KlimaDAO is an open infrastructure for climate finance, built to address the inefficiencies of global carbon markets.

Today, carbon markets are critical to channeling capital into climate solutions, yet they remain slow, opaque, fragmented, and burdened by trust gaps. These barriers limit liquidity, delay transactions, and make it harder for environmental projects to access fair funding.

KlimaDAO exists to change this.

We provide a rules-based system for pricing, managing, and retiring carbon credits that improves transparency, accelerates market access, and strengthens confidence for all participants.

Klima is protocol.

Klima is a DeFi protocol composed of multiple smart contracts on the Polygon PoS public blockchain. These smart contracts are designed to work together to form a larger protocol with the aim of growing environmental commodity markets on-chain, as a means to efficiently and transparently accelerate climate financing at a global scale.

The Klima protocol issues the $KLIMA token which is utilized by the protocol and its stakeholders to align and incentivize treasury and market development activities.

KLIMA is a token.

$KLIMA is KlimaDAO's native token; an ERC-20 token also deployed on Polygon. Every $KLIMA token is backed by at least one carbon tonne in the KlimaDAO treasury. A new $KLIMA token can only be minted by locking a tonne of digital carbon in the KlimaDAO treasury.

$KLIMA token serves as the gateway to the on-chain environmental markets, and serves multiple purposes for the DAO and its stakeholders:

• $KLIMA provides the liquidity for on-chain markets via protocol owned liquidity.

• $KLIMA can be staked to hedge against ecosystem inflation.

• $KLIMA is the primary mechanism for the treasury to acquire digital carbon (referred to as “reserve assets”) and liquidity (referred to as “assets”).

• $KLIMA can be used to redeem and retire digital carbon via the and .

Klima is a DAO.

KlimaDAO is a Decentralized Autonomous Organization (DAO): a social coordination layer, where the success of its mission is determined by how you and other participants affect it and get involved. Its treasury, liquidity and smart contracts are controlled by its token holders and contributors. It is underpinned by its , which exist to drive effective participation and engagement, priming KlimaDAO to solve precisely the type of coordination failure that has compromised our planet’s climate and ecosystems.

KlimaDAO is built for the market

Addressing coordination failure means bringing together diverse actors and enabling them to fulfil their objectives by enabling them to leverage KlimaDAO's technology and its treasury. Since launching in 2021, KlimaDAO has developed liquidity pools containing tens of millions of carbon credits, built infrastructure that makes accessing this liquidity, and developed a wealth of resources and tooling designed to enable users to participate in its mission.

Key user groups fall under five broad categories:

Governance

DCM stakeholders can leverage the DAO as a coordination engine. The journey starts with – as the $KLIMA token can be used to participate in KlimaDAO’s , deciding on KlimaDAO’s allocation of its Treasury and its market-making capabilities. Users can navigate to the , to take part in this consensus-forming process.

Infrastructure

Users can leverage KlimaDAO’s native tooling to navigate the Carbon Market (CM) and its opportunities. Users can purchase $KLIMA to access environmental assets, hold $KLIMA to offset future emissions, use $KLIMA to retire credits and drive environmental impact, and navigate the DCM using .

Ecosystem

With people continuing to build on top of KlimaDAO’s underlying open base layer, users can navigate their way through the different applications and DCM services available via the Ecosystem hub.

Builders

KlimaDAO’s tools enable builders to integrate digital carbon into any application: this is where you will find what you need to get started on that journey and to get support from the DAO.

Resources

The ever-growing documentation and provides you with the content you need, whether you’re looking for expertise and insights, guidance and education, or updates and announcements.

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

Other Strategic Participants:

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:

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.

What is a Carbon Pool?

The carbon markets are incredibly diverse, with thousands of projects from across different jurisdictions, methodologies and vintages. Project-specific tokenized carbon tonnes such as TCO2 or C3T tokens can functionally represent any of these carbon credits. Standardizing these markets can enable the development of liquidity and more efficient markets, and this is the role of on-chain carbon pools.

Carbon Pools bundle multiple project-specific tokenized carbon tonnes into more liquid carbon index tokens, enabling price discovery for different classes of carbon assets.

Each TCO2

Why build on the blockchain?

Carbon credits on public blockchains are identical to those held on off-chain databases, however, their presence on the blockchain allows the credits themselves to yield a number of advantages to their users. Foremost, all credits on public blockchains can be transparently traced, every trade and retirement can be validated and viewed by market stakeholders, this reduces information asymetry within the market and enables the market to build trust. Furthermore, credits on the blockchain can be leveraged by Web3 protocols and applications - allowing the carbon itself to become programmable and composable; to become a 'money Lego' – this can in-turn empower new use-cases, and ultimately drive innovations that will increase scale and efficiency within these critical markets.

Explore the Digital Carbon Market with the KlimaDAO Digital Carbon Market dashboard.

Carbon Projects

What is a carbon credit?

Carbon credits are issued by Carbon Standards (such as Verra and Gold Standard) on behalf of verified carbon projects that can demonstrably remove or avoid greenhouse gas emissions. This includes initiatives like renewable energy, forest conservation and regeneration, soil carbon enhancement, and industrial emission capture. Issued carbon credits are traded in the market and retired (or "offset"), often by corporate users; carbon credits therefore function as a financial incentive for those developing the carbon projects.

What are carbon markets?

There are both compliance markets and voluntary carbon market (VCM) where carbon credits are traded actively as a means to finance sustainability projects.

Voluntary carbon market (VCM): Businesses and individuals driven by sustainability goals can choose to offset their emissions. Traditionally, they would purchase credits from various projects through carbon registries such as , , , , and etc. not linked to specific state-mandated compliance schemes.

In the voluntary markets, carbon projects are required to follow specific methodology standards and are subjected to a strong verification process from carbon credit registries to ensure credit quality and impact.

Compliance market: These operate under mandatory government regulations like cap-and-trade systems in Europe, California, or Colombia. Entities exceeding their allocated emission limits must purchase credits from verified projects to comply. Such credits are issued and tracked through government-sanctioned registries.

The role of blockchain-enabled markets

The VCM has been around for decades and has become an integral mechanism for raising climate finance. It has however had its growth inhibited due to difficulties relating to market accessibility, transparency, illiquidity and high transaction fees. KlimaDAO any many others within the Web3 ecosystem aim to develop new technologies and governance mechanisms which leverage the blockchain for the carbon markets, that avail market participants with the benefits of open-source, distributed infrastructure.

What are examples of carbon projects?

1. Nature-based carbon sequestration. Biological sequestration absorbs CO2 emissions through the growth of vegetation and the continued storage of some of the carbon in plant tissues and organic materials derived from plant tissues (e.g. stored in the soil). An example project is the . Other examples include biochar (long term carbon storage from biological sources), and afforestation initiatives (e.g. tree planting on degraded landscapes).

2. Renewable energy. Renewable Energy projects include hydro, wind, and photovoltaic solar power, solar hot water and biomass power and heat production. Many renewable energy projects have high up-front capital costs, although they may offer high rates of return, and their operating costs are often minimal once built. Carbon credits help support these projects by providing an additional revenue stream to offset their high up-front capital costs. This is an example and helps reduce 182,016 tons of carbon dioxide equivalent a year by replacing polluting fossil fuel power plants.

3. Methane capture

Carbon Credit Tokenization

In order to make use of carbon credits on the blockchain as digital carbon, carbon credits must be "tokenized" or bridged onto the blockchain from a traditional carbon registry via a carbon bridge. Tokenization allows the integrity of the carbon credits that have been issued in accordance with rigorous carbon standards to be maintained, but for them to benefit from the market infrastructure develop on the blockchain.

While the technical details of each bridge may differ, the process of bridging and tokenizing carbon credits is generally similar. Carbon credit holders (such as project developers, traders, and corporates) can initiate the bridging process by submitting verified carbon credits to their chosen bridge. Upon successful transfer, the bridge seamlessly tokenizes the credits, translating each verified tonne of carbon into a unique digital token on the blockchain. Key characteristics of the carbon credits are brought on-chain when it is transformed into a tokenized digital carbon credit, including:

• Project Name

• Serial Number

• Project type (renewable energy, forest carbon project, blue carbon, etc.)

• Vintage Year

This process ensures users can always verify the integrity and provenance of the credit.

Carbon Bridges

Carbon bridges serve as a vital link connecting traditional carbon registries with blockchains.

Toucan

Toucan carbon tokens (TCO2) is the general term for fungible tokenized carbon credits bridged via Toucan. When you fractionalize a BatchNFT received after bridging, the resulting TCO2 ERC20 token will have TCO2- as a prefix, followed by an information-rich name that includes the registry of origin, the project, the vintage, and so on. More information on the tokenization process can be found in the .

C3

C3 supports carbon credits from the leading ICROA-endorsed carbon standards including Gold Standard, Verra, American Carbon Registry and Climate Action Reserve methodologies which enable carbon removal.

C3 Tonne (C3T) is the general term for fungible tokenized carbon credits bridged via C3. When you fractionalize the C3VCU NFT received after bridging, the resulting C3T ERC20 token will have C3T- as a prefix, followed by an information-rich name that includes the registry of origin, the project, and the vintage. More information on the tokenization process can be found in the .

Moss

Moss carbon tokens (MCO2) is the term for fungible tokenized carbon credits bridged via Moss. More info about MCO2 can be found on the .

Additional resources

Explore the Digital Carbon Market with the .

The Klima token holder community voted to implement a bug bounty in .

If you believe that you have identified a bug or vulnerability, please send details and instructions to reproduce to .

Reference the full text of KIP-2 linked above for details and eligibility criteria of the bounty program.

$KLIMA is designed as a token central to providing liquidity in the carbon market. It plays a pivotal role in the Carbon Market (CM) by acting as a means of exchange and de-facto index of carbon projects.

The DAO wallet is an address guarded by a simple Gnosis safe implementation. The DAO wallet holds all the DAO funds accumulated over time.

Access to the DAO wallet is controlled by a 3 of 5 multi-sig held by members of the core team.

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At its core, a currency's role as a means of exchange is fundamental to its utility and value within any economic system. This function allows it to facilitate transactions by serving as an intermediary instrument that can be traded for goods, services, or other assets. Being a means of exchange is crucial because it enables economic participants to overcome the inefficiencies of barter systems, where a mutual coincidence of wants is required. Instead, with a universally accepted medium, transactions become smoother, markets become more efficient, and the scope for economic activity broadens significantly.

Importance of Being a Means of Exchange for KLIMA

For KLIMA, acting as a means of exchange within the environmental markets, particularly in the carbon economy, is vital. It signifies that KLIMA is not just another digital asset but a functional currency that can be used to conduct transactions seamlessly across a network of participants. This role is pivotal for several reasons:

• Market Efficiency: By facilitating easy and efficient transactions, KLIMA helps streamline the market for carbon credits, making it more accessible and liquid. This efficiency is crucial for the growth and effectiveness of the carbon market, enabling more participants to engage in carbon trading and offsetting activities.

• Economic Activity: As a means of exchange, KLIMA supports a wide range of economic activities within the environmental sector, from funding green projects to trading in carbon credits. This versatility enhances the token's utility and demand, driving its adoption across different market segments.

• Value Stability: The more widely accepted and used KLIMA becomes as a means of exchange, the more stable its value is likely to be. A currency that is actively used for transactions tends to have a more predictable demand, contributing to its stability and reliability as a store of value.

Integration with Liquidity Pools

The existence of KLIMA/CARBON and KLIMA/USDC pools is central to KLIMA's effectiveness as a means of exchange. These pools allow for the exchange of KLIMA for carbon credits or USDC, thereby enabling participants in the environmental markets to easily trade, offset carbon emissions, or leverage KLIMA for other financial activities. The liquidity in these pools ensures that transactions can occur without significant slippage, making KLIMA a reliable medium through which market participants can engage with the carbon economy.

Effectiveness and Performance

So far, KLIMA has shown promise in its role as a means of exchange, transacting over $4billion in transactions through its pools to date. By providing liquidity and facilitating transactions in the carbon market, it has contributed to the increased accessibility and fluidity of environmental assets. This has not only helped in streamlining the process of buying and selling carbon credits but also in enhancing the overall efficiency of the carbon market.

However, the effectiveness of KLIMA as a means of exchange can be further improved. One area for enhancement is the depth and stability of its liquidity pools. Ensuring that these pools can accommodate larger transactions without impacting the market price of KLIMA significantly will make it an even more attractive medium of exchange. Additionally, expanding the variety and reach of KLIMA/CARBON pools could improve its utility by catering to a broader range of carbon credits and environmental projects.

Pathways for Improvement

To enhance its role as a means of exchange, KLIMA could focus on several strategic initiatives:

• Deepening Liquidity: By securing more protocol-owned liquidity and encouraging broader participation in its liquidity pools, KLIMA can improve its capacity to facilitate larger transactions more efficiently.

• Expanding Pool Variety: Introducing more KLIMA/CARBON pools for different types of carbon credits can cater to a wider array of market needs, making KLIMA a more versatile means of exchange.

• Enhancing User Experience: Simplifying the process of engaging with KLIMA and its associated pools can lower the barrier to entry for new participants, thereby increasing the volume and frequency of transactions.

In conclusion, while KLIMA has effectively served as a means of exchange within the environmental markets, there is potential for further optimization. By focusing on liquidity, asset diversity, and user accessibility, KLIMA can strengthen its position as a pivotal currency in the carbon economy, facilitating more efficient and widespread adoption of carbon offsetting and trading activities.

$KLIMA is designed as a utility token, central to providing liquidity in the carbon market. It plays a pivotal role in the Carbon Market (CM) by acting as a means of exchange and index of carbon projects.

This section outlines the operational mechanics, the dynamics, and the purpose of $KLIMA.

Operational mechanics:

1. Intrinsic value

2. Protocol Owned Liquidity (POL)

KlimaDAO's Retirement Aggregator acts as a convenient and powerful tool for seamlessly retiring carbon credits on the blockchain. It streamlines the process by allowing you to use your choice of payment (such as USDC or KLIMA) to purchase, redeem, and retire carbon in various ways including specific project tokens, different types of carbon pool tokens, listings on the Carbonmark marketplace, and even retirement bonds (when capacity is available).

This eliminates the need to navigate individual carbon token protocols or carbon pool mechanics and ensures accurate tracking and verification of your carbon retirement efforts. Essentially, the Retirement Aggregator simplifies carbon credit retirement for users while promoting transparency and efficiency within the KlimaDAO ecosystem.

The easiest way for the average user to try out the Retirement Aggregator is via Carbonmark. This simplifies the process even further, allowing you browse to seamlessly access the aggregator's features within a familiar user interface.

Technical details

The Retirement Aggregator is powered by a series of smart contracts on Polygon. Below are more resources to learn about the technical details of how the aggregator functions and how you can integrate it into your smart contract or application:

Staking

The Staking contract accepts KLIMA for staking and returns sKLIMA, and accepts sKLIMA for unstaking, returning KLIMA. It also manages the warmup period to ensure stakers only receive rewards after their warmup period has expired (if the warmup period is longer than 0 epochs).

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StakingHelper

Utility contract that wraps functionality form the Staking contract for ease-of-use.

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Distributor

The distributor contract receives minted KLIMA from the treasury in order to drip-feed rewards to stakers. Note that the reward rate determines the rebase rate and that the rebase rate determines the . Below are listed distributor contracts by version, where the latest version represents the currently active contract.

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Automated BCT Fee Burn

After taking ownership of the BCT pool via KIP-57, KlimaDAO implemented an automated mechanism for burning accumulated selective redemption fees from the BCT pool using Gelato:

• https://app.gelato.network/functions/task/0x2fdd3f4b9690948246a91c383bce45b50b0cd6637f0b5d420905f82d43dfe3c9:137

Sushi Green Fee Periodic Retirement

To power the functionality, a Chainlink Keeper periodically trigger a carbon credit retirement using accumulated fees.

The intrinsic value (IV) of the KLIMA token is a fundamental operational mechanic that underpins its role as an algorithmic reserve currency for environmental markets. This section delves into the principles and implications of the intrinsic value that each KLIMA token holds.

At a minimum,

Foundation of Intrinsic Value

At the core of KLIMA's design is the principle that every token is backed by at least one carbon tonne. This backing not only establishes a tangible value for the token but also aligns KLIMA's utility with environmental sustainability efforts. The KLIMA treasury, holding tonnes from hundreds of diverse carbon offset projects, acts as a de-facto index of carbon projects. This unique feature ensures that the value of KLIMA is directly connected to a broad spectrum of environmental initiatives, reflecting the health and diversity of the carbon market.

Axioms of Intrinsic Value

1. Guaranteed Minimum Value: The intrinsic value provides a guaranteed price floor for the KLIMA token, ensuring that there is always a minimum value associated with each token. This floor is established by the backing of at least one carbon tonne per KLIMA, setting a tangible benchmark for its value.

A good store of value is an asset that maintains its worth over time without depreciating. For an asset to be considered a reliable store of value, it must possess several key characteristics:

Characteristics of a Good Store of Value

• Durability: The asset should withstand physical and economic changes over time, maintaining its value across generations.

The role of KlimaDAO is multi-facted. KlimaDAO...

Manages $KLIMA

• KlimaDAO designed $KLIMA: a utility token, central to providing liquidity in the carbon market. It plays a pivotal role in the Carbon Market (CM) by acting as a means of exchange and index of carbon projects.

Some of the following functions allow for direct retirement of bridge-specific project tokens. Others are simply wrappers for common functions found within their protocols such as redeeming tokens from a pool. Note that the Moss bridge is absemt because it does not currently support specific retirement or redemption.

Toucan

The dynamics of KLIMA's supply expansion are designed to ensure the token's resilience and its harmonious growth alongside the Carbon Market (CM). Central to this approach is , the proposal to align the Annual KLIMA Rate (AKR) with the growth rate of the CM, encapsulated by the straightforward equation:

The Significance of Supply Expansion

Understanding Liquidity in Markets

Liquidity is the lifeblood of any efficient market, enabling seamless trades without significantly affecting the asset's price. Traditional carbon markets often operate over-the-counter (OTC), predominantly featuring ask prices with limited visibility on bids. This structure can lead to inefficiencies, including price opacity, large price spreads, and illiquidity. In contrast, the KLIMA token, through its integration with Automated Market Makers (AMMs), actively participates in both bidding and asking across narrow price spreads, enabling a transparent and fluid market environment.

In decentralized finance (DeFi), liquidity is facilitated differently than in traditional markets. Platforms like Uniswap and Sushiswap have pioneered the use of on-chain Liquidity Pools (LPs), which are smart contracts containing pairs of assets, such as KLIMA and USDC. The principle of X*Y = K underpins these liquidity pools, ensuring that the product of the quantities of the two assets remains constant, thereby defining the relationship between supply and demand.

KLIMA connects environmental assets with on-chain financial primitives that can scale environmental markets via liquid and transparent market infrastructure.

Enhancements with Concentrated Liquidity Uniswap's introduction of concentrated liquidity functionality marks a significant advancement in capital efficiency within AMMs. This innovation allows liquidity providers to allocate their capital to specific price ranges, maximizing capital efficiency and enabling more strategic liquidity management. This feature is particularly beneficial in optimizing the liquidity of KLIMA/CARBON pools, ensuring that capital is utilized where it's most needed, thereby reducing slippage and enhancing market stability.

The Foundation of Carbon Markets

Klima's approach to carbon markets involves the use of , which are essential in creating a liquid, accessible, and efficient market for carbon credits. These pools are formed by tokenizing individual carbon projects as ERC-721 tokens, which are non-fungible tokens (NFTs), which are then aggregated into liquid ERC-20 tokens (if they satisfy the gating criteria), facilitating ease of trade and integration into the broader DeFi ecosystem. This section outlines the structure, gating criteria, and strategic importance of these carbon pools within Klima's ecosystem.

Gating Criteria for Carbon Pools

Gating criteria are designed to homogenize a heterogeneous market, bundling illiquid instruments into a deeply liquid pool of similar assets to allow for price discovery.

• BCT (Base Carbon Tonne): Designed as the lowest common denominator of the carbon market, BCT encompasses the widest gating criteria. This broad selection is intended to make BCT a foundational building block for the carbon market, reflecting a wide array of carbon offset projects with varying methodologies and impacts.

Air Travel

The most authoritative source for estimated emissions associated with commercial air travel is this calculator from ICAO:

For private air travel, emissions are substantially higher and highly dependent on the aircraft flown and number of passengers.

Query Params

To facilitate integrations, the KlimaDAO retirement interface supports query parameters to prefill a defined set of arguments.

Every field can be pre-filled, including selective retirement.

You can provide multiple arguments for projectToken and these will be automatically filled into the selective retirement fields (and the 'Advanced' dropdown will open itself to reveal them automatically).

Example URL with all fields filled, and 2 selective project tokens:

The recommended way to test Klima protocol contracts or smart contracts utilizing the is using a forked blockchain testing environment. Popular smart contract development tools such as Foundry or Hardhat allow you to fork the current state of the Polygon blockchain using an RPC. This allows you or your locally deployed contracts to interact with existing contracts as if you were actually on the Polygon mainnet.

Once you've forked the Polygon mainnet, review existing .

The treasury contract is a simple vault implementation holding all the funds collected by the protocol. Access to the treasury is secured by a 3 of 5 multisig held by the Core Team.

Below are listed treasury contracts by version, where the latest version represents the currently active contract.

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KlimaDAO Official

💻 🌲 🌍 🏛️ 🗳️ 🐦 💬 📺

The Green Ratio

The Green Ratio, as established in KIP-55, represents an economic framework guiding the allocation of KLIMA's treasury assets, thereby shaping its operational and strategic direction. This ratio is a fundamental principle that positions KLIMA as an index of environmental assets, calibrated to reflect KLIMA’s commitment to environmental sustainability and economic resilience.

Analytical Overview of the Green Ratio

At its inception, the Green Ratio delineates the treasury's asset allocation into four primary categories: Forward Carbon, Treasury Reserves, Operational Expenditure (OpEx), and Carbon Backing, with an initial weighting of:

• Forward Carbon {22%}

• Treasury {48%}

• Operational Expenditure (OpEx) {10%}

• Carbon Backing {20%}

Forward Carbon (22%)

Forward Carbon represents commitments to future carbon credits. These are essentially agreements to purchase carbon offsets that will be generated from environmental projects.

KLIMA has pursued multiple deals approved by KlimaDAO proposals, aimed at securing future carbon credits. Some examples include agreements with , community based , , and (DAC) with storage via ocean alkalinity enhancement.

Treasury (48%)

The Treasury basket includes a variety of assets held by the protocol that are not immediately earmarked for carbon backing. This includes protocol-owned liquidity, spot carbon credits not used for backing, and deployed USDC.

Components:

• Protocol Owned Liquidity (POL): Assets held in liquidity pools that provide market depth and stability for KLIMA and its associated carbon credit tokens.

• Spot Carbon: Carbon credits that are immediately available but not currently designated for backing KLIMA tokens.

• Deployed USD: Financial assets, possibly in stablecoins like USDC, that are invested or deployed in yield-generating activities to support the protocol's financial health.

Operational Expenditure (OpEx) (10%)

OpEx covers the day-to-day operational costs of running KlimaDAO, including everything from development work to marketing and legal fees.

Components:

• Idle USDC or USD: Liquid assets reserved for operational expenses, ensuring that the protocol can cover its immediate and short-term needs without compromising its strategic asset allocations.

Carbon Backing (22%)

Carbon Backing is the core of KLIMA's value proposition, ensuring that each KLIMA token is backed by tangible environmental assets.

Components:

• Base Carbon Tonnes (BCT): The primary asset used for backing KLIMA tokens. BCTs are carbon credits verified by recognized standards, providing a direct link between KLIMA's market value and its environmental impact.

Potential Allocation States:

Tactical Allocation for Rebalancing

To account for fluctuations in market conditions that may cause the asset ratio to drift from the foundational 22:48:10:20 allocation, a tactical allocation of up to 10% of the net asset value is permitted. For example, at any given time as little as 0% or as much as 20% of the treasury may be ring-fenced for OpEx. This shift is not for the exploration of alternative investments but serves as a rebalancing buffer.

The tactical allocation allows the DAO to adjust holdings in each of the primary categories in order to realign them with the foundational 22:48:10:20. Such adjustments should be data-driven and predicated on market analytics.

The tactical allocation will be reviewed in each quarterly report, aiming to restore the foundational allocation, unless market analytics provide a strong justification for maintaining the current course or adjusting the ratio.

Economic Rationale Behind the Green Ratio

Optimizing Economic Decision-Making: The Green Ratio enables KLIMA to navigate the volatile environmental commodity markets with precision. By allocating assets across different categories, KLIMA can optimize its economic decisions, focusing on long-term growth and sustainability. This strategic diversification reduces risk and enhances the protocol's ability to capitalize on market opportunities.

Promoting Efficiency and Alignment: The framework ensures that KLIMA's resources are deployed in a manner that aligns with its overarching goals of promoting environmental sustainability and market efficiency. It provides a clear roadmap for resource allocation, ensuring that every decision is made with the protocol's long-term vision in mind.

Adapting to Market Conditions: The tactical allocation buffer within the Green Ratio allows KLIMA to adjust its asset distribution in response to market fluctuations. This flexibility is crucial for maintaining the protocol's economic stability and ensuring its resilience against market cycles.

KLIMA as an Index of Environmental Assets

The governance of KLIMA's treasury assets through the Green Ratio effectively positions the protocol as an index of environmental assets. This is critical for several reasons:

Market Representation: By aligning its asset allocation with the dynamics of the environmental commodity markets, KLIMA offers stakeholders a representative index of the market's performance and opportunities. This representation enhances KLIMA's utility as a vehicle for environmental investment and engagement.

Value Stability: The strategic management of treasury assets under the Green Ratio contributes to KLIMA's stability as a store of value. By ensuring that asset allocation is responsive to market conditions and protocol objectives, KLIMA maintains its economic viability and attractiveness as a currency.

Environmental Impact: The allocation towards Forward Carbon and Carbon Backing directly ties KLIMA's value to tangible environmental outcomes. This linkage ensures that KLIMA's growth and success are intrinsically connected to its positive impact on the environment, reinforcing its role as a sound vehicle for environmental finance.

Conclusion

The Green Ratio is a testament to KLIMA's innovative approach to economic management and environmental sustainability. By governing the allocation of treasury assets with precision and foresight, KLIMA not only optimizes its economic performance but also solidifies its position as a leading index of environmental assets. This strategic framework ensures that KLIMA remains a resilient and impactful currency, capable of navigating the complexities of the environmental commodity markets while driving meaningful change.

The dynamics of supply contraction within the KLIMA ecosystem are primarily facilitated through the innovative use of retirement bonds. This mechanism is pivotal for managing the circulating supply of KLIMA tokens, ensuring the system's balance and sustainability. Understanding how retirement bonds function and their impact on KLIMA's supply is essential for grasping the broader economic model of KLIMA and its role in the carbon market.

Understanding Retirement Bonds

Mechanism: Retirement bonds represent a strategic tool for supply contraction, where KLIMA tokens are exchanged for carbon credits that are immediately retired. This process effectively removes KLIMA tokens from circulation, directly contracting the supply. The retirement of carbon credits through this mechanism also contributes to KLIMA's environmental objectives, making it a dual-purpose tool.

Pricing and Structure: The bonds are structured to offer a fair exchange rate for carbon credits, based on the time-weighted average market rate, with a maximum slippage cap and a flat fee contributing to the protocol's treasury. This structure ensures that the process is efficient and aligned with market values, making retirement bonds an attractive option for those looking to retire carbon credits at scale.

The Role of Retirement Bonds in Supply Contraction

Retirement bonds serve as the main variable in KLIMA's supply contraction dynamics. The volume of carbon retired through these bonds directly influences the rate at which KLIMA's supply contracts. This mechanism is crucial for balancing the inflationary pressures from supply expansion, ensuring that KLIMA remains a stable and sustainable currency within the carbon market.

Inflationary and Deflationary States

The balance between supply expansion and contraction defines KLIMA's inflationary or deflationary state:

• Inflationary State: Occurs when the rate of supply expansion (driven by the growth of the CM and tokenization of carbon) exceeds the rate of supply contraction (achieved through retirement bonds). In this state, the circulating supply of KLIMA increases, which could potentially dilute its value if not managed carefully.

• Deflationary State: Arises when the rate of supply contraction outpaces supply expansion. This scenario leads to a reduction in the circulating supply of KLIMA, potentially increasing its value and purchasing power over time.

Formula for Understanding Inflation and Deflation Rates

The relationship between KLIMA's supply dynamics can be conceptualized as follows:

Where:

• CM Growth Rate represents the rate at which the carbon market is expanding, influencing KLIMA's supply expansion.

• Retirement Bond Rate reflects the rate at which KLIMA tokens are retired through bonds, contributing to supply contraction.

You can view the rate of inflation or deflation, along with other important KLIMA metrics .

Enhancing KLIMA as a Store of Value

For KLIMA to enhance its role as a store of value, balancing these rates is crucial. Strategies to increase the attractiveness and utilization of retirement bonds can amplify supply contraction, countering inflationary pressures and stabilizing KLIMA's value. Additionally, aligning supply expansion closely with genuine market growth ensures that KLIMA's supply remains sustainable and its value reflective of underlying environmental assets.

In conclusion, retirement bonds are a cornerstone of KLIMA's supply contraction strategy, offering a direct mechanism to reduce circulating supply while supporting environmental goals. By carefully managing the dynamics between supply expansion and contraction, KLIMA can maintain its stability and utility as a currency in the evolving landscape of the carbon market.

Aggregator

Unified interface for consuming tokenized carbon credits. Allows the user to provide a variety of input tokens (e.g. USDC, KLIMA, sKLIMA, wsKLIMA) and retire from a selection of different carbon credit pools (e.g. BCT, MCO2).

• V1: 0xEde3bd57a04960E6469B70B4863cE1c9d9363Cb8

• V2:

  • More details can be found .

Bridge-Specific Retirements

Helper contracts for consuming credits from a specific carbon bridge or on-chain issuer.

C3

• V1:

Moss

• V1:

Toucan

• V1:

Retirement Storage

Simple storage contract for recording how much a given address has retired, as well as tracking reward points for using the KlimaDAO retirement aggregator.

• V1:

The KlimaDAO Auto Compounder manages liquidity pool tokens created on Aerodrome and optimizes them for compound interest effects. This can improve the yield performance of your position over time compared to manual compounding.

Additionally, 1% of your yield will be used to burn existing KLIMA tokens and retire carbon credits owned by KlimaDAO. By providing liquidity for the KlimaDAO ecosystem through the Auto Compounder, you grow your position in a more convenient way, reduce the amount of KLIMA tokens in circulation, and compensate for your personal or organizational carbon footprint automatically.

Since participating in liquidity pools can be challenging, this guide will provide step-by-step instructions on how to provide liquidity for the KlimaDAO ecosystem through the Auto Compounder app. A general overview of what liquidity pool tokens are can be found here.

Prerequisites

The KlimaDAO Auto Compounder is currently only operating on the Base blockchain. Therefore, you will need KLIMA tokens on Base as well as a different token to pair KLIMA with, e.g. WETH, USDC, or other supported tokens. An overview of all supported liquidity pairs can be found at .

You will also need a small amount of ETH on Base in your wallet to pay for transactions.

How to Stake

This guide uses the KLIMA/WETH pool as an example, but the same steps apply for all other token combinations as well.

• Visit and click the CONNECT button in the top right corner. Choose your wallet and confirm that you want to connect to the app.

• Click the Stake + button for the pool you want to deposit your tokens into.

• Once you click Stake +, you should see the Auto Compounder interface. Unless you already own liquidity pool tokens previously created on Aerodrome, you need to create some now. To do this, click the Deposit Liquidity button.

• You are now on Aerodrome’s website. As seen below, add the amount of WETH and KLIMA you want to stake. On the right side, click both Allow KLIMA and Allow WETH, if necessary. Sign both transactions in your wallet.

• Once the transactions are finished, click the Deposit button and sign the transaction in your wallet. This will create your liquidity pool tokens.

• You now notice the Stake Your Deposit button on Aerodrome’s website. DO NOT CLICK IT. Instead, return to the Klima Auto Compounder.

• For the pool you selected earlier, you should now see a balance in your wallet like on the screenshot below.

• Click the MAX button in the Amount to Stake section (or enter a value not greater than your Balance), then click the green STAKE button below.

• A new window will pop up. Click APPROVE first, sign the transaction, and wait for this process to finish. Then click STAKE again and sign this transaction as well.

• If everything works as expected, you will see a Success! message.

• Done! If you click YOUR POSITIONS now, you will see your staked tokens and their US-Dollar nominated value.

Where does the yield come from?

Aerodrome issues AERO rewards to liquidity pool providers who stake their liquidity pool tokens on the Aerodrome Platform. More information can be found at https://aerodrome.finance/docs#.

What is the advantage of using the Auto Compounder over Aerodrome’s native offering?

On Aerodrome, you have to manually claim your AERO emissions as they accumulate over time. Depending on your goals, this can be sub-optimal since if you want to grow your position by re-staking your earned AERO tokens, you would have to go through this process manually, which can quickly become a tedious task.

KlimaDAO’s Auto Compounder accesses your accumulated AERO rewards, converts them to the tokens of your position, and re-stakes them automatically. Through compound interest, this can improve the overall yield performance of your position.

How often is the yield compounded?

Currently, your yield is compounded once every 24 hours.

The app sometimes mentions vault tokens. What are they?

Vault tokens represent your share of the total vault. This number will increase or decrease (depending on the size of your position relative to the total vault) whenever you stake or unstake.

As soon as you stake the liquidity pool tokens in the Auto Compounder, these tokens get exchanged for vault tokens. Once you unstake, your vault tokens are converted back to liquidity pool tokens again, letting you claim your liquidity token pair.

The amount of vault tokens I staked is not growing. Why?

You might notice that the amount of vault tokens is always constant. This is working as intended; your vault tokens balance will always remain the same (unless you stake or unstake), while the amount of tokens you see under BALANCE will slowly increase over time as the Auto Compounder uses your AERO tokens to grow your position.

What is my balance?

The balance of your staked position includes your staked liquidity pool tokens plus the total yield accrued over time, expressed as a US Dollar value.

Are there any fees attached to using the Auto Compounder?

1% of the accrued yield is used to burn existing KLIMA tokens and retire carbon credits owned by KlimaDAO. However, in contrast to manual compounding, all transaction costs for automatic compounding are paid for by KlimaDAO.

How does the 1% fee to burn KLIMA work?

When you stake using the Auto Compounder, you will see this message on the form:

When the yield is compounded every 24 hours, 1% is automatically redirected to a wallet address on .

In regular intervals, this yield is used to perform retirements, which are executed on Base and used to retire carbon tokens on Polygon.

All of this is performed by KlimaDAO in the background. As a user, you do not need to take any manual action.

If I unstake from the Auto Compounder, am I still earning AERO rewards?

If you decide to exit the Auto Compounder, unstake, and do nothing else; you are only earning the trading fees from the pool, not AERO rewards. On the , your unstaked position will show as available for Stake. Stake your deposit again on Aerodrome to start earning AERO rewards; just note that these will not auto compound. See for the benefits of using the KlimaDAO Auto Compounder.

Unit of Account

A unit of account is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. It is one of the key functions of money, allowing people to compare the costs of different goods and services and to track financial transactions with consistency. For an asset to serve effectively as a unit of account, it must possess certain qualities:

Qualities of a Good Unit of Account

• Stability: The value of the unit of account should be stable over time, allowing for reliable and consistent pricing of goods and services.

• Widespread Acceptance: It must be widely accepted by participants within the market it serves, ensuring that it can be used universally for pricing and transactions.

• Divisibility: The unit should be easily divisible to allow for precise pricing and transactions of varying sizes.

• Uniformity: Each unit of account must be uniform, meaning each unit is the same as every other unit, to ensure consistency in pricing and valuation.

• Resistance to Counterfeiting: To maintain trust and stability in its value, the unit of account should be difficult to counterfeit or replicate unlawfully.

KLIMA as a Unit of Account in Environmental Markets

KLIMA, with its intrinsic link to carbon credits and the environmental market, has the potential to become a significant unit of account within this specialized financial ecosystem. Here’s how KLIMA aligns with the qualities of a good unit of account and the steps it can take to solidify this role:

1. Stability Through Supply Management: KLIMA's innovative supply management mechanisms, including the alignment of supply expansion with the growth of the Carbon Market (CM) and the use of retirement bonds for supply contraction, contribute to its stability. By managing its supply in response to real-world environmental asset growth and demand, KLIMA can offer a stable unit of account for the environmental markets.

2. Building Widespread Acceptance: For KLIMA to be widely accepted as a unit of account, it must continue to build partnerships and integrations within the environmental and financial sectors. Increasing its presence and utility in carbon trading platforms, environmental projects, and sustainability initiatives will be key.

3. Ensuring Divisibility and Uniformity: As a digital asset, KLIMA inherently possesses divisibility and uniformity, allowing for precise and consistent valuation of environmental assets and transactions. This digital nature ensures that KLIMA can be used for transactions of any size, enhancing its utility as a unit of account.

As the world increasingly focuses on sustainability and the valuation of environmental assets becomes more critical, KLIMA is well-positioned to serve as a unit of account in the environmental markets. Its stability, divisibility, and the trust and security offered by blockchain technology make it an ideal candidate. By continuing to build acceptance and demonstrating its utility in environmental valuation, KLIMA can achieve widespread recognition as a standard unit of account, facilitating clearer, more consistent financial transactions within the growing green economy.

What are carbon markets?

The objective of carbon markets is to reduce greenhouse gas (GHG, or “carbon”) emissions cost-effectively by setting limits on emissions and enabling the trading of emission units, which are financial instruments representing emission reductions. Trading enables entities that can reduce emissions at lower cost to be paid to do so by higher-cost emitters, thus lowering the economic cost of reducing emissions.

Launch and early history

Initial Supply

The initial goal was not to find a stable carbon price. It is to provide an intuitive way for Web3 users to engage with the carbon markets, vote on governance proposals that shape the Digital Carbon Market, and be rewarded for participation in the protocol. Through policy and voting, the protocol was continually tuned to track developing trends in carbon markets over time.

The second version of the KlimaDAO retirement tooling is an implementation of an EIP-2535 multi-facet proxy that allows for a unified experience against one contract address while utilizing logic from multiple other contracts. In addition, the Generalized Retirement developer experience is made more intuitive as certain parameters were abstracted away.

All facets and internal libraries share a common storage space using the AppStorage pattern.

Main diamond contract is deployed to 0x8cE54d9625371fb2a068986d32C85De8E6e995f8 on Polygon.

• View on Louper

• View on

There are currently two main types of facets within the Diamond.

• Generalized Retirement

• Bridge Specific Tooling

The General Retirement functions should be sufficient for all retirement calls. However, Bridge Specific Tooling becomes useful for Redeem functions and allows for explicit specification of the retiringEntityString , set by default to "KlimaDAO Retirement Aggregator".

All retirement transactions initiated through this contract emit the following event.

Klima Foundation

As of KIP-53, KlimaDAO transitioned its underlying legal structure to a foundation model.

A number of benefits were realized by the project through this transition, as foundations offer unique operational and regulatory advantages:

• a more stable and enduring structure for KlimaDAO's goals, ensuring long-term impact and transparency.

• the possession of their legal identity, enabling them to hold assets, execute contracts, and engage in legal transactions independently, thereby simplifying governance, partnerships and decision-making processes.

• simplified KYC and KYB processes affording KlimaDAO the flexibility to integrate more effectively into the wider, dynamic business environment within the carbon and environmental commodity markets.

• reduced legal uncertainty during complex financial transactions.

• a continued and compliant commitment to KlimaDAO’s decentralized nature, which also allows for its dynamic governance process to continue evolving.

The transition to a foundation yielded several strategic advantages, allowing it to inherit the DAO’s existing asset management directives while streamlining governance, compliance, and operational efficiency.

An Overview of the Klima Foundation

The primary mission of the Klima Foundation remains the same as that of the DAO historically: to oversee a digital initiative focused on enhancing global decarbonization efforts. The Klima Foundation aspires to revolutionize carbon markets, environmental commodity markets and potentially establish a novel carbon-based monetary system.

The Foundation's primary purposes include promoting blockchain-related technology for carbon markets, supporting KLIMA Improvement Proposals (KIPs), producing educational materials related to decentralized autonomous organizations (DAOs) and blockchain technology, and facilitating commercial agreements aligned with these goals.

Alongside the generic and general initiative, the Klima Foundation is working on the development of the KLIMA DAO platform, operated through smart contracts. This platform empowers the KLIMA DAO community to collectively shape its future through decentralized voting. The Klima Foundation also recognizes and endorses contributions from individuals in strategy, IT, and law to promote environmental and climate policies.

The governance structure of the Klima Foundation will include a Board of Directors and the Guarantee Committee.

The President of Klima Foundation

The Board of Directors is overseen by the President of the Board. The president of the Board is ratified via Community vote, nominated by DAO contributors, and may be removed via KIP. The President will legally represent the DAO, and ensure that communication between its various stakeholders is efficient and effective.

The Board of Directors

The Board itself holds the powers for the operational management of the Foundation and plays a pivotal role in determining objectives, resource allocation, and financial management, analogous to the role Klima DAO’s Core and Stewards have previously fulfilled at the DAO .

The directors are not required to be members of the Foundation or residents of its legal jurisdiction, allowing for a diverse and global representation. Directors serve at the pleasure of the appointing entities and are subject to removal by decentralized vote. They, whether acting individually or collectively, are entrusted with a fiduciary duty to uphold the best interests of the Foundation and the Protocol.

KlimaDAO’s founders will remain key stakeholders of the project, maintaining oversight of the Foundation and the DAO, and provide non-binding opinions regarding its progress to the Board and the Community – irrespective of whether they choose to continue on as a contributor of the project.

The Guarantee Committee

The Guarantee Committee is an office held within the Foundation, with the intention of ensuring robustness and integrity around KlimaDAO’s ongoing interactions with the carbon markets. Specifically, the Guarantee Committee is tasked with the thorough examination of RFCs brought forth from the market with regards to KlimaDAO’s carbon financing agreements.

The Guarantee Committee members are therefore expected to have significant knowledge and experience within the climate finance and environmental market domains. This Committee is positioned to shepherd the DAO’s initiatives within the climate finance space, and mitigate risks associated with these activities, considering factors such as technical, economic and reputational risks, and conflicts of interests that may arise within the market. The Community will have the opportunity to affirm new appointments to the Guarantee Committee, via a KIP.

The Committee's authority is exercised with the sole intention of advancing the DAO's interests, ensuring that its operations are not only efficient but also reflective of its core mission. Members of the Guarantee Committee are appointed for a tenure of three years, with the possibility of reappointment, signifying a long-term commitment to the DAO's vision and stability.

Therefore, the Guarantee Committee will have the ability to make recommendations to the community regarding carbon financing initiatives – however, it will not have the ability to make decisions on behalf of the community (i.e. a KIP will still be required to ratify financing agreements).

It is anticipated that the Guarantee Committee will at times work with the Klima Review Committee to progress or raise concerns around RFCs and KIPs specifically pertaining to climate finance.

Organs of the DAO

• Foundation President

• Foundation Directors

• Protocol Team: key contributors most of whom have been working on KlimaDAO since before launch. Establishes strategic vision and provide expert input on carbon markets and DeFi. Guides the DAO's decentralization plan and ensures functional teams are aligned on priorities, collaborate productively, and deliver on their objectives.

Official Subgraphs

Ecosystem Subgraphs

GitHub repo

General metrics concerning the KlimaDAO protocol and treasury

Metrics concerning existing KLIMA token supply locked in another contract, either temporarily or permanently

Metrics on addresses that have interacted with tokenized carbon credits supported by the KlimaDAO ecosystem, most notably balances over time

Metrics on swap activity of tokenized carbon credits: prices, volumes, slippage, etc.

Bridged Carbon Subgraphs

Detailed data on carbon credits tokenized onto the Polygon blockchain

Detailed data on carbon credits tokenized onto the Ethereum L1 blockchain

Off-Chain Carbon Registries

Verra

Verified Carbon Units:

Gold Standard

Credit blocks:

Registered projects:

American Carbon Registry (ACR)

Registry Reports:

Retired Credits Report:

Climate Action Reserve (CAR)

Public Registry:

Retired Offset Credits:

Clean Development Mechanism (CDM)

Registry:

Cancelled CERs:

World Bank Climate Warehouse

Envisioned to be a .

Still under development, it is currently running as a Proof-of-Concept on Chia Network:

What is KlimaDAO?

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.

Carbon.fyi Retirement Link

Current state: live in production

Developed by Offsetra, carbon.fyi brought user-friendly carbon emissions calculation to the Ethereum L1 blockchain, but originally the only way to source credits to compensate for your emissions was through an off-chain retailer.

Now, with the emergence of the tokenized carbon ecosystem, the end page of the calculation process offers users the ability to go directly to the KlimaDAO retirement aggregator, with their retirement details prefilled via query parameters.

SushiSwap Green Fee

Current state: deprecated

Since launch, KlimaDAO's primary DEX has been SushiSwap on Polygon. Given their public governance process, they made an obvious first partner to integrate tokenized carbon credits into the functioning of a DeFi protocol.

In June of 2022, proposing a first-of-its-kind "Green Fee" integration, where each time a user swaps, a small additional fee is added that gets swapped for carbon credits and retired on behalf of the user.

This feature has been implemented in partnership between the KlimaDAO and Sushi teams. You can follow along with the open-source code being written by KlimaDAO contributors in our . See for more information about how to use the SushiSwap Green Fee.

Lens Protocol BCT Retirement CollectModule

Current state: feature implemented, awaiting deployment by Lens Protocol team

As part of a bounty for Lens Protocol, KlimaDAO contributors built a that allows content publishers to choose to allocate any fees generated by other users toward retiring tokenized carbon credits.

While the initial implementation retires credits from the BCT pool, the implementation utilizes KlimaDAO's so it will be straightforward to create additional modules that retire other tokenized carbon credits, such as or . Future work on this module would extend it to allow selectively retiring a particular project from the pool dynamically (i.e. configured by the publisher using the module) - assuming the underlying Lens data model allows such dynamic configuration of modules.

Rings of Retirement

Current state: live on mainnet; detailed documentation and refreshed artwork pending

An experiment in minimalistic worldbuilding, the are a set of NFTs, with one Ring per carbon credit token supported by the KlimaDAO retirement aggregator.

Each Ring can be claimed from the current holder by any address that has retired more of the corresponding carbon credit token for that Ring than the current holder. This simple gamified element encourages users to retire carbon credits, with an increasing amount of retirements required each round to participate in the game. This regenerative mechanism contracts with the fixed (or even diminishing) amount of retirements from e.g. a corporation's net-zero pledge.

The Rings provide a concrete example of on-chain carbon game mechanics, that other builders can expand and build upon to incentivize carbon credit retirement or other regenerative activity in their creations.

Climate-Positive NFTs: CO2_Compound

Current state: live on Polygon mainnet

As part of the program, KlimaDAO supports a .

One in particular is exceedingly elegant and demonstrates the utility of the KLIMA token: . This piece embedded a certain amount of sKLIMA into the NFT contract itself upon deployment, but the contract has no withdrawal function, so the tokens are effectively locked inside the NFT.

Since sKLIMA accumulates a greater number of tokens over time through rebases, and since the KlimaDAO treasury will defend the intrinsic value backing each KLIMA token, as long as the KlimaDAO treasury continues to grow then the NFT supports the accrual of more and more carbon credits into the treasury, amplifying the climate-positive impact of the initial amount of KLIMA deposited into the contract.

Carbon Retirement Bin

Current state:

Launched at the request of BasinDAO, this contract acts as a "burn address" of sorts for carbon. The contract's sole function is to retire the carbon tokens it holds via the KlimaDAO Retirement Aggregator with the beneficiary set to a popular burn address as well as the beneficiary name and msg "0". This popular burn address was chosen over 0x0 because the safeTransfer used to send some forms of retirement certificate NFTs will cause an error.

The Responsible Use of Carbon Credits

There has been much criticism of carbon credits in the past, as well as examples of greenwashing by companies and projects that violate best practices. This needs to change if carbon credits are to play a major role in helping us decarbonise. In short, companies and individuals need to be educated on the responsible use of carbon credits.

First of all, note that 1:1 "offsetting" of emissions is only one motivation for retiring carbon credits (i.e. permanently destroying and claiming the underlying environmental benefit). Parents may retire carbon far in excess of their actual emissions, simply because they want to financially support climate action so their children inherit a stable, thriving planet - not 1:1 with measured emissions. On the other hand, some companies may choose to retire carbon in excess of their 1:1 net-zero goal to differentiate themselves.

That said, retiring carbon

Current Governance Process

KlimaDAO and the ecosystem it operates in is maturing rapidly. Talent is being onboarded to contribute to, and influence the direction of the protocol's growth. The community is expanding, and bringing a range of perspectives, from DeFi natives and carbon market experts, to people who are getting involved with their first DAO. The markets that KlimaDAO operate in (DeFi, Digital Carbon Markets (DCM) and the Voluntary Carbon Markets (VCM)) are also evolving at breakneck speed.

To properly leverage the knowledge at the DAO's disposal, and build out the protocol for long-term success in the interest of all those who have a stake in its growth, KlimaDAO has established a more formal approach to governance decisions which is being used today, discussed below.

Discord Community

Discord serves as the primary informal medium for community discussion. There are a wide variety of channels where you can discuss everything from governance proposals to the technicalities of the protocol.

KlimaDAO’s Discord server is regularly trafficked by the KlimaDAO Foundation Directors, Protocol team members and other DAO contributors where you can seek information and share your thoughts directly in conversation.

Hosted Events

KlimaDAO hosts regular office hours, policy chats, and AMA (“Ask Me Anything”) sessions via Twitter spaces and voice chat in Discord. During office hours (check the events section in the Discord), the Protocol team delivers high-level updates on the DAO’s progress, and anyone is free to ask questions either via voice or in text chat for as long as time allows.

Formal Discussion Forum

The KlimaDAO Forum is the hub for more formal discussion and debate. Request for Comment (RFC) periods begin here, where people can make their thoughts heard on the latest KlimaDAO Improvement Proposals (KIPs). An RFC can originate internally, from a community member, or from third parties such as carbon project developers seeking funding or new carbon bridges who wish to integrate into the KlimaDAO ecosystem.

After the RFC, if the community is on-board with the proposal, a formal KIP will be drafted by the policy team, which will be posted on the forum with an informal poll - acting as a temperature check to suggest if the proposal may need alterations or further discussion.

Proposals can also originate directly from the DAO without an RFC, including for: - major reward rate adjustments - frameworks for DAO operations such as contributor compensation

Note: only the policy team can post KIP temperature check votes in the “Proposals” section of the forum, but anyone can open a general discussion topic or post an RFC in the “General” section.

The Guarantee Committee

The Guarantee Committee is an office held within the Klima Foundation, with the intention of ensuring robustness and integrity around KlimaDAO’s ongoing interactions with the carbon markets. Specifically, the Guarantee Committee is tasked with the thorough examination of RFCs brought forth from the market with regards to KlimaDAO’s carbon financing agreements.

The Guarantee Committee members are therefore expected to have significant knowledge and experience within the climate finance and environmental market domains. This Committee will be positioned to shepherd the DAO’s initiatives within the climate finance space, and mitigate risks associated with these activities, considering factors such as technical, economic and reputational risks, and conflicts of interests that may arise within the market. The Community will have the opportunity to affirm new appointments to the Guarantee Committee, via a KIP.

The Committee's authority is exercised with the sole intention of advancing the DAO's interests, ensuring that its operations are not only efficient but also reflective of its core mission. Members of the Guarantee Committee are appointed for a tenure of three years, with the possibility of reappointment, signifying a long-term commitment to the DAO's vision and stability.

Therefore, the Guarantee Committee will have the ability to make recommendations to the community regarding carbon financing initiatives – however, it will not have the ability to make decisions on behalf of the community (i.e. a KIP will still be required to ratify financing agreements).

It is anticipated that the Guarantee Committee will at times work with the Klimate Review Committee to progress or raise concerns around RFCs and KIPs specifically pertaining to climate finance.

Snapshot Voting

After passing the informal poll on the forum, official KIPs will be published on Snapshot by the Protocol Team for a formal, on-chain vote by KLIMA token holders.

Voting power on Snapshot is determined by the amount of KLIMA owned in a one-to-one ratio. All forms of KLIMA (such as staked and wrapped) are eligible to vote, except if it is deposited into another DeFi platform or smart contract.

For comparison, larger and less urgent changes, such as significant reward rate adjustments, or adding new assets to the treasury, will require KIP votes.

In the event that the policy team or Protocol Team wishes to reserve a new power, such that a KIP vote is not required for a specific action, this change will itself be subject to a vote.

Promises and Perils of Decentralized Governance

It’s in the name, KlimaDAO is a DAO, so it’s fully decentralized, right?

Well, while full decentralization is the long-term goal that KlimaDAO will strive towards, launching a new protocol and immediately decentralizing everything is a recipe for disaster. At launch, complex protocols like ours must be able to react swiftly and decisively to changing market conditions in order to ensure long term success, and as such are vulnerable to poor management, fumbled execution and delayed decision-making.

In mid-2021, a small team of carbon market professionals and blockchain entrepreneurs conceived of the KlimaDAO protocol as a mechanism to create transparent, liquid carbon markets, while making it more expensive to pollute and enabling new methods of carbon capture to become economically viable.

When laying the foundations of the protocol, the original Core Team made informed decisions based on their professional experience and expert knowledge of both the Olympus protocol, which inspired KlimaDAO, as well as the legacy carbon markets that we aim to bring on-chain. The shared mental model they developed is encapsulated in the KlimaDAO manifesto, and they shepherded the protocol to launch.

As the protocol began to take shape, the Core Team brought in early contributors to advise on policy decisions, help manage the community, and set up the DAO’s structure and organization. At this early stage, KIPs were formulated by the Core Team and posted directly on since there was not yet a forum for discussion (only Discord).

By December of 2021, the DAO formally opened up and began accepting outside applications for contribution across all departments. At the time of writing, there are approximately 100 contributors, with more being onboarded regularly. It has expanded the KIP process to further emphasize community input by adding a Request for Comment period on the KlimaDAO where everyone can question, criticize, or recommend proposals that are less time-sensitive.

As any new protocol with ambitions of decentralization gets off the ground, the community must take on more responsibility. Gradually the vision of the founding team and the shared mental model of the protocol are internalized by the community, which diminishes the risk of uninformed token votes or a poorly worded proposal throwing the protocol off the rails.

Initial State

Since the protocol launched, the Core Team has retained access to contracts and wallets behind 3-of-5 Gnosis Safe multisig wallets - meaning at least 3 Core members must agree to approve a transaction out of 5 total signers. With the , these multisigs are now controlled by legally obligated representatives of Klima Foundation.

The initial system required a great deal of trust in the Core Team to shepherd the protocol to maturity. Thus, it is important to have a transparent governance process to guide the Core Team’s decisions with ample community input, as well as prepare the community to eventually govern more aspects of the protocol as it is gradually decentralized. Over time, the governance process has continued to mature and promote further decentralization.

Per the passage of KIP-19, a formal Decentralization Working Group (DWG) was established as of Q2 2022. Made up of representatives from every level of DAO participation, from Core Team to community members, this group , as well as a set of in March 2023. These recommendations led to many KIPs including and .

Future Vision for Decentralized Governance

Decentralization is a spectrum rather than a binary. Few, if any, DAOs begin fully decentralized, and KlimaDAO is no exception. Decentralization is a journey, an ideal that DAOs must strive toward. KlimaDAO has made great progress on this journey, but it is still early days.

One potential issue with limiting KIP publication to the Protocol team and DAO contributors is that the voting process can turn into a “rubber stamp” of changes planned centrally. Over time, our goal is to decentralize as many governance functions as possible, to minimize any dictatorial power exerted by the DAO contributors or Protocol Team and ensure that votes are meaningful.

However, not all governance functions are amenable to the same systems - for instance, one-to-one token voting can be gamed via bribes or exploited by whales to benefit themselves at the expense of the protocol thus the trial established in KIP-40. Likewise, opening up publication of KIPs on Snapshot to any holder of KLIMA could turn Snapshot into a sprawling mess of poorly structured proposals.

As we work to decentralize more aspects of the protocol, we will research best practices and seek community input on the optimal governance system for each function.

A potential solution to responsibly decentralize KIP publication rights is a "stewardship" model, where representatives are elected by token holders to a committee that has publication rights to Snapshot, controlled by a dedicated multisig that requires some level of consensus among the elected representatives before the proposal is published.

One example of a governance function that we already plan to decentralize (eventually) is the reward rate parameter that contributes to setting the staking . At this time, the Policy team actively manages the reward rate and proposes individual changes via KIPs within a framework laid out in KIP-3. Once the protocol matures and the AKR stabilizes at a more sustainable level, we can turn control over the reward rate over to an on-chain “gauge” that the community votes to change, with changes automatically implemented via a smart contract.

Further Reading

AKR

Annualized KLIMA Rewards is the annualized reward rate in percentage terms, taking into account autocompounding over one year assuming a constant reward yield and constant epoch length.

Note that AKR is quoted as a ballpark estimate and does not guarantee precise future returns. AKR will go down periodically in accordance with KIP-3 and fluctuates along with Reward Yield due to changes in % of KLIMA staked and Polygon blocktime variability.

NOTE: AKR was previously called APY.

APR

Annual Percentage Rate, is the annualized reward rate without taking the effect of compounding into account.

BCT

BCT (Base Carbon Tonne) is a carbon pool governed by KlimaDAO, which accepts any TCO2, independent of project type (e.g. forestry carbon offsets, renewable energy carbon offsets or methane capture offsets). BCT was developed for the launch of KlimaDAO, and as of is managed and owned by KlimaDAO. At this time, the only requirements for TCO2s to be eligible for deposit into the BCT pool are: the TCO2 is verified by Verra, and has vintage later than 2008 (there is also one ).

CC

Carbon Custodied, the total amount of tokenized carbon offsets held by the treasury to back KLIMA supply. Includes all carbon offset reserves (e.g. naked BCT, MCO2), as well as a marked down portion of KLIMA/carbon liquidity pairs.

This metric was formally referred to as "RFV" or "risk-free value" in the context of the Olympus protocol, whose backing is dollar stablecoins. Since carbon offsets are volatile assets whose price can vary over time, this value is not actually "risk free" in the KlimaDAO protocol.

The carbon is considered "custodied" because, if incoming reserves were to drop to 0 and the protocol simply paid out all remaining staking rewards, CC would be the final supply of KLIMA, backed at IV of 1 tonne of carbon offsets. So, in this endgame scenario, each 1 KLIMA would end up being a claim on 1 tonne of carbon offsets from the treasury - thus CC/KLIMA is the estimated number of carbon offset tonnes that a holder of 1 KLIMA today would have after all staking rewards are paid out if they remain staked until the end.

C3 Token

A utility token for the . It is distributed as a reward to users of the protocol that stake, bridge or provide liquidity. C3 can be locked for veC3, which is eligible to vote on C3 protocol decisions and gauge weights. See the for more details on the C3 token.

C3T

C3 Tonne (C3T) is the general term for fungible tokenized carbon offsets bridged via C3. When you fractionalize the C3VCU NFT received after bridging, the resulting C3T ERC20 token will have C3T- as a prefix, followed by an information-rich name that includes the registry of origin, the project, and the vintage.

DAO

Decentralized Autonomous Organization, is a governance mechanism for making decisions in a more trustless and collaborative way. Voting rights are often bound to a governance token.

DCV

Deflation Control Variable, is the scaling factor at which protocol defined buy pressure changes. A higher DCV means more buy pressure from the protocol, resulting in a higher deflation. A lower DCV means less buy pressure from the protocol, resulting in a lower deflation.

EVM

Ethereum Virtual Machine, is a state machine in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has one and only one canonical state, and the EVM is what defines the rules for computing a new valid state from block to block.

KIP

Klima Improvement Proposal, the principle mechanism for DAO governance. Most KIPs begin as posts on our , either proposed by DAO contributors, sourced from the community, or brought forward by a third party (typically to propose a partnership).

All KIPs must pass a vote by token holders on Snapshot prior to implementation - see our for more details on the KIP lifecycle.

KI

Klima Infinity is a set of products and features built on top of the core protocol, geared toward scaling the traditional by empowering organizations and individuals to quickly source and retire tokenized carbon credits, to become “climate positive”.

klima

The word for "climate" (in Greek and German and many other languages).

KLIMA

The primary KlimaDAO token. Each KLIMA is backed by at least one tonne of carbon locked in the KlimaDAO treasury. KLIMA has an intrinsic value underpinned by the value of the carbon reserves. KLIMA is an ERC-20 token originally lauched on the Polygon PoS network.

MC

Market capitalization - total market value of all KLIMA tokens in existence KLIMA price * KLIMA supply

MCO2

Moss Carbon Credit (MCO2) is a relatively homogenenous, centrally managed pool of tokenized Verra . Moss created it in August 2020, by curating REDD+ projects in the Amazon Rainforest (one in Peru, five in Brazil). MCO2 was the first tokenized carbon credit to be listed on major centralised exchanges like Gemini and Coinbase, and the reconciliation of its ledger pool is done in real time by crypto auditor Armanino.

More information is available on the .

NCT

NCT (Nature-Based Carbon Tonne) is a Toucan Protocol carbon pool, which accepts TCO2 from nature-based methodologies such as avoided deforestation or afforestation. See for the detailed requirements for pooling TCO2 into NCT.

POL

Protocol Owned Liquidity, is the amount of LP the treasury owns and controls. The more POL the better for the protocol and its users.

Reward Rate

Reward rate is the configured percentage of KLIMA distributed to all stakers on each rebase relative to the total supply. The reward rate is precisely set by the policy team.

Reward Yield

Reward yield refers to the actual amount of KLIMA received by each staker on each rebase. The reward yield is a rough target from a policy point of view. It can almost never be maintained precisely due to fluctuating percentage of KLIMA staked and variabilities in Polygon blocktimes.

RFV

Risk Free Value - this term has been deprecated in favor of

SLP

Sushiswap Liquidity Provider, is the token received when providing liquidity on Sushiswap.

Staking

Market participants can deposit their KLIMA tokens in the staking contract to receive additional KLIMA as reward in return. These rewards are distributed via rebasing of the staked token (sKLIMA), which can be unstaked at any time to receive an equal amount of KLIMA.

TCO2

Toucan Carbon Tokens (TCO2) is the general term for fungible tokenized carbon offsets bridged via Toucan. When you fractionalize a BatchNFT received after bridging, the resulting TCO2 ERC20 token will have TCO2- as a prefix, followed by an information-rich name that includes the registry of origin, the project, the vintage, and so on. More information on the tokenization process can be found in the .

Tokenized Carbon Asset

A Tokenized Carbon Asset (TCA) refers to a carbon asset (e.g. voluntary carbon offset) brought onto the blockchain. TCAs are usually represented as an NFT for bridging purposes, since carbon assets are typically only semi-fungible: each asset has attributes such as vintage, methodology, and country of origin. Tokenized carbon can refer to a single unit (e.g. one carbon offset) or a batch of assets (e.g. a certain number of carbon offsets from a specific project and vintage period). These NFTs can be deposited into Carbon Pools to create fungible ERC-20 tokens representative of that tokenized can that meets those pool's requirements.

TMV

Treasury Market Value - the current market value in dollars of all assets held in the treasury, including both reserves and all LP tokens.

TTC

Treasury Total Carbon - total carbon offset tonnage held by the KlimaDAO treasury, including both carbon offset reserves and the full value of the carbon assets in all carbon-paired LP pools (both KLIMA/carbon and stablecoin/carbon pairs).

Note that this value fluctuates up or down as carbon offsets are sold into or bought out of the liquidity pools.

TWAP

Time Weighted Average Price, is the average price of an asset over a specified time. TWAPs are used to represent the fair value of an asset as defined by the market.

VCU

Verified Carbon Unit (VCU) is a carbon credit issued under the Verra Carbon Standard (VCS). Under the VCS Program, projects are issued unique carbon credits known as Verified Carbon Units or VCUs. Each VCU represents a reduction or removal of one tonne of carbon dioxide equivalent (CO2e) achieved by a project. VCUs are characterized by a number of which are confirmed through the project process. VCUs are ultimately purchased and retired by an end user as a means of offsetting their emissions. All VCU issuance and retirement records are publicly available on the .

VCM

The Voluntary Carbon Market is a key tool in the fight against catatrophic climate change. The VCM enables consumers and organizations to fund of projects with real-world climate impact via modern financial market.

The VCM has been around for decades, but has long suffered from lack of access, opacity, illiquidity, and high transaction fees. KlimaDAO aims to change that by migrating the VCM on-chain, where all market participants can benefit from the advantages of distributed ledger technology.

Common Retirement Parameters

While there are multiple functions available to call based on a user's needs, the base information needed to carry out these transactions is similar among them. The common parameters used by both the exact carbon and exact source functions are as follows:

All retirement functions return the latest retirement index for the transaction just completed.

Retire Exact Carbon

Additional parameter definitions:

Retire Exact Source

There are no additional parameters for these functions. They simply transfer in the amount of the source token, and then use all of it to swap (if needed) and retire the specified carbon.

View Functions

The following guide is written for V1 of the Retirement Aggregator. To learn more about V2, see V2 - Diamond. For an in-depth review of the retirement aggregator V1 smart contract, see Retirement Aggregator V1 Contract Guide.

Retiring Carbon via Solidity

Requirements

• Get some MATIC to pay for gas fees

• Get some KLIMA tokens to spend to retire carbon

• Get the contract addresses from here:

1. Transfer your source token to your contract

You can transfer KLIMA tokens to your contract via web3.js and JSON RPC (like using Metamask) or choose to implement a deposit function that calls KLIMA's standard ERC20 approve and transfer functions to allow your contract to transfer users' KLIMA tokens to your contract.

2. Approving the Aggregator contract

Your contract's function calls the KLIMA token's standard ERC20 approve function to allow the Aggregator contract to withdraw KLIMA tokens from your contract. In the example below, an interface named IERC20 to interact with the KLIMA token smart contact.

3. Retiring carbon with the Aggregator contract

Your contract's function calls the Aggregator contract's retireCarbon function. In the example below, an interface named IKlimaRetirementAggregator is used to interact with the Aggregator contract.

To fully understand the parameters for the Aggregator contract's functions, we recommend reviewing .

Example 1

Use KLIMA to retire BCT with one beneficiary address, name, and retirement message

Example 2

Use USDC to retire a specific amount of your choice of carbon token (BCT, NCT, UBO, NBO, MCO2) allowing the caller to set the beneficiary information

V2 of the Retirement Aggregator has been deployed!

KlimaRetirementAggregator

Deployment

The Polygon mainnet master contract for V1 of the Retirement aggregator is deployed to

Due to the reliance on third party contracts and liquidity pairs on AMMs, it is suggested to test integrations using a forked Polygon mainnet environment. Commonly used tools for this are or .

State Variables

Addresses common across the product are stored in the master contract:

Mappings used to flag and track different tokens and addresses:

• isPoolToken: address => bool returning whether a pool token address has been added to the master contract.

• poolBridge: address => uint returning which index number related to the bridge that a pool uses.

• bridgeHelper: uint => address returning the address of the specific helper contract for the given bridge index.

Events

AddressUpdated(uint, address, address)

• uint addressIndex (found in setAddress)

• address oldAddress

• address newAddress

PoolAdded(address,uint)

• address poolToken

• uint bridge

PoolRemoved(address)

• address poolToken

BridgeHelperUpdated(uint, address)

• uint bridgeID

• address helper

Functions

Common parameters for retireCarbon functions:

retireCarbon

Transfers and uses tokens from caller's wallet to swap to the pool if needed and then retire the pool tokens.

retireCarbonFrom

Same function as retireCarbon, but does not initiate the transfer of the source tokens to the aggregator. Source tokens must be transferred prior to calling retireCarbonFrom.

• Additional parameter:

  • address _initiator: Address where any trade dust should be returned.

retireCarbonSpecific

Allows a user to specify the underlying offset they choose to retire. This action is subject to any fees imposed by a bridge for the selective redemption of a pool token.

• Additional parameter:

  • address[] _carbonList: Array of addresses used to redeem pool tokens in order.

retireCarbonSpecificFrom

Similar to retireCarbonFrom, this operates the same way and allows a caller to transfer the needed source tokens to the aggregator prior to calling for specific retirement.

• Additional parameters:

  • address[] _carbonList: Array of addresses used to redeem pool tokens in order.

  • address _initiator: Address where any trade dust should be returned.

getSourceAmount

This function calls the specific bridge helper for the supplied pool token and returns both the source and carbon amounts. Parameters are the same as if you were going to use a retireCarbon function call.

Return Values:

• uint256 sourceAmount: The total amount of source tokens needed.

• uint256 carbonAmount: The total amount of carbon tokens needed or used.

getSourceAmountSpecific

This function does the same thing as getSourceAmount, but also factors in any pool redemption fees incurred by performing a selective retirement.

Return Values:

• uint256 sourceAmount: The total amount of source tokens needed.

• uint256 carbonAmount: The total amount of carbon tokens needed or used.

KLIMA

KLIMA is the primary currency token of KlimaDAO. Backed by carbon credits, KLIMA is the key liquidity pair for the Digital Carbon Market.

• V1: 0x4e78011Ce80ee02d2c3e649Fb657E45898257815

sKLIMA

sKLIMA is the staked form of KLIMA. This allows stakers to gain rebasing rewards.

• V1:

wsKLIMA

wsKLIMA is the wrapped, staked version of KLIMA. This allows you to get the rebasing rewards of sKLIMA, while having a static balance in your wallet.

• V1:

aKLIMA

aKLIMA was Alpha KLIMA, and was given to the LBP participants. This was migrated 1:1 to KLIMA once the protocol was live.

• V1:

alKLIMA

alKlima is Alchemist KLIMA, and was given to users participating in interim Crucible staking program for aKLIMA. This was traded 1:1 to KLIMA once the protocol was live.

• V1:

pKLIMA

pKLIMA is a supply-vested KLIMA derivative token given to stakeholders, advisors, core team, and the DAO. It gives the holder the option to mint KLIMA by burning pKLIMA and providing the intrinsic value of KLIMA. For example, an investor would provide 1 BCT and 1 pKLIMA to mint 1 KLIMA.

• V1:

Staking KLIMA via Solidity

Requirements

• Get some MATIC to pay for gas fees

• Get some KLIMA tokens to stake

• Get the contract addresses from here:

1. Transfer KLIMA to your contract

You can transfer KLIMA tokens to your contract via web3.js and JSON RPC (like using Metamask) or choose to implement a deposit function that calls KLIMA's standard ERC20 approve and transfer functions to allow your contract to transfer users' KLIMA tokens to your contract.

2. Approving the StakingHelper contract

Your contract's function calls the KLIMA token's standard ERC20 approve function to allow the StakingHelper contract to withdraw KLIMA tokens from your contract. In the example below, an interface named IERC20 to interact with the KLIMA token smart contact.

3. Staking KLIMA tokens

Your contract's function calls the StakingHelper contract's stake function. In the example below, an interface named IStakingHelper is used to interact with the StakingHelper contract.

Once staked, you will receive a proportional amount of sKLIMA to represent the staked KLIMA. sKLIMA is an ERC20 and can transferred using the IERC20 interface.

Example

Unstaking KLIMA via Solidity

Requirements

• Get some MATIC to pay for gas fees

• Get some sKLIMA tokens to unstake

• Get the contract addresses from here:

The following assumes your contract already holds sKLIMA. You can follow the same steps above to transfer sKLIMA to your contract if necessary.

1. Approving the Staking contract

Your contract's function calls the sKLIMA token's standard ERC20 approve function to allow the Staking contract to withdraw sKLIMA tokens from your contract. In the example below, an interface named IERC20 to interact with the sKLIMA token smart contact.

2. Unstaking sKLIMA tokens

Your contract's function calls the Staking contract's unstake function. In the example below, an interface named IStaking is used to interact with the Staking contract. The default value for bool _trigger is false unless you wish to trigger the rebase.

Once unstaked, you will receive a proportional amount of KLIMA. KLIMA is an ERC20 and can transferred using the IERC20 interface.

Example

Why would you wrap sKLIMA?

wsKLIMA is an index-adjusted wrapper for sKLIMA. Some people may find this useful for accounting purposes. Unlike an sKLIMA balance, a wsKLIMA balance will not increase over time.

When wsKLIMA is unwrapped, holders receive sKLIMA based on the latest (ever-increasing) index, so the total yield is the same.

The policy contract is an address guarded by a simple Gnosis safe implementation. The policy address manages adjustments of the monetary policy of the KlimaDAO protocol. This includes BCV and reward rate adjustments.

Access to the policy address is controlled by a 3 of 5 multi-sig held by members of the Core Team. Changes made via the policy address are either voted on by the token holders specifically as a KIP, or implemented under a specific power delegated to the Policy Team via a KIP.

• V1:

See this constants file in our public frontend repository for a complete listing of the testnet contract addresses.