# BFF Governance . BFF Governance and Capital Allocation 112 6. Innovative Mechanisms for Financing Bioregional Regeneration 6. Innovative Mechanisms for Financing Bioregional Regeneration There are a range of innovative financing mechanisms that we believe can help BFFs achieve their objectives. Many of the themes explored in this book are aligned with the values and patterns driving the decentralized finance or “DeFi” movement. The authors believe that the potential of existing protocols, tools, technologies, and templates in the Web3 space to bolster the bioregional movement and supercharge grassroots regeneration, has – as yet – not been realized. Additionally, there is potential for further innovation, building on what has been learned in Web3 to date and what we have laid out with the objectives, attributes, and templates of BFFs. The BioFi x DeFi intersection provides fertile soil for experimentation. In this section, we explore a range of innovative financial tools and approaches (in the DeFi space and beyond) that we believe could help capitalize Bioregional Financing Facilities, enable participatory capital allocation, and support the transition to regenerative bioregional economies. Some areas we would like to see further innovation and experimentation include: bioregional Nature-based Currencies, bioregional participatory capital allocation (including through Quadratic Voting or Quadratic Funding), and the construction of Ecological Institutions for ecosystems or species to support their regeneration and sovereignty. 6.1 Web3-based eco-credits, Decentralized Autonomous Organizations, and Ecological Institutions Web3-based eco-credits, Decentralized Autonomous Organizations (DAOs), and Ecological Institutions present innovative tools for financing bioregional regeneration efforts. Web3-based eco-credits, built on blockchain or Holochain231 231 While similar to blockchain in using cryptography to create a distributed ledger for decentralized data management, Holochain is designed to empower peer-to-peer coordination and agreement customization while yielding greater efficiency and scalability by avoiding blockchain’s dependence on a single universal system state across all participating computers. (HOLO: Here’s Holochain in 100, 200, and 500 words)