Carbon offsets are tokenized on the Polygon (MATIC) network. This is done by means of Base carbon Tonnes(BCT) using the Toucan protocol. Of the total available 17 million BCTs, KilmaDAO is in possession of a large majority.
KilmaDAO is generating a lot of buzz in the carbon offsets industry. KlimaDAO is a carbon offset protocol. KilmaDAO has now collected more than 14 million carbon offsets.
KilmaDAO intends to accumulate as many carbon offsets as possible. This will raise their value, leading to enhanced profits for the generation of carbon offsets. DAO is planning to spend $100 million on offsets.
Carbon Offsets – Challenges
A large portion of the $100 million is being raised though the issue of bonds. Investors who purchase these bonds would be entitled to receive a discount on the token KLIMA. In Dec 2021, the discount level on KLIMA was enhanced – to increase the sale of bonds in an effort to raise more funds.
Gold Standard is a conventional carbon offset firm. In response to the accumulation of carbon offsets by KlimaDAO, Gold Standard’s CEO expressed concern that the project raised questions around transparency. Gold Standard opined that KlimaDAO’s founders are anonymous and transparency is critical in climate action and carbon markets.
KlimaDAO responded saying that it was possibly through other means to provide transparency, without revealing the identity of the founders. KilmaDAO added that probably some time in the future, when governments mandate revealing the founders’ identity they would do so.
KilimaDAO added that Gold Standard would be reassured with KlimaDAO’s growth if there was regulatory clarity over how DAO functions legally.
KlimaDAO’s team is prepared for the long term. It is determined to handle any issues that may arise in growing carbon offsets.