Mozilla will only accept PoS crypto assets for donations, not PoW crypto assets
Mozilla, the non-profit organisation behind the Firefox web browser, stated on April 7 that cryptocurrency donations would be resumed, but only for cryptocurrencies that use the Proof of Stake (PoS) consensus process. Since 2014, Mozilla has accepted cryptocurrency donations. It ceased taking cryptocurrency donations in January 2022, citing the massive carbon impact associated with cryptocurrency mining.
Mark Surman has highlighted the following details and points about Mozilla’s new crypto donation restrictions in his article titled “Reporting back on Mozilla’s cryptocurrency donations”:
Mozilla evaluated its position 14 weeks after suspending all crypto payments in January and has decided to continue taking cryptocurrency for altruistic purposes, according to the CEO.
This would, however, only apply to digital assets that use a proof-of-stake (PoS) consensus basis.
By the end of the second quarter of 2022, Mozilla will have developed and shared a list of cryptocurrencies that will be accepted under the PoS approach.
Because digital assets based on Proof of Work (PoW) consensus algorithms, such as Bitcoin, are energy-intensive, the software community will no longer accept crypto donations.
Surman added that Mozilla took a break in January to undertake a review in order to better understand bitcoin’s environmental impact and evaluate whether and when it should accept cryptocurrency donations.
He rationalised Mozilla’s approach in light of the company’s climate commitments under the Paris Climate Agreement.
According to the accords, Mozilla committed in January 2021 to significantly reduce its greenhouse gas footprint over the next several years in order to meet the net-zero emissions goal.
Because proof-of-work cryptocurrencies have the potential to significantly increase carbon emissions, Mozilla has opted not to accept proof-of-work donations in order to ensure that its fundraising operations are in line with its carbon promise.
Mozilla is also dedicated to assisting in the development, design, and improvement of sustainable goods. The organisation hopes to play a beneficial role in this endeavour by encouraging cryptocurrencies that are open about their energy consumption trends.