Ripple Concludes RLUSD Powered Kenya Drought Insurance Pilot

In case the NDVI fell below the value of 0.55, full RLUSD would be paid. A linear scale was used to determine NDVI values between 0.55 and 0.61. Partial payouts were distributed if the NDVI read 0.57, and did not payout if it was above 0.61. In the pilot period, the NDVI values showed favorable results for the health of the vegetation throughout Laikipia; thus, no disbursements were made. However, the RLUSD tokens are still saved to be used for future drought periods, especially in high-risk months.

Although there have never been payouts, the pilot was regarded as successful in building a scalable and automated climate relief system. Ripple reported that the money will be carried into the second half of the year, the next high drought risk period, so that the funding can continue without going back to raise funds.The support on Ripple also allowed the project to raise its funding goal to 40,000, intending to cover 533 pastoralists each with $75 to secure them. The estimate will feed one livestock animal within a six-month period.