Part J: Information on the sustainability indicators in relation to adverse impact on the climate an

This whitepaper follows the draft technical standards specifying certain requirements of the Markets in Crypto Assets Regulation (MICA) as published in ESMA's Final Report from 3 July 2024

Adverse impacts on climate and other environment-related adverse impacts

Objective: The goal is to estimate the yearly energy consumption linked to the OCLT token, which is a key indicator required by the European regulation 2023/1114. This regulation provides guidelines on sustainability indicators for crypto-assets, focusing on adverse impacts on climate and the environment. The estimate will help ensure that the environmental impact of the OCLT token is properly understood and complies with relevant regulations. Methodology: The assessment involves three primary inputs: 1) Active Witnesses: Estimation of the average number of active witnesses for the two blockchain systems involved (Hive and Hive-Engine). 2) Power Consumption: A best effort estimate of the power consumption of typical Hive and HE nodes. 3) Percentage of OCLT Transactions: An estimate of the percentage of transactions related to the OCLT token if the project succeeds. Key Assumptions: Energy Consumption of Blockchain Systems: Both Hive (L1) and Hive-Engine (L2) are estimated to consume less than 300,000 kWh per year, which is below the threshold set by the EU regulations (500,000 kWh/year). OCLT Impact: In a scenario where the OCLT token is widely adopted, it is assumed that no more than 0.1% of Hive transactions and no more than 1% of Hive-Engine transactions will involve the OCLT token. Calculation: The table provided (in appendix?) illustrates the details of the calculation. The total energy consumption of the blockchain systems is determined based on the number of active witnesses, average power consumption, and transaction percentages related to OCLT. Breakdown of Calculation: Hive Blockchain (L1): - Active witnesses: 150 - Average power consumption per witness: 200 watts - Total DLT energy consumption (annual): 262,800 kWh - Percentage of transactions related to OCLT: 0.1% - Energy consumption due to OCLT: 262.8 kWh Hive Engine (L2): - Active witnesses: 40 - Average power consumption per witness: 100 watts - Total DLT energy consumption (annual): 35,040 kWh - Percentage of transactions related to OCLT: 1% - Energy consumption due to OCLT: 350.4 kWh Total: Total annual energy consumption across both systems: 297,840 kWh OCLT's estimated energy consumption: 613.2 kWh per year Total hours in a year: 8,760 hours Conclusion: Based on these estimates, the validation of OCLT transactions will add approximately 613.2 kWh to the total yearly energy consumption. This is a minimal impact in comparison to the overall energy use of the two blockchain systems involved.