Mozilla will accept PoS crypto assets only for donations and not PoW assets

Mozilla, a Firefox web browser nonprofit, announced on April 7 the resumption of cryptocurrency donations, but only for cryptocurrencies based on the Proof of Stake (PoS) consensus mechanism. Mozilla has been accepting cryptocurrency donations since 2014. In January 2022, it stopped accepting crypto donations citing the huge carbon footprint resulting from cryptocurrency mining.
In the report titled “Reporting back on Mozilla’s cryptocurrency donations”, Mark Surman highlighted these details and points regarding the new crypto donation requirements for the organization:
  • The Mozilla executive has revealed that 14 weeks after Mozilla suspended all crypto donations in January, it has reassessed its stance and made the decision to continue accepting cryptocurrencies for philanthropic purposes.
  • However, this would only include digital assets that rely on a Proof-of-Stake (PoS) consensus model.
    • Mozilla will develop and share the list of cryptocurrencies that will be accepted under the PoS model by the end of Q2 2022.
  • The software community would no longer accept crypto donations from digital assets based on proof-of-work (PoW) consensus mechanisms because they are energy-intensive like Bitcoin.
  • Surman explained that in order to increase their understanding of the environmental impact of cryptocurrency and to determine if and when Mozilla should accept cryptocurrency donations, he took a break in January to conduct a review on the question.
  • He reasoned Mozilla’s approach with the firm’s climate commitments in accordance with the Paris Climate agreement.
    • Under the agreements, Mozilla committed in January 2021 to significantly reduce its greenhouse gas footprint over the years to exceed the net zero emissions commitment.
  • PoW cryptocurrencies can significantly increase the carbon footprint and so Mozilla has decided not to accept proof of work donations to ensure their fundraising activities are in line with the emissions pledge.
  • Mozilla is also committed to helping develop, design, and improve products to make them more sustainable. In this pursuit, the organization wants to play a positive role in encouraging cryptocurrencies that are transparent about their power consumption habits.

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