Nfts
NFT auction raises $6,000 for tiger conservation
Can NFT exchanges be a sustainable source of funds for conservation?
Yangyel Lhaden
A first in Bhutan: the digital artwork titled “Tiger in the Snow” was auctioned on the blockchain for 1.889 Ether (ETH), which is equivalent to approximately USD 6,000.
ETH is the cryptocurrency of the Ethereum blockchain, used to pay for transactions, computing services, and smart contracts within the network.
The artwork ‘Tiger in the Snow’, a watercolour created by a senior artist of VAST Bhutan, is inspired by a real tiger captured on camera during the Second National Tiger Survey 2022-23.
The painting depicts a tiger in the snow with the iconic Taktsang Monastery in the background. The work symbolises the shift of the tiger’s habitat to higher altitudes, likely due to climate change and human activities.
The sale of the digital collectible took place during the tiger art auction and exhibition at the Sustainable Finance for Tiger Landscape (SFTL) conference, held in Paro from April 22-23 this year to raise $1 billion in funds for tiger conservation.
A digital collectible is a unique and rare digital asset traded on blockchain platforms in the form of non-fungible tokens (NFTs), valued by collectors. An NFT is a unique digital asset that represents ownership or proof of authenticity of a specific item or content.
The digital artwork was minted – the process of creating an NFT on the Ethereum blockchain – on OpenSea, a decentralized marketplace for buying, selling, and trading NFTs and digital assets. Druk Holding and Investments provided technical support to convert the artwork into an NFT and register it on OpenSea.
The process of creating and listing the digital artwork on OpenSea cost approximately $400. Each time the digital collectible is resold on OpenSea, the original creator also receives a royalty of five to ten percent. The royalty on the sale of the digital artwork “Tiger in the Snow” will be split between the Department of Forestry and Parks and the artist in a ratio of 60:40.
The art auction, including the sale of NFTs, at SFTL raised Nu 737,644 for tiger conservation. The auction was organized by conservation organizations including Bhutan for Life, Bhutan Trust Fund for Environmental Conservation, Royal Society for Protection of Nature, Bhutan Foundation and WWF Bhutan.
NFTs are gaining popularity globally to raise funds for conservation through digital art collectibles. For example, The Ocean Foundation launched “CryptoCorals” to fund coral reef restoration, and Rainforest Foundation US auctioned NFTs for rainforest conservation projects.
“Given the price of digital art sold at the recent Tiger Conference, NFTs hold promise for raising funds for conservation,” said Kuenzang Tobgay of Bhutan For Life.
However, he highlighted the current sustainability risks in blockchain trading, pointing to the carbon footprint due to high electricity consumption due to large computing needs. He said some studies suggest that the electricity consumed outweighs the benefits of NFT trading.
“As a global biodiversity hotspot, Bhutan could create exotic species like tigers, snow leopards, golden langurs, black-necked cranes, white-bellied herons and many others on NFT platforms to fund conservation initiatives. But a thorough study needs to be done before venturing further into NFTs,” Kuenzang Tobgay said.