What if any crypto transaction could be used to remove carbon offsets from circulation?
*Hits bong*
Wait. Hear us out.
While brainstorming different ways to remove carbon via NFTs, we stumbled upon a mechanic for removing carbon that could work for any crypto transaction:
- Buyer pays in token of choice
- Auto-swap for Base Carbon Tonne (BCT)
- Auto-bond BCT at KlimaDAO for KLIMA
- Seller ends up with KLIMA which they can stake to earn interest *or* exchange it for whatever currency they prefer
This way, any on-chain transaction could siphon BCT out of the market and into the “black hole for carbon” that KlimaDAO has created.
What’s wild is that all of the money legos for doing this exist today. Toucan for bridging carbon offsets on-chain, KlimaDAO’s adaptation of OlympusDAO’s tokenomics, Sushiswap to exchange tokens, Polygon as the layer where it all takes place. And this is just the current generation/version of the building blocks.
You might think a better mechanic would involve burning some carbon offsets. But that means either the seller donates a portion of their earnings, and/or the buyer pays extra to receive the equivalent.
The advantage of swapping for BCT and bonding for KLIMA is that neither party gives up anything. The investors/speculators in KlimaDAO’s tokenomics game absorb the initial loss for the chance at future upside.
You’ll be able to see the quasi-makings of this new payment mechanic in practice when we launch our inaugural NFT series — The Genesis Stone, the world’s first carbon infused NFT. Buyers will mint The Genesis Stone using BCT, and payment ends up as KLIMA. Launch date is TBD and will be announced on our Twitter handle @CarbonizedNFT.
