I want to jam on this part a bit: from a mechanistic perspective, we can push quite hard on the design side.
Tokens. These tokens will naturally be NFTs – they represent a specific parcel of a specific forest or farm. From a regulatory point of view, they would likely be seen as commodity tokens.
While natural capital currencies/tokens (NatCaps) may be NFTs in their least fungible state, we can imagine a number of state transitions for NatCaps — the most straightforward is sharding (the “making-fungible” of an NFT), but the reverse movement (the “making-nonfungible”) of an ERC20 is also of particular interest (e.g. Spectre). While this has traditionally been approached with an oracle-referenced buyout mechanism at some multiplier of market cap, I believe we can introduce more exotic conditions for the making-nonfungible of various NatCaps from sharded states. One example would be: some sort of price ceiling is hit, and growth of the original NFTs market is curtailed in favor of building up a new capital reserve to purchase more land – which is either added to the original NFT or designated as a new NFT and placed in a composable financial artifact with the first (e.g. ERC-998 or an N-dimensional LP token). This isn’t in principle different than what Terra0 proposed nearly five years ago – it just uses more sophisticated primitives to seamlessly automate NatCap area growth and liquidity formation.
But, moving back to the idea of state transitions for NatCaps: this seems to me to be biomimetic in nature, in that we’re trying to create some sort of homeostatic rhythm to market formation, expansion, and pause in relation to real-world states. We should scratch this itch and look to expand the idea of biomimetic markets – there seems to be conceptual room to re-imagine interspecies and ecological relations in terms of NatCap market-representations. Some (conceptually) related Lab work.
Staking Services. They should be able to be “staked.” Staking a natural capital token with a project administrator would allow the project administrator to add value to the land (protecting the forest, switching the farming technique to regenerative ag, etc) to generate ecological service credits (like carbon credits) [emph added] that can be split between the staker and the project manager.
I added the emphasis here as there are some regulatory and market arbitrage opportunities here that I think are worth probing – one example is blue carbon, which has struggled to gain legitimacy due to measurement issues. I think: as long as the data of a particular measurement is sound enough, the retail demand for these types of novel financial instruments (i.e. ecological service credits) is there. But we have to complement these types of models with money demand and adequate liquidity formation mechanisms (which the Celo reserve sort of does globally through the seigniorage mechanism in relation to its various collaterals).
One thing to keep an eye on is Klima DAO and the concept of protocol owned liquidity (POL) – if we DAOify the governance of various NatCaps, and have sufficient POL, mechanisms like underwriting the ecological state of a given area (as I describe in the Kolektivo whitepaper) become feasible.
Oracles. Over time, protocols that measure and report the ecological value of tokenized natural capital (such as number of trees, water retention properties of the soil, biodiversity, etc) using sensors and satellite imagery, will be useful for smart contracts that trigger on enhancing the ecological value of the land.
This is one of the bigger challenges and the least developed in terms of available tooling. This is a huge research area, basically. I don’t have a lot to add except I firmly believe having effective geospatial smart contract tooling (e.g. Astral Protocol) is necessary to accurately delimit and intervene into NatCap NFT geographies. Dark Matter Labs has a decent article articulating their thinking around this as well.
Assuming we are able to get to a meaningful portion of the reserve to forest tokens (say, 40%) in the few year time frame, the reserve would, at current cUSD in circulation, preserve tens of thousands of acres of forest… [emph added]
And maybe, for the sake of being nitpicky, I would respond here: we need to move past our terrestrial biases to have a successful NatCap program 
. Phytoplankton, seagrass, and the oceans make up the majority of earth’s surface area and require a lot of thinking and love as well. And frontier geographies that sit between land and sea, such as reefs, provide incredible ecosystem services by mediating storms and sea surges. Curve Labs is working on a specification for tokenizing Posidonia Oceanica in this regard.