alerts from IoT system deployed in MPNR  
  • Evaluating the performance and efficacy of the system in terms of   
  • field performance of the system,   
  • facilitation to management decision and   
  • novelty of the data for new research opportunities  

  

Phase 4 – Dissemination   

To promote the application of IoT to wetland management, the research project and experience learnt will be shared throughout the project by:  

  • Organizing webinars for conservation managers and wetland stakeholders  
  • Installing outdoor interpretation panels in MPNR  
  • Promoting through social media platform and media engagement  
  • Producing promotional video  
  • Publishing technical report of the project  
  • Organizing launching ceremony of the "Smart Wetland" IoT pilot system  
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Strengthening community engagement and expert knowledge

With our platform and tools, we not only provide opportunities to raise funds, simplify data collection for monitoring, and detect forest fires earlier to enable faster response, but also foster a sense of ownership for small grassroots projects tackling the globally critical issue of the climate crisis. Each project on our platform is encouraged to share its challenges and success stories with us and the broader community. This engagement happens through regular Community Talks or direct connections with other projects facing similar challenges, fostering meaningful discussions and facilitating valuable knowledge exchange at both local and regional levels.

Our project badges further enhance this sense of belonging, serving as both a symbol of community membership and an official seal of quality for potential supporters. Additionally, our free and confidential advisory service offers Restoration Organizations tailored guidance from our team of experts, empowering them to sustainably develop and improve their initiatives.

Active Community Engagement: Regular opportunities for interaction, such as Community Talks and peer connections, are essential for fostering collaboration, knowledge sharing, and mutual support among projects.

Training and Support: Providing training and ongoing technical support to project implementers ensures they can maximize the tools' capabilities and interpret the data effectively.

Recognition and Validation: Tools like project badges that serve as symbols of quality and credibility are important for both community morale and attracting potential supporters.

Tailored Advisory Support: Offering accessible, expert-driven, and confidential guidance ensures projects can address their unique challenges and make sustainable improvements.

Accessible Technology and Tools: User-friendly, reliable tools for fundraising, monitoring, and early detection of challenges like forest fires are vital for grassroots projects to operate effectively and achieve their goals.

Global yet Local Focus: Balancing global relevance with local impact ensures that both the broad climate crisis and specific regional needs are addressed comprehensively.

Key Lessons Learned

Community Engagement Builds Long-Term Value
Regular interactions through Community Talks and direct peer connections foster a strong sense of belonging and shared purpose. Projects benefit greatly from knowledge exchange, but these forums require consistent facilitation to ensure meaningful participation.

Recognition Drives Motivation and Credibility
Project badges act as an effective tool to recognize and validate project quality, boosting morale among implementers and instilling confidence in donors. However, the criteria for earning badges must be transparent and consistently applied to maintain trust.

Support Must Be Tailored and Accessible
Free advisory services have proven invaluable for projects facing diverse challenges, especially grassroots initiatives with limited resources. However, ensuring adequate capacity within the advisory team to meet growing demand remains critical.

Challenges and Aspects That Did Not Work

Inconsistent Participation in Community Engagement
Not all projects actively participate in discussions or share their experiences, limiting the potential for mutual learning. Encouraging broader involvement remains a challenge.

Balancing Standardization with Flexibility
While project badges and standards provide structure, some grassroots projects felt constrained by rigid criteria that didn’t fully account for local contexts. Introducing adaptability within guidelines has been key.

Advice for Replication

Foster Inclusive Communities
Actively encourage participation in knowledge-sharing initiatives by highlighting benefits and providing incentives for engagement, such as showcasing success stories.

Invest in Scalable Support Structures
Build a robust advisory team and implement scalable processes to accommodate the diverse needs of a growing project community.