# Ecological Tools

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**Why do we need ecological tools?**

Kolektivo rejects the free-market thesis which states that any good or service finds its fair value in an unconstrained market. Instead, Kolektivo follows the ecological economic argument that the price signal of fiat currencies generally fails to account for negative externalities, excluding the value of ecological assets and ecosystem services. By their nature as common goods, ecological assets struggle to incentivize human agents to conserve, restore, and manage them. Kolektivo’s key hypothesis is that by assigning the correct value to ecological assets, they will be more attractive to labor, capital, and eco-entrepreneurs, inverting this negative feedback loop into a positive one. This is the reason why Kolektivo introduces ecological tools that enable local monetary governance where ecological assets can be minted, governed, and collateralized. 
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<figure><img src="/files/7OBwrO63UgMXARSHXPhT" alt=""><figcaption><p>The Kolektivo ecological stack.</p></figcaption></figure>

<table data-view="cards"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-cover data-type="files"></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td></td><td><strong>Geospatial Non-Fungible Token</strong></td><td></td><td><a href="/files/V0NAdmkdtlCA7MpcMUS5">/files/V0NAdmkdtlCA7MpcMUS5</a></td><td><a href="/pages/NW4Qa2S2iQdXQmjDHxfR">/pages/NW4Qa2S2iQdXQmjDHxfR</a></td></tr><tr><td></td><td><strong>The Impact Map</strong></td><td></td><td><a href="/files/Ovekg1lJKhkTfQL6u967">/files/Ovekg1lJKhkTfQL6u967</a></td><td><a href="/pages/fPJ3p6JA4pkxvj5YOJTx">/pages/fPJ3p6JA4pkxvj5YOJTx</a></td></tr><tr><td></td><td><strong>Fractionalizer</strong></td><td></td><td><a href="/files/RgXEFrYw8iku0LGFyagh">/files/RgXEFrYw8iku0LGFyagh</a></td><td><a href="/pages/Yh2pukxMOBT9kWNHtj8R">/pages/Yh2pukxMOBT9kWNHtj8R</a></td></tr><tr><td></td><td><strong>Parametric Insurance</strong></td><td></td><td><a href="/files/tWnwvmKCUl9DdRKMazvu">/files/tWnwvmKCUl9DdRKMazvu</a></td><td><a href="/pages/eIQ3IXBGv4qMA7JU1x5p">/pages/eIQ3IXBGv4qMA7JU1x5p</a></td></tr></tbody></table>


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