ESG (Environmental, Social, and Governance) regulations for crypto assets aim to address their environmental impact (e.g., energy-intensive mining), promote transparency, and ensure ethical governance practices to align the crypto industry with broader sustainability and societal goals. These regulations encourage compliance with standards that mitigate risks and foster trust in digital assets.
Name | Coinmotion Oy |
Relevant legal entity identifier | 743700PZG5RRF7SA4Q58 |
Name of the crypto-asset | NEM |
Consensus Mechanism | NEM utilizes a unique Proof of Importance (PoI) consensus mechanism, which rewards not only token holdings but also network engagement. Core Components of NEM’s Consensus: 1. Proof of Importance (PoI): Importance Score Calculation: NEM’s PoI model determines eligibility for block creation based on an Importance Score. This score is influenced by three factors: XEM Holdings: The amount of XEM tokens held in the account. Transaction Activity: Frequency and volume of transactions, rewarding users who actively participate in the network. Network Engagement: Overall activity within the ecosystem, which encourages ongoing network use beyond passive holding. 2. Incentivized Network Activity: Encouraging Active Participation: By factoring transaction frequency and network activity into block validation eligibility, NEM’s PoI model incentivizes users to engage regularly with the ecosystem, promoting a more dynamic and interactive network. |
Incentive Mechanisms and Applicable Fees | NEM’s incentive system rewards harvesters with transaction fees, relying on active participation and fee-based rewards. Incentive Mechanisms: 1. Transaction Fees for Harvesters: Earning from Transaction Fees: Harvesters, who validate and add transactions to blocks, earn rewards solely through transaction fees. NEM does not issue new XEM tokens as block rewards, relying instead on network transaction fees to incentivize participation. 2. Fixed Token Supply: Non-Inflationary Model: With a fixed supply of XEM tokens, NEM avoids inflationary rewards. Instead, the PoI consensus model uses transaction fees as the sole reward mechanism, ensuring that token value is not diluted over time. Applicable Fees: • Transaction Fees in XEM: Users pay transaction fees in the native token, XEM. Standard transactions have fixed fees, while specialized transactions (such as smart assets) may have varying fees. |
Beginning of the period | 2024-06-09 |
End of the period | 2025-06-09 |
Energy consumption | 38106.00000 (kWh/a) |
Energy consumption resources and methodologies | For the calculation of energy consumptions, the so called “bottom-up” approach is being used. The nodes are considered to be the central factor for the energy consumption of the network. These assumptions are made on the basis of empirical findings through the use of public information sites, open-source crawlers and crawlers developed in-house. The main determinants for estimating the hardware used within the network are the requirements for operating the client software. The energy consumption of the hardware devices was measured in certified test laboratories. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. |
Renewable energy consumption | |
Energy intensity | (kWh) |
Scope 1 DLT GHG emissions - Controlled | (tCO2e/a) |
Scope 2 DLT GHG emissions - Purchased | (tCO2e/a) |
GHG intensity | (kgCO2e) |
Key energy sources and methodologies | |
Key GHG sources and methodologies | |