# Use Cases and Value Proposition Klima Protocol provides a blockchain-based capital system purpose-built for carbon markets. At its core, Klima Protocol exists to serve two foundational objectives: * **Transparent carbon pricing** – so that project developers are not undersold and buyers access the market efficiently with verifiable, real-time pricing. * **Access to carbon markets** – by abstracting away fragmentation, intermediaries, and complexity, Klima serves as a decentralized counterparty for both buyers and sellers, making climate action programmable and accessible at scale. ### Value Proposition #### Carbon Market Infrastructure Klima Protocol serves as a capital, liquidity, and execution layer for tokenized carbon markets. It introduces a formal mechanism for: * Onchain carbon asset pricing based on collective governance and market signals; * Frictionless market access – instant settlement, token-based capital flows, and self-custody trading of carbon assets; * Smart contract execution that eliminates intermediaries, reduces overhead, and enables capital-efficient operations across carbon supply and demand; * 24/7 carbon index (ETF) that allows economic actors to be exposed to the spot and forwards (ex-ante) carbon markets. #### Utility Layer for Tokenized Carbon Klima 2.0 is designed for composability. It allows stakeholders to directly interface with the protocol across multiple functions: * Governance: Token holders vote on which carbon classes are supported and how they’re weighted in the portfolio; * Liquidity provisioning: Stakeholders contribute capital to carbon-backed liquidity pools and receive dynamic yield based on system parameters; * Programmable infrastructure: Developers and integrators can leverage Klima’s smart contracts, Retirement Aggregator, and retirement tools to build carbon-enabled products and services. These components form an infrastructure and economic layer that transforms how capital and carbon interact, turning passive carbon exposure into an actively governed, yield-generating market structure. ### Diverse Ecosystem of Carbon Market Actors Klima 2.0 is designed to serve a diverse ecosystem of carbon market actors: each with their incentives, infrastructure needs, and touchpoints with the protocol. This guide helps map user types to the protocol’s features and value. #### Core Users: Who We Serve * [Project Developers](#project-developers) * [Traders & Wholesalers](#traders-wholesalers) * [Carbon Retailers](#carbon-retailers-why) #### **Other Strategic Participants:** * [Corporate Buyers](#corporate-buyers-smes-to-large-enterprises) * [Institutional Capital (Carbon & ESG)](#institutions-carbon-sector) * [DeFi Protocols & DAOs ](#defi-protocols-and-daos) ## Core Users *** ### Project Developers **Why?** Monetize carbon credits transparently and efficiently. **What?** Sell spot and forward carbon credits to the Klima Portfolio. Participate in governance via whitelisting. **How?** List credits through Klima Protocol’s App or API and receive tokenized consideration. Vote with $kVCM / $K2 to shape market preferences. *** ### Traders / Wholesalers **Why?** Acquire or liquidate carbon as part of their operations. **What?** * Use Klima Protocol as a counterparty for carbon credit supply * Access liquidity, priced in real-time, to service customer retirement demand without taking inventory risk on their books. **How?** By selling carbon to the protocol via Klima Protocol’s App, or using $kVCM to acquire carbon credit retirements. *** ### Carbon Retailers **Why?** Access a diverse, liquid carbon supply without inventory risk. #### What? Source real-time retirements using Klima’s Retirement Aggregator. Integrate pricing and proof into retail flows. #### How? Directly integrating with Klima Protocol via its smart contracts. ## **Other Strategic Participants** *** ### Corporate Buyers (SMEs to Large Enterprises) **Why?** Efficient access to transparently priced carbon credits in service of ESG objectives. **What?** * Directly access carbon credits to service their Scope 1, 2, and 3 carbon footprints. * Have confidence and trust around carbon credit pricing, with reduced market intermediation. * Access diverse carbon credit types, defined with Klima’s carbon classes. **How?** Through the Klima UI, by retiring carbon credits with the $K2 token. *** ### Institutions – Carbon Sector **Why?** Influence the Klima Protocol **What?** * Utilise the Protocol as a tool for influence over the carbon markets, by influencing carbon pricing and supply; * Access transparent Protocol data to understand carbon credit pricing and retirement trends, and understand the VCM userbase; * As appropriate, influence the Protocol’s carbon pricing and supply by participating in governance. **How?** Accessing data dashboards, as appropriate, and interacting with Protocol via its UI. *** ### Institutions – Financial / ESG Investors **Why?** Direct participation in the RWA, in both passive and direct ways. **What?** * Active: * Participate directly in Klima Protocol’s carbon economy * Provide liquidity within Klima’s liquidity pools. * Passive: * Acquire $kVCM and $K2 tokens as part of their general strategies. **How?** Via the secondary market, by utilising $kVCM or $K2 positions via the Klima Protocol UI. *** ### DeFi Protocols & DAOs **Why?** Build climate-aligned onchain strategies.\ \ **What?** * Offset protocol or community activities. * Utilise carbon as collateral for their strategies. * Build sustainable DeFi solutions using Klima primitives **How?** With Klima’s staking contracts, LP positions, and treasury-compatible allocation flows.