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KlimaDAO is a Decentralized Autonomous Organization to drive climate action and fulfill our manifesto, via our carbon-backed, algorithmic cryptocurrency- the KLIMA token.
As the protocol grows, KlimaDAO will solve the critical problems of the carbon markets:
- Illiquidity: Carbon Credits come in many different varieties; carbon brokers and middlemen are used by buyers and sellers, fragmenting the total liquidity of the market.
- Opacity: Trades occur often behind closed doors, allowing buyers to underbuy the market.
- Inefficiency: buying and retiring carbon credits comes with friction and barriers, by utilizing the polygon ecosystem, it removes this friction for all users.
In delivery of its objectives, KlimaDAO will become the single biggest disruptor of the carbon markets and set a precedent for a new monetary system backed by carbon. KlimaDAO will serve the web3 ecosystem by offering accountability for those that contribute, rewards for stakeholders, and a stake in governance for those that participate.
KlimaDAO incentivizes new supply of Tokenized Carbon Tonnes (TCT) on the blockchain through the KLIMA token. By driving demand into Tokenized Carbon, it incentivizes carbon offset producers to produce more carbon credits, assisting the adoption of new carbon mitigating or sequestering technology, and disincentivizes companies wanting to offset their carbon footprint with only C.Cs, and forces them to perform environmentally friendly actions.
KLIMA is the first building block for unlocking the carbon economy — an economy where more economic activity leads to an acceleration in planetary regeneration rather than more damage to our planet. Before, monetary incentives and environmental incentives aren't typically aligned.
The KLIMA ecosystem and monetary policy are managed by the KlimaDAO. This way we guarantee transparent decision making and long-term stability. In the long term, we can use this system to optimize stability, to transition to a global unit of account and medium of exchange. Currently, in the short term, we're focused on growth and wealth creation, to incentivize users to join the new wave of carbon currency.
The current carbon (and the climate in general) markets are illiquid, fragmented, inefficient, and opaque. Because of this, we feel that carbon tonnage is heavily undervalued, and is forced down because of these issues. By eliminating these issues, the true price can be achieved.
Participation in the carbon ecosystem: At the time of writing BCT, NCT, UBO, NBO and MCO2 are the main forms of tokenized carbon within the KlimaDAO treasury and their flow into the treasury underpins protocol growth.
Digital carbon tokens represent real-world Verified Carbon Units (VCUs) from a registry such as Verra - BCT can be created via the Toucan Protocol’s public bridge while MCO2 is a centrally managed product of Moss; new MCO2 tonnes are brought on chain using Moss’ private bridge. Bonders can obtain discounted KLIMA tokens over a 5-day vesting period using the bonds mentioned above. Once KLIMA tokens are held, stakers should stake their tokens in reward for more KLIMA tokens based on the AKR at each epoch ~7.2 hour intervals.
KlimaDAO is currently working towards becoming fully decentralised - see our Governance Framework for more details. All decisions that affect the smart contract protocol are formed by community members on the forum and made by KLIMA holders through snapshot voting. The changes are then implemented by the Klima Core Team based on the result of the vote - see our Organization Structure for more details.
We say, "KLIMA is backed by carbon offsets" because each KLIMA token has an Intrinsic Value (IV) of 1 BCT - which means the treasury must have at least 1 BCT held in reserves in order to mint 1 KLIMA. In addition, the treasury contains excess reserves, comprising the Carbon Custodied (CC) above 1 BCT which will eventually be paid out to stakers of KLIMA in the form of rebase rewards.