SMX to introduce a plastic cycle token in 2024
SMX (Security Matters) has planned the launch of a plastic cycle token. The release is scheduled for release in the second quarter of 2024. SMX designed this token to present a reliable, ethical digital credit platform, aiming to capitalize on billions of dollars in recyclable plastics credits in a newly created market.
SMX says that the contemplated collaboration is expected to amalgamate an array of partners and sponsors, each contributing to the creation of the Plastic Cycle Token. Consortium members are being identified and will be selected to provide knowledge and technology to ensure best practices and technical proficiency.
This tradeable plastic cycle token is being designed to enable companies to transition towards sustainable practices, encouraging entities within and outside the plastic ecosystem, including oil producers and waste management firms, to increase recycled content utilization.
This initiative is also expected to position the SMX Plastic Cycle Token as an alternative to carbon credits. Each token is being designed to represent a quantifiable amount of recycled plastic using SMX's technology to physically mark the plastics, potentially offering a tangible impact on environmental circularity.
SMX believes that the goals of its Plastic Cycle Token project align with the European Union's ongoing efforts to address the limitations of the current carbon credit system, including the adoption of a strict mass balance definition. The proposed EU Packaging and Packaging Waste Regulation aims for at least 50 percent of all EU plastic waste to be recycled by 2025.
Mass balance, a chain of custody model under ISO standard 22095, is already utilized in sectors like biofuels and fair-trade commodities. However, SMX believes that this is still not sufficient. SMX's technology enables physical traceability, supporting this Plastic Cycle Token model, and SMX believes will incentivize genuine plastic recycling.
SMX's technology can identify the origins and composition of raw materials in consumer products and packaging, promoting efficient recycling and reuse. It comprises a chemical marker, reader technology, and blockchain data storage, facilitating a global system for grading and certifying plastic recycled content.