Our Responsibility

As a crypto company, we think it's important for FTX to be mindful our direct and indirect contributions to carbon emissions.

Key Points:

  • FTX mainly contributes to greenhouse gas emissions by subsidising cryptocurrency withdrawals, which requires blockchain transactions, which can require energy that often produces carbon emissions [Details here]
  • Over 80% of these transactions are done with proof-of-stake currencies, which have very small energy requirements (similar to sending an email) [Details here]
  • FTX indirectly encourages proof-of-stake with the withdrawal fee structure, Proof-of-Stake withdrawals are completely free [withdrawal fee details here]
  • While FTX has partial responsibility for the 20% of transactions, we aim to be an overall strongly positive force for reducing greenhouse gas emissions through our other work at FTX climate, which includes $1,000,000 in carbon offsets, $550,000 towards climate research and communication, and plans to continue spending millions towards the most effective climate destinations we can find

As a company we care about the impact we have on the world. We are proud of the word the FTX Foundation has done since its launch less than a year ago and are very excited to improve and scale our work to have the largest positive impact we can. FTX would not exist if not for this belief.

We can look at the typical measures of how a company calculates their carbon footprint, and we don't reach any meaningful conclusions. We are a small number of people who mostly live in apartments, work in small offices, and have mostly existed while there has been limited travel. We don't manufacture, ship, or process any physical goods. We are working with external parties to still quantify this but the magnitude isn't significant.

What we do think is significant is the ownership we take for our involvement in the crypto world. Cryptocurrency mining can use significant amounts of energy and although we don't do our own mining we do partially subsidise those who do. Specifically we pay for our client's to make cryptocurrency withdrawals, which sends a fee to the miners who do use significant amounts of energy.

FTX Climate aims to ensure that we find ways to directly make up for this and confidently say we are carbon neutral, and more importantly we aim to play such a large role in the climate movement that we can confidently say we are part of the solution.