Can blockchain turn trash into cash?

Across the globe, waste management remains a challenge. Cities spend millions daily to transport and process trash, yet landfills continue to expand. Much of this waste—plastic, metal, and electronic materials—holds potential economic value, but the lack of incentives for proper segregation leads to inefficiencies. The Waste2Earn project aims to change that.

Inspired by countries like Germany, where people queue to sell recyclables, Waste2Earn uses blockchain to monetize waste through a decentralized system. But can a waste-to-earn model really work on a global scale? And how does blockchain ensure that the process remains sustainable rather than speculative?

Revaluing waste

Waste2Earn estimates, based on their own data, that the average person generates a minimum of 6.6 pounds of waste daily, much of it recyclable. However, waste often ends up in landfills due to the lack of incentives for segregation.

Built on the Internet Computer Protocol (ICP), Waste2Earn introduces an economic model where users (waste creators), waste collectors (garbage truck operators), and recyclers (token buyers) form a circular economy where properly sorted trash gains financial value.

“The issue isn’t just waste production—it’s that people have no direct reason to segregate it,” explained Rod Albores, the founder of Waste2Earn. “If you introduce incentives, the behavior will change.”

Through its model, waste tokens serve as rewards for proper segregation. A burning mechanism ensures token scarcity, potentially driving up value over time. Large businesses could purchase tokens to meet Environmental, Social, and Governance (ESG) standards, which may offer them tax incentives and verifiable sustainability credentials.

ESG credits have become increasingly important, especially for publicly listed companies that must meet stringent reporting requirements. Many importers also require ESG scores when sourcing products, with countries like the US, UK, Hong Kong, Singapore, and the Philippines having some degree of ESG disclosure regulation, ensuring they align with sustainability standards.

Unlike other incentives such as tree planting—where thousands of trees are planted but often left without follow-up, leading to high mortality rates—waste-to-earn initiatives offer a more transparent and verifiable method of securing ESG credits.

However, the challenge remains: Can waste tokens maintain long-term value without falling into the same pitfalls as other blockchain reward models? And who stands to gain the most—the individuals sorting their trash, or the companies trading these assets?

High-value trash vs. low-value trash

Not all waste is equal. Plastics and metals are highly sought after, while sanitary waste and chemically treated materials have little to no financial potential. Some companies are working on solutions—such as converting low-value waste into compost fertilizer—but around 30% of waste remains non-recyclable. Waste2Earn aims to reduce landfill dependency by at least 70%, focusing on integrating recycling efforts with blockchain technology.

Chong, who runs an auto servicing business, acknowledges the complexity of waste segregation. “We generate a lot of waste—fluids, spare parts, metal scraps. Some materials can be refurbished, but others require proper disposal.” Among the interviewed industries, the auto servicing and accessories sector showed the most optimism in adopting waste-to-earn blockchain solutions.

The situation differs for those in agriculture, like calamansi farm owner Anselm. “Most of my waste is biodegradable and can be repurposed. However, without a structured collection system, it’s not feasible to participate in waste trading at scale.” While open to adopting waste-to-earn solutions, Anselm was skeptical of its viability and whether it was worth implementing, noting that most biodegradable waste is already organically recycled.

Meanwhile, skepticism remains in construction, where large-scale industrial waste is generated. “We reuse broken materials when possible,” said Mike, a construction material supplier manager. Warehouses generate significant amounts of dust, broken tiles, and discarded fixtures, which can take up substantial space. However, there are already recycling procedures in place for broken materials, like broken tiles, as they can still be used for other projects.

Despite the potential benefits of a waste-to-earn model, Mike remains unconvinced despite possible financial incentives tied to crypto-based systems.

These perspectives highlight a major challenge: Can a one-size-fits-all model for waste valuation work across different industries and regions?

Waste as a financial asset?

Waste2Earn believes tokenized waste could function similarly to carbon credits, where businesses purchase tokens to offset environmental impact.

However, concerns remain over market stability. How does the system prevent fraud, such as falsifying recycling reports?

To address this, Waste2Earn is exploring AI-powered smart bins that verify waste categorization and store data on the blockchain. “Blockchain ensures transparency, but technology must support its real-world application,” Rod said. “We’re working with developers to build systems that prevent exploitation.”

If successful, dynamic pricing models for waste—where token value fluctuates based on material scarcity—could emerge. However, the long-term question remains: Is this a sustainable model, or will it simply create another speculative digital asset?

Despite its potential, Waste2Earn faces major hurdles. One of the biggest challenges is education and community buy-in. Segregation practices vary widely across different parts of the world, making it essential to implement localized education campaigns that encourage proper waste sorting and participation in the waste-to-earn model.

“The biggest issue isn’t blockchain,” the founder explains. “It’s changing waste management behavior. If people don’t segregate properly, none of this works.”

Currently, Waste2Earn has launched wallets and pilot programs and is securing grants for further development. They are also in discussions with ESG certification bodies to integrate waste-to-earn within sustainability frameworks worldwide.

Waste-to-earn presents a bold vision: a world where waste is a tradeable financial asset rather than an environmental burden. If widely adopted, it could transform global recycling systems, ensuring that waste management is both profitable and sustainable.

While still in its early stages, Waste2Earn is pushing the boundaries of what waste can be worth. Whether it becomes a new standard for sustainability or just another market-driven initiative remains to be seen.