Ecosystem

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Ecosystem
KlimaDAO will maximize value creation for its community by creating a virtuous cycle of growth. 
The activity within the ecosystem will increase the supply of KLIMA; a new KLIMA can only be minted by putting a BCT (Base Carbon Tonne) in the Klima DAO Treasury and removing it from the market. 
Hence, when scale is achieved, the number of (KLIMA backed by) BCTs in the treasury will be inversely proportional to the availability of carbon offsets on the traditional carbon markets. 
Removing carbon supply in the market and locking it within the treasury will interfere with demand conditions in the traditional markets, increasing the cost of carbon offsets and the related tokens. 
Klima DAO will be deployed on Polygon, an energy efficient L2 solution; deploying on-chain will bridge carbon offset supply, with DeFi demand.
There are two key pieces of infrastructure underpinning the system:
1.Carbon Offset Tokenisation: Toucan Carbon Bridge
The BCT (Base Carbon Tonne) — KlimaDAO's based tokens — is a carbon offset index token representing a basket of different tokenised carbon tonnes starting withTCO2.
Every TCO2 represents a unique carbon offset brought on-chain using the Toucan Carbon Bridge, Moss.earth and C3.app. Each offset is obtained by bringing 1 tonne of carbon dioxide emissions mitigated or removed from the atmosphere from verified projects across the globe. 
Key characteristics of the carbon offsets are brought on-chain when it is transformed into a TCO2, including:
Project Name
Serial Number
Project type (renewable energy, forest carbon project, blue carbon, etc.)
Vintage Year
Verification Standard
Different TCO2 tokens can represent carbon offsets from different projects, e.g. a forestry project in Brazil or a soil carbon project from the US. However, creating an on-chain market for carbon requires standardisation. This is the role of the the on-chain carbon pools — each TCO2 can be locked into the carbon pools in reward for an ERC-20 token such asBCT, UBO, NCT or NBO. BCT and the tokenized carbon tokens within the pools are therefore carbon index tokens, based on various offsets from multiple projects.
2. Klima DAO Ecosystem
The core principle of the KlimaDAO ecosystem is that a KLIMA token can only be minted by the treasury if at least 1 BCT (or other) is deposited in the treasury.
Because every BCT is covered by a carbon credit that guarantees the mitigation or removal of 1 tonne of carbon, this system is built on, and internalises carbon. 
KLIMA's value is connected with the value of the BCT (or other) locked in the KlimaDAO treasury; it is fair to say that on-chain carbon and the carbon offset value will be subject to market events. 
Longer-term participation in the Klima ecosystem will be incentivised by three key mechanisms: 
1. Bonding
Bonding is the process of trading an LP token to the protocol for KLIMA. The protocol will evaluate an amount of KLIMA, a discount, and a locking period for the trade. Creating a bond will require participants to give up their LP tokens, and in return the protocol will bonders with discounted KLIMA relative to the value on the open market. This enables the treasury to receive more carbon. 
2. Staking
Staking is the dilution mechanism of KLIMA. Staking is designed to give users participation in the ecosystem.  The longer participants stake, the more KLIMA tokens they will have when they unstake.  
When KLIMA is staked via the staking contract, they receive sKLIMA on a 1:1 basis. sKLIMA automatically compounds via rebase operations, but the token is not officially listed on any DEX. sKLIMA can, however, be transferred between wallets - for example to move your sKLIMA from a hot wallet to a cold wallet. 
When stakers unstake, they always receive KLIMA on a 1:1 basis for their sKLIMA holdings. 
FAQ
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