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ESG (Environmental, Social, and Governance) regulations for crypto assets aim to address their environmental impact (e.g., energy-intensive mining), promote transparency, and ensure ethical governance practices to align the crypto industry with broader sustainability and societal goals. These regulations encourage compliance with standards that mitigate risks and foster trust in digital assets.
Name | Bitpanda Asset Management GmbH, Bitpanda GmbH |
Relevant legal entity identifier | 9845005X9B7N610K0093, 5493007WZ7IFULIL8G21 |
Name of the crypto-asset | EthereumPOW |
Consensus Mechanism | Ethereum PoW employs the traditional Proof of Work (PoW) consensus mechanism, maintaining the original Ethereum blockchain's mining-based validation process after the transition to Proof of Stake (PoS) by the Ethereum mainnet. Core Components: Proof of Work (PoW): Ethereum PoW secures its network through miners competing to solve cryptographic puzzles to validate transactions and produce new blocks. The mining process is computationally intensive, requiring significant energy consumption and specialized hardware (e.g., GPUs and ASICs). Ethash Algorithm: The blockchain uses the Ethash algorithm, designed to be memory-intensive and resistant to ASIC dominance, ensuring broader participation in mining by allowing GPUs to compete effectively. Block Production and Finality: New blocks are added to the blockchain by miners who successfully solve the cryptographic puzzle, with block rewards and transaction fees acting as incentives. Ethereum PoW achieves probabilistic finality, meaning transactions become increasingly irreversible as additional blocks are added to the chain. |
Incentive Mechanisms and Applicable Fees | Ethereum PoW maintains the traditional incentive structure of Proof of Work, rewarding miners for securing the network and processing transactions, while users pay transaction fees for network operations. Incentive Mechanism: Block Rewards: Miners earn block rewards in ETHW (Ethereum PoW tokens) for successfully mining new blocks and adding them to the blockchain. These rewards incentivize miners to dedicate computational power to secure the network. Transaction Fees: In addition to block rewards, miners receive transaction fees paid by users for executing transactions or interacting with smart contracts on the network. These fees are included in the blocks miners validate, providing an additional revenue stream. Deflationary Model: A portion of transaction fees (base fee) may be burned under the EIP-1559 model implemented in the original Ethereum chain, reducing the overall token supply over time and potentially increasing the value of ETHW. Applicable Fees: Gas Fees: Users pay gas fees in ETHW for network transactions, which vary based on the complexity of the transaction and network demand. Gas fees include a base fee (burned) and a priority fee (paid to miners). Smart Contract Fees: Smart contract interactions incur additional gas costs, reflecting the computational resources required to execute the operations. |
Beginning of the period | 2024-09-09 |
End of the period | 2025-09-09 |
Energy consumption | 60918359.40733 (kWh/a) |
Energy consumption resources and methodologies | The energy consumption of this asset is aggregated across multiple components: For the calculation of energy consumptions, the so called 'top-down' approach is being used, within which an economic calculation of the miners is assumed. Miners are persons or devices that actively participate in the proof-of-work consensus mechanism. The miners are considered to be the central factor for the energy consumption of the network. Hardware is pre-selected based on the consensus mechanism's hash algorithm: Etchash. A current profitability threshold is determined on the basis of the revenue and cost structure for mining operations. Only Hardware above the profitability threshold is considered for the network. The energy consumption of the network can be determined by taking into account the distribution for the hardware, the efficiency levels for operating the hardware and on-chain information regarding the miners' revenue opportunities. If significant use of merge mining is known, this is taken into account. When calculating the energy consumption, we used - if available - the Functionally Fungible Group Digital Token Identifier (FFG DTI) to determine all implementations of the asset of question in scope and we update the mappings regulary, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts. To determine the energy consumption of a token, the energy consumption of the network(s) ethereumpow is calculated first. For the energy consumption of the token, a fraction of the energy consumption of the network is attributed to the token, which is determined based on the activity of the crypto-asset within the network. When calculating the energy consumption, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is used - if available - to determine all implementations of the asset in scope. The mappings are updated regularly, based on data of the Digital Token Identifier Foundation. The information regarding the hardware used and the number of participants in the network is based on assumptions that are verified with best effort using empirical data. In general, participants are assumed to be largely economically rational. As a precautionary principle, we make assumptions on the conservative side when in doubt, i.e. making higher estimates for the adverse impacts. |
Renewable energy consumption | 29.306425042 (%) |
Energy intensity | 0.02028 (kWh) |
Scope 1 DLT GHG emissions - Controlled | 0.00000 (tCO2e/a) |
Scope 2 DLT GHG emissions - Purchased | 25098.12414 (tCO2e/a) |
GHG intensity | 0.00835 (kgCO2e) |
Key energy sources and methodologies | To determine the proportion of renewable energy usage, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal energy cost wrt. one more transaction. Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Share of electricity generated by renewables - Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/share-electricity-renewables. |
Key GHG sources and methodologies | To determine the GHG Emissions, the locations of the nodes are to be determined using public information sites, open-source crawlers and crawlers developed in-house. If no information is available on the geographic distribution of the nodes, reference networks are used which are comparable in terms of their incentivization structure and consensus mechanism. This geo-information is merged with public information from Our World in Data, see citation. The intensity is calculated as the marginal emission wrt. one more transaction. Ember (2025); Energy Institute - Statistical Review of World Energy (2024) - with major processing by Our World in Data. “Carbon intensity of electricity generation - Ember and Energy Institute” [dataset]. Ember, “Yearly Electricity Data Europe”; Ember, “Yearly Electricity Data”; Energy Institute, “Statistical Review of World Energy” [original data]. Retrieved from https://ourworldindata.org/grapher/carbon-intensity-electricity Licenced under CC BY 4.0. |