LP-810: Green Compute & Energy Procurement

Abstract

This LP establishes the policy framework for promoting renewable energy adoption across the Lux Network validator ecosystem. It defines requirements, incentives, and verification mechanisms to achieve the network's goal of 100% renewable energy by 2030.

Motivation

Validator energy consumption represents the largest component of Lux Network's carbon footprint. Addressing this requires:

1. Clear requirements - Validators need guidance on renewable energy adoption
2. Verification standards - Claims must be auditable to prevent greenwashing
3. Economic incentives - Market mechanisms to reward green validators
4. Progressive targets - Phased approach allowing time for transition

This LP creates the framework for transforming the validator network from a potential liability into a sustainability asset. By achieving 100% renewable energy, Lux becomes infrastructure that actively supports global decarbonization goals.

Goals

Metric	2025 Target	2027 Target	2030 Target
Renewable energy %	50%	80%	100%
Verified green validators	30%	60%	90%
Average PUE	<1.5	<1.3	<1.2

Validator Requirements

Tier System

Tier	Renewable %	Verification	Incentive
Green Certified	100%	Third-party	Priority delegation, reduced fees
Green Committed	50-99%	Self-attested + evidence	Recognition, partial incentives
Standard	<50% or unverified	None required	Standard participation

Minimum Requirements (Effective 2026)

All validators must:

1. Report energy source annually
2. Provide hosting location
3. Disclose hardware specifications

2027 Upgrade: Validators with >1% of stake must achieve Green Committed tier.

2030 Upgrade: All validators must achieve Green Committed tier.

Renewable Energy Definitions

Qualifying Sources

Source	Qualifies	Notes
Solar (PV)	✅ Yes	On-site or grid
Wind	✅ Yes	On-site or grid
Hydroelectric	✅ Yes	Run-of-river preferred
Geothermal	✅ Yes
Nuclear	⚠️ Partial	50% credit (low-carbon, not renewable)
Biomass	⚠️ Partial	Must be certified sustainable
Natural gas	❌ No	Even with carbon capture
Coal	❌ No
Oil	❌ No

Renewable Energy Instruments

Instrument	Accepted	Requirements
Direct PPA	✅ Yes	Contract documentation
Bundled RECs	✅ Yes	Same grid region
Unbundled RECs	⚠️ Partial	Must be from same country
Green tariff	✅ Yes	Utility documentation
Self-generation	✅ Yes	Meter data

Verification Requirements

Tier	Evidence Required
Green Certified	Third-party audit OR REC certificates + utility bills
Green Committed	Self-attestation + supporting documentation

Incentive Mechanisms

Delegation Boost

Green Certified validators receive priority in:

• Foundation delegation programs
• Ecosystem grants
• Partnership opportunities

Fee Reduction

Validator Tier	Commission Cap Flexibility
Green Certified	Standard cap applies
Green Committed	Standard cap applies
Standard	May face higher minimum commission (TBD)

Recognition Program

• Green Badge: Displayed on explorer and validator lists
• Annual Awards: Top green validators recognized
• Marketing Support: Featured in sustainability communications

Data Center Requirements

PUE Standards

Rating	PUE Range	Status
Excellent	<1.2	Preferred
Good	1.2-1.4	Acceptable
Average	1.4-1.6	Acceptable (improve by 2027)
Poor	>1.6	Discouraged

Location Considerations

Preferred Regions (low-carbon grids):

• Nordic countries (Norway, Sweden, Iceland)
• Quebec, Canada
• Pacific Northwest, USA
• France (nuclear-heavy grid)

Acceptable Regions (improving grids):

• Most EU countries
• California, USA
• Parts of Asia (varies widely)

High-Emission Regions (requires offsets):

• Coal-heavy grids (parts of China, India, Poland, Australia)
• Unless using 100% verified renewable

Validator Reporting

Annual Disclosure

All validators must submit:

validator_id: "NodeID-..."
reporting_year: 2025
energy_disclosure:
  total_consumption_kwh: 26280  # estimated annual
  renewable_percentage: 75
  renewable_sources:
    - type: "solar"
      percentage: 50
      verification: "green_tariff"
    - type: "wind"
      percentage: 25
      verification: "rec_certificates"
  hosting:
    provider: "Example Cloud"
    region: "eu-north-1"
    pue: 1.25
  hardware:
    type: "cloud_vm"
    instance: "c5.xlarge"
    estimated_watts: 100
attestation:
  signed_by: "validator_operator"
  date: "2025-12-31"

Verification Process

1. Self-submission: Validator submits annual disclosure
2. Evidence upload: Supporting documents (bills, RECs, contracts)
3. Review: Sustainability team reviews submissions
4. Tier assignment: Validator assigned to appropriate tier
5. Audit (sample): Random sample of Green Certified validators audited

Transition Support

Resources for Validators

1. Green hosting guide: List of verified green hosting providers
2. REC procurement guide: How to purchase renewable energy certificates
3. Cost-benefit calculator: Compare green vs. standard hosting costs
4. Technical support: Office hours for sustainability questions

Green Hosting Partners

Validators are encouraged to use hosting providers with:

• Verified 100% renewable energy
• PUE <1.3
• ISO 14001 certification (preferred)
• Transparent sustainability reporting

[Partner list maintained at docs.lux.network/sustainability/partners]

Network-Level Procurement

Foundation Renewable Purchases

The Lux Foundation will:

1. Purchase RECs to cover any shortfall from 2030 target
2. Prioritize high-quality, additional renewable energy
3. Report purchases in annual sustainability report

Carbon Offsets (Last Resort)

For residual emissions after renewable energy:

1. Use high-quality removal offsets (not avoidance)
2. Verified under Gold Standard or equivalent
3. Transparent reporting of offset purchases

Measurement & Reporting

Network Dashboard

Public dashboard showing:

• Total network energy consumption (estimated)
• Renewable energy percentage
• Validator tier distribution
• Carbon intensity (gCO2e/tx)

Quarterly Reports

• Validator survey response rate
• Renewable energy progress
• New Green Certified validators
• Network efficiency trends

Governance

Policy Updates

Changes to this policy require:

1. LP proposal with 30-day comment period
2. ESG Committee review
3. Community vote for material changes

Dispute Resolution

Validators may appeal tier assignments by:

1. Submitting additional evidence
2. Requesting independent review
3. Escalation to ESG Committee

Related LPs

• LP-800: ESG Principles and Commitments
• LP-801: Carbon Accounting Methodology
• LP-820: Network Energy Transparency
• LP-850: ESG Standards Alignment Matrix

Changelog

Version	Date	Changes
1.0	2025-12-17	Initial draft

Copyright

Copyright and related rights waived via CC0.