What is regenerative finance (ReFi) and how can it affect NFTs and Web3?

On September 30, NFT Steez, a biweekly Twitter Spaces host by Alyssa Expósito and Ray Salmond, Mashiat met Mutmainnah to discuss how regenerative finance (ReFi) can provide more accessibility and inclusion to blockchain technology.

As a “mission-driven movement”, Mutmainnah explains that ReFi enables users to redefine their relationship with the current financial system and their relationship with finance and wealth.

Currently, millions of people in many countries lack basic, fair access to the financial services that will allow them to meet their daily needs.

What if there were newer models that could sustainably alleviate this? According to Mutmainnah, ReFi can redefine what money means and how it is used.

What is the impact of ReFi?

Mutmainnah emphasized that ReFi brings awareness to how today’s financial systems operate in an “extractive” and “exploitative” manner. She also made a comparison to fast fashion by explaining that what enables a user to buy a shirt for $5 comes at the expense of a child laborer.

These “extractive” systems no longer work for people since a core of ReFi is fair availability and distribution.

Mutmainnah explained that ReFi is often seen as synonymous with climate, and although it is a pillar, ReFi has enabled “tangible and accessible use cases.” Users can “plug-in” and participate in models and systems that can increase their overall prosperity and the prosperity of the ecosystem.

Therefore, ReFi can be considered a way to triangulate elements of sustainability by “stabilizing” the climate and “biodiversity”, while maintaining equitable access in global societies. This has the potential to create new economic models and systems that can increase prosperity.

As Mutmainnah puts it:

“ReFi helps people change the way they relate to money.”

Related: NFT Steez and Lukso co-founders explore implications of digital self-sovereignty in Web3

Can Web3 and NFTs be used for social and public good?

When asked if NFTs could be used for social and public good, Mutmainnah referred to a pilot program involving a “loyalty NFT reward program.” Similar to Starbucks’ recent NFT loyalty program, Mutmainnah explained how a similar scheme could provide positive and sustainable benefits.

For example, imagine buying an NFT that can give the holder one free coffee for 10 days. In these models, NFTs can provide more economically feasible benefits than purchasing the item, while increasing awareness of the item or service.

Contrary to the hype and speculation circulating NFTs in 2021, more creators and platforms are expanding and exploring practical use cases from peer-to-peer and peer-to-business initiatives.

However, that doesn’t mean adoption comes easily. According to Mutmainnah, beyond NFTs, there are many “infrastructure pieces” to explore, including building out more dynamic products that enable this.

Mutmainnah explained that there is a kind of dance between “making a product frictionless” for seamless adoption and empowering the user to be an “advanced” user who takes full “ownership of their assets.”

To hear more from the conversation, tune in come in and listen to the whole episode by NFT Steez and be sure to mark your calendar for the next episode on October 7th at 12:00 PM EST.