Zenko's First Quarterly Token Burn: 5.84M Tokens Removed

Written By Jason Sibley

Executive Summary

Zenko Protocol has calculated its first quarterly token burn, and is due to remove 5.84 million tokens from circulation. This burn represents tokens used across our pilot campaigns and carbon offsetting initiatives, including the groundbreaking first televised NetZero football match that offset 1,000 tonnes of CO₂, and the spaces first climate positive prediction market and metaverse, as well as client engagement campaigns. With major platform expansions coming in Q4 we're positioned for significantly larger burns ahead as real enterprise demand drives consistent token utilisation and supply reduction.

The Foundation: From Pilot to Production

Our first quarterly burn of 5.84 million tokens marks a pivotal transition from pilot campaigns to live production with paying enterprise customers. Unlike typical crypto projects that inflate tokens for growth reasons, every Zenko token burned represents real-world value creation through either engagement campaigns or verified carbon offsetting.

This quarter's burn consisted of two primary use cases:

  • 4 million tokens from pilot engagement campaigns

  • 1.84 million tokens for direct client carbon offsetting

Engagement Campaigns: Building the DeENGAGE Economy

Client Engagement Usage Summary:

  • SoccerAid for UNICEF: 1,000 tonnes of carbon offset

  • B2B Combined ESG Value: $36,000 in measurable impact

  • Pilot Campaigns: 4 million tokens burned

The model proved that major sporting events and brands can be not just carbon neutral, but actively beneficial to the climate. This creates a replicable template for the 25+ professional clubs in our pipeline and many blue chip brands, each of whom can now point to verified methodology and measurable outcomes.

Carbon Offsetting: Direct Client Impact

Client Offsetting Usage Summary for Q3:

  • Pavia Metaverse: 14.5 tonnes (paid forward)

  • Predictfully: 1 tonne (paid forward)

  • Total Verified Credits: 1,529 Verra Registry Verified Carbon Standard credits

These "paid forward" arrangements demonstrate how Zenko is becoming the infrastructure for automatic carbon offsetting. Rather than companies calculating emissions after the fact, they're pre-purchasing carbon neutrality through our token system so they can be ‘climate positive’. This move is critical when you have large enterprise clients with their own ESG/CSR targets.

The 1,529 verified carbon credits we offset cover Q3 and provide a substantial bank to cover Q4 and Q1 operations, ensuring our partner platforms launch with guaranteed climate-positive status from day one. You can view this on the VERRA registry here.

Breaking Down the Burns

(1) SoccerAid 2024: Setting the Climate-Positive Sports Standard

The Challenge: Calculating a Complete Carbon Footprint

For SoccerAid 2024 at Stamford Bridge—the UK's first NetZero televised football match—we needed to account for every possible emission source. Working with sustainability experts and established carbon accounting methodologies, we broke down the footprint into three comprehensive scopes:

Scope 1 - Direct Stadium Emissions:

  • Energy consumption for stadium operations

  • Generator fuel for temporary power needs

  • Direct heating and cooling systems

  • Equipment operation during the event

Scope 2 - Indirect Energy Emissions:

  • Purchased electricity from the grid

  • Backup power systems

  • Lighting for evening match requirements

  • Electronic systems and broadcasting equipment

Scope 3 - The Complex Challenge: This represented the bulk of our calculations and included:

  • Fan Travel: With over 40,000 attendees, fan travel represented the largest single emission source. Using established methodology, large stadium events generate 15-25 kg CO₂e per person for local travel, significantly more for long-distance attendees

  • Accommodation: Hotel stays for traveling fans and VIP guests

  • Food and Beverage: Catering for 40,000+ people, including supply chain emissions

  • Merchandise Production: Kit manufacturing, program printing, branded materials

  • Event Logistics: Equipment transport, setup materials, temporary infrastructure

  • Digital Emissions: Website traffic, mobile app usage, social media engagement

  • Broadcasting Infrastructure: TV production equipment, satellite transmission, streaming to 4 million viewers

Our Calculation Methodology:

Using industry-standard carbon accounting frameworks, we estimated:

  • Average per-person impact: 20 kg CO₂e (accounting for mix of local and traveling fans)

  • Base attendee emissions: 40,000 × 20kg = 800 tonnes

  • Production and logistics overhead: Additional infrastructure, broadcasting, and operational emissions

Total baseline estimate: 800 tonnes CO₂e

Why We Chose 1,000 Tonnes: The Climate-Positive Principle

Rather than offset exactly what our model predicted, we made the strategic decision to offset 1,000 tonnes. This 25% buffer wasn't arbitrary - it represented our commitment to being “climate positive” rather than just carbon neutral.

The additional 200 tonnes accounted for:

  • Calculation uncertainties: Carbon accounting involves assumptions about travel distances, energy sources, and behavioral patterns

  • Unknown variables: Post-event activities, extended digital engagement, secondary content creation

  • Streaming emissions: 4 million viewers represented unprecedented digital reach with hard-to-calculate energy consumption

  • Supply chain complexities: Merchandise and catering emissions often have unclear upstream impacts

This approach eliminated any possibility that SoccerAid 2024 merely broke even on climate impact - it guaranteed the event delivered a net positive environmental benefit. You can view the the VERRA certificate here.

(2) Predictfully: Detailed Carbon Methodology and Scaling Analysis

The Challenge: Quantifying Blockchain Gaming Emissions

Calculating Predictfully's carbon footprint required developing a novel methodology since prediction market platforms weren't included in existing blockchain emissions reports. We based our analysis on the Crypto Climate Research Initiative (CCRI) report on Avalanche network emissions, then developed proportional allocation methods.

Foundation Data from CCRI/Avalanche Report:

  • Total Avalanche Network Emissions: 178.3 tonnes CO₂e annually

  • Network Electricity Consumption: 469.8 MWh per year

  • Coverage: All validators, network operations, and infrastructure

Our Methodology Development:

Since Predictfully operates as a dApp on Avalanche, we needed to determine what proportion of network emissions to allocate to the platform. We developed a transaction-based allocation model:

Step 1: Transaction-Based Carbon Allocation

  • Assumed Avalanche Network Volume: 100 million transactions annually (conservative estimate)

  • Carbon per Transaction: 178.3 tonnes ÷ 100 million = 0.001783 kg CO₂e per transaction

  • Converted: 0.001783 kg = 1.78 grams CO₂e per transaction

Step 2: Player Activity Modeling Based on typical prediction market behavior patterns:

  • Average Player Activity: 1 transaction per day (betting, claiming, staking)

  • Monthly Transactions per Player: 30 transactions

  • Monthly Carbon per Player: 30 × 1.78g = 53.4g CO₂e from blockchain activity

Step 3: Infrastructure Overhead Added 20% overhead for off-chain infrastructure:

  • Server hosting and maintenance

  • API calls and data processing

  • User interface delivery

  • Customer support systems

  • Total per Player/Month: 53.4g + 20% = 64g CO₂e

Scaling Projections by User Base:

Sensitivity Analysis:

Our calculations include several variables that could significantly impact actual emissions:

Transaction Frequency Sensitivity:

  • Current Model: 1 transaction/day per player

  • Conservative Scenario: 1 transaction/week = 30x lower emissions

  • Active Scenario: 3 transactions/day = 3x higher emissions

Network Efficiency Improvements:

  • If Avalanche's total transaction volume exceeds 100 million annually, per-transaction costs decrease proportionally

  • Network upgrades and efficiency improvements could reduce baseline emissions

Infrastructure Variables:

  • Renewable energy hosting could reduce overhead emissions

  • CDN optimisation could lower delivery costs

  • More efficient smart contracts could reduce gas usage

Token Burn Implications:

At current Q4 usage (paid forward for 1 tonne), Predictfully is operating at approximately the 15,000-20,000 player monthly level. As the platform scales toward 100,000+ players - typical for successful prediction markets - monthly carbon offset requirements would increase proportionally, driving consistent token burns for climate neutrality. Predictfully has the scope to expand into the millions of users as its a sports focussed, consumer ready platform with mass adoption appeal (not built for web3)

Learn more about Predictfully here.

(3) Pavia Metaverse: Climate-Positive Virtual Worlds

The Infrastructure Challenge

Pavia's Q4 relaunch required comprehensive carbon accounting for metaverse infrastructure - a rapidly evolving field with limited established methodology. We developed a hybrid approach combining data center energy usage, user device consumption, and blockchain transaction costs.

Our Calculation Framework:

Server Infrastructure (Primary Source):

  • Hosting Requirements: Multiplayer real-time rendering, asset streaming, physics simulation

  • Geographic Distribution: Edge nodes for latency optimization

  • Peak Concurrent Users: Designed for 10,000+ simultaneous users

  • Data Transfer: High-resolution asset streaming, real-time positional updates

Estimated Q4 Infrastructure Impact: 12.1 tonnes CO₂e

This calculation used industry averages for gaming server infrastructure:

  • Server Density: 2.5 kWh per concurrent user per hour (including cooling, networking)

  • Usage Patterns: 4 hours average session, 15% concurrent user rate

  • Energy Grid Mix: European average carbon intensity (0.3 kg CO₂e per kWh)

User Device Consumption:

  • Device Types: PC gaming rigs, mobile devices, VR headsets

  • Power Consumption Range: 150-500W for gaming PCs, 15-25W for mobile

  • Usage Distribution: 70% PC, 30% mobile based on similar platforms

  • Estimated User Device Impact: 2.4 tonnes CO₂e monthly

Blockchain Integration:

  • Cardano + EVM Transactions: User interactions, NFT mints, reward distributions

  • Transaction Volume: Estimated 50,000 monthly transactions

  • Blockchain Carbon Cost: Minimal due to efficient consensus mechanism

Total Q4 Estimated Emissions: 14.5 tonnes CO₂e monthly

Why This Represents a 80-90% Improvement Over Physical Events:

Comparable real-world alternatives would include:

  • Physical Gaming Convention: 150-200 tonnes CO₂e for similar attendance

  • Sports Stadium Event: 800+ tonnes for 40,000 attendees

  • Concert Venue: 300-500 tonnes for major productions

Q4 Platform Expansion: What's Coming Online (that we need to account for)

1. Pavia Playground

  • Technology: Procedurally generated environments with edge rendering

  • Capacity: Scalable to k’s+ concurrent users

  • Features: Live events, brand activations, user-generated content

  • Carbon Efficiency: 90% reduction vs equivalent physical events

2. Tokyo District

  • Theme: Cyberpunk urban environment ("Blade Runner meets Shibuya")

  • Purpose: Brand campaigns, esports tournaments, music launches

  • Technical Specs: High-resolution assets, dynamic lighting, interactive elements

  • Estimated Additional Load: 3-4 tonnes CO₂e monthly at full capacity

3. Brand Miniverses (White-Label Solution)

  • Offering: Privately hosted worlds for enterprise clients

  • Target Market: Agencies, sports clubs, major brands

  • Technical Architecture: Isolated instances with custom branding

  • Carbon Accounting: Separate calculation per client for ESG reporting

4. Flux

  • Function: Land holder sandbox and testing environement.

  • Integration: Carbon tracking built into core systems

  • Monitoring: Automated emissions reporting for all client activities

Brand Value Proposition: The Climate-Ready Metaverse

For enterprise clients, Pavia solves multiple compliance and cost challenges

Scaling Economics:

As Pavia grows from current capacity to projected 100,000+ monthly active users, carbon costs scale linearly while user value compounds exponentially. This creates improving economics for both carbon offsetting and user acquisition:

  • Current: 14.5 tonnes/month for ~5,000 users = 2.9 kg per user

  • At Scale: ~150 tonnes/month for 100,000 users = 1.5 kg per user

  • Efficiency Gain: 50% carbon cost reduction per user at scale

This improving efficiency, combined with the 80-90% emissions advantage over physical events, positions Pavia as the sustainable choice for brands planning major digital activations.

The Q4 Expansion: Why Burns Will Scale Dramatically

Sports Partnership Explosion

The MK Dons "buy a shirt, feed a child" model is expanding to a major football rollout across our #SportsForGood programme. With 25+ professional clubs in our pipeline, each implementing similar engagement-to-impact models, we anticipate exponentially larger token utilization.

Conservative estimates suggest that if each partnered club hits their targets shirts annually (matching MK Dons' initial performance), that alone would drive 20m direct token transactions for charitable impact, not including the additional fan engagement rewards. Our target with the EFL is 50m meals a year. You can read more about this on the EFLs website here.

Zenko Protocol Featured on ITV talking about Sports for Good.

Platform Integration Scalability

Metaverse Platform Launch: Pavia's Q4 relaunch brings climate-positive metaverse experiences to market. Based on our calculations, Pavia's carbon footprint at 14.5 tonnes per quarter is equivalent to just 7 London-New York flights - 80-90% lower than equivalent live events. As brands discover they can run engaging virtual campaigns with automatic carbon neutrality, adoption should accelerate rapidly.

Prediction Market Growth: Predictfully's integration demonstrates our model's versatility across different blockchain ecosystems (Avalanche). Our carbon impact calculations show that even at scale -1 million players monthly - the platform would require only 64.2 tonnes of CO₂ offset annually, representing significant token burn potential as the platform grows.

New Platform Integrations

Q4 launches include:

  • Major tech vendor integration on their website

  • Martech automation platform (SMB SAAS solution)

  • DeFi wallet & protocol integration (Flashy Finance)

  • SocialFi platform (to be announced)

Each integration represents a new demand vector for tokens, either through engagement campaigns or automatic carbon offsetting for business operations.

Beyond Carbon: The Engagement Multiplier

While carbon offsetting provides consistent baseline demand, engagement campaigns offer potentially unlimited upside. Traditional marketing costs range from $50-200 per qualified lead. Our clients consistently achieve $8-10 costs per lead while generating measurable impact.

As more Fortune 500 companies discover they can simultaneously:

  • Reduce customer acquisition costs by 35-98%

  • Achieve ESG compliance automatically

  • Generate authentic brand differentiation through verified impact

The engagement campaign volume should scale significantly beyond our current pilot phase.

Looking Forward

Based on confirmed partnerships and platform launches, Q4 2025 should see substantially larger burns driven by:

Sports Partnerships: 25+ clubs vs current 1 club = 25x scaling potential Platform Users: Multiple platforms launching vs current pilot status Enterprise Adoption: Moving from pilots to full campaigns with established ROI proof

Conservative estimates suggest Q1 burns could exceed 15-20 million tokens, with aggressive growth scenarios potentially reaching 50+ million tokens as platform adoption compounds.

The Deflationary Infrastructure

Zenko's burn mechanism differs fundamentally from typical crypto deflationary models. Rather than arbitrary burns to create scarcity, every burned token represents:

  • Verified real-world impact (carbon offset, meals provided, trees planted)

  • Measurable business value (reduced marketing costs, qualified leads)

  • Regulatory compliance (ESG reporting, Scope 3 emissions)

This creates a sustainable deflationary pressure tied directly to business adoption rather than speculative demand.

Conclusion: Infrastructure for the Impact Economy

Our first 5.84 million token burn establishes the operational foundation for consistent supply reduction tied to real economic activity. As enterprises discover that tokenized engagement provides superior ROI while generating measurable impact, adoption should accelerate across all verticals.

The Q4 platform expansion represents a 10x increase in token utility vectors, from sports partnerships and metaverse integrations to prediction markets and SaaS solutions. Each integration adds both engagement campaign potential and automatic carbon offsetting demand.

For token holders, this burn report demonstrates that Zenko's deflationary mechanism operates independently of crypto market cycles, driven instead by the massive shift toward sustainable business practices and performance marketing evolution.

The engagement economy is here. The infrastructure is live. The burns are just beginning.

$ZENKO is available on Swissborg app, Raydium DEX and Blofin exchange.

Jason Sibley
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