Why @KlimaDAO matters.

The price of carbon credits varies widely from $1-$50 per, averages at $3-5/ton today. Price depends on:

1. Type of carbon offset project,
2. Carbon standard under which it was developed,
3. Location of offset,
4. Vintage year
5. Co-benefits
Klima DAO will tokenise varified carbon credits into Tokenized Carbon Tons (TCT).

Every TCT will be backed by at least 1 tonne of CO2 credit.

When a TCT is brought on-chain, it will be removed from the off-chain database.
Using Creol’s open-source carbon-credit-tokeniser, Klima DAO will onboard Verified Carbon Units (VCUs) from the Verra Registry in to the ecosystem as TCTs.

Vera Registry has issued 760 million tons of VCUs and it was launched in 2020.
According to Trove Research and University College London, the current surplus of carbon credits could be quickly eroded, with demand of carbon credits expected to increase 5-10x over the next decade as companies seek to deliver on zero emissions pledges.

@KlimaDAO's buy pressure on carbon credits will cause the value of carbon credits and $KLIMA token to rise.

The $KLIMA token will likely trade at premium over Market Value of TCTs because $KLIMA will be more liquid, on-chain and standardized
Company CFOs will prefer holding $KLIMA tokens on their balance sheet vs off-chain credits because mark-to-market accounting for $KLIMA will be easier due to on-chain liquidity

Carbon offset project developers will prefer selling CO2 credits to $KLIMA for similar reasons.
@KlimaDAO has a fiercely capable Ohmies community cheering for it as well because @OlympusDAO holds 70 million $pKLIMA, which is an option to convert to $KLIMA.

$OHM amassed a $147 mm Treasury + $102 mm in liquidity in 5.5 months.

How many CO2 tons will $KLIMA have in 1 year?
About 30-60 million tons is my estimate if trajectory is in line with $OHM (I see no reason why it won't be).

So this piece of code is saying, I can create capability to buy 30-60 million tons of CO2 in yr 1.
That's ~3% of all CO2 emitted by air travel atag.org/facts-figures.…
It won't stop there.

In time, @KlimaDAO could start pulling in 200-300 million tons of CO2 per year. At $30/ton, that's $6-9 billion per year!

Unlike other holders of such credits, $KLIMA will literally eat up credits and never give them out.
Imagine a $KLIMA treasury with a billion tons of CO2 with price / ton at $50.

$50 billion Treasury Market Value!

What's the market cap then? $200-300 bn?

Point being, $KLIMA can be incredibly huge because it's using the $OHM mechanism to buy CO2 credits.
The $OHM mechanism has proven that it can eat up USD at a rate of $15-20 million per month while owning its liquidity.

That's 3-4 million tons of CO2 per month. For context: San Francisco and New York produce 1.5 million tons / month.

State of Texas does 50 million tons / month
Best part? $KLIMA will be community run.

Some of the smartest people I know are Klimates because many Klimates are also Ohmies. And Ohmies are by far the smartest, most capable people I've ever worked with.

Great team, great design, compelling vision and product-market fit.
$KLIMA matters because it can actually create a meaningful "dent" in the climate change problem.

This isn't financial advice. This is an experiment. It's very risky, it's speculative. But to me, it looks like a damn good bet.

Good luck @ArchimedesCryp1 and team!
Forgot to emphasize one important detail.

1 $KLIMA will always be backed by 1 TCT and when $KLIMA is staked it will pay staking rewards same way as $OHM does.

Question is: do tokenized carbon credits belong in your portfolio? If yes then what %age is a fair allocation? Hmmmm.
And in case this part isn't obvious. A high price of carbon credits = more people willing to invest in carbon offsetting investments such as power plants installing a Heat Recovery Steam Generator or a home installing solar.

Up front cost gets off-set by selling carbon credits.
Home owners for example could get verified CO2 credits and use those to sell to get on the Vera Registry, from there $KLIMA can be obtained.

All this will reduce the "pay-back" period of a green energy investment which always requires up front capital.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Asfi ((3,3),(☢️,☢️))

Asfi ((3,3),(☢️,☢️)) Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ishaheen10

12 Sep
What is inside the Black Box?

A thread about the @missingfrontier and @missingwatcher covering:

- What is GameFi?
- What is Frontier?
- What is in the Black Box?
- What are Flash Blocks?
- Who is The Watcher?
- What is $DATA utility token?
- When can you play?
- Should you ape?
1. What is GameFi?

It’s like DeFi but with games.

You collect items and solve puzzles. Along the way you earn more crypto assets + the assets you bought become more valuable.

Remember how World of Warcraft characters would sell for $10k in 2007?

This is that on steroids.
2. What is Frontier?

A community driven Player versus Player (PvP) online game.

The founder says: “we are sitting on an Riot Games of NFT level opportunity by turning the Browser Game into a competitive AAA game”

Here’s a preview of product quality and what to expect.
Read 9 tweets
9 Sep
Recruiting 101 in an Anon world.

A thread about how @0xZaius went from conceiving an idea to share Incooom more fairly on August 17 to launching it on September 9 (23 days) Image
1. On August 17, @wagmianon and I conducted an information session about financial modeling and safely using leverage to enhance returns (known as the 9,9 strategy).

@0xZaius saw that session and thought there should an easier way to let everyone access Alfa.
2. So he starts recruiting people. He says he’s been a part of Olympus since the beginning so he knew who is good and who is a contributor.

This is the really interesting part.

There are over 12k Ohmies but about 65 or so active contributors.
Read 12 tweets
28 Aug
@OlympusDAO Liquidity Bonds versus Liquidity Mining:

2 ways to bootstrap token liquidity but with different financial and psychological implications for token holders.

A thread exploring the cost of acquiring + maintaining liquidity through two different methods. Image
1. What is Liquidity Mining?

Token XYZ launches, offering high APRs in XYZ terms.

This encourages yield seekers to create Liquidity Pools or LP tokens on a DEX like Uniswap.🦄

APRs are kept high to compensate liquidity providers against "impermanent loss". 📉 Image
2. What is impermanent loss?

It is loss borne by an LP token holder when price of two tokens diverges from the point an LP token was minted.

Much longer discussion here.

TL;DR: there’s plenty of risk here so be aware liquidity providers. Image
Read 9 tweets
9 Aug
Q. How is $OHM not a ponzi?

A. $OHM is completely transparent and generates revenues beyond bond sales.

~$30k/day ($11 mm annualized) from trading fees and it could generate another $3 mm / yr on its stablecoin balance, assuming 11% yields.


$14 mm / year WITHOUT bond sales Image
There are roughly 1 million $OHM in circulation so $14/OHM is the non bond revenue/OHM/yr

Non bond revenue per $OHM / price per $OHM = 14/415 = 3.4%

Without ANY external capital inflows, $OHM holders can realize a 3.4% dividend yield right now.

Ponzi schemes cannot do this. Image
Q. But these trading and yield farming revenues are less than 10% of total rev, what about that?

A. $OHM is less than 4 months old and it’s in an expansionary phase. It’s treasure balance is barely $30 mm with liquidity barely $65 mm.

Over time non bond revenue % should ⬆️ Image
Read 8 tweets
2 Aug
Hi Ohmies, the policy team at @OlympusDAO made an announcement today that you should check out.

Here’s a brief thread explaining the levers used to put these policies in action and also a bit of rationale/explanation behind each statement. Image
1. To decrease bond capacity, a bond’s Bond Control Variable (BCV) is increased.

Bond Price = 1 + debtRatio x BCV

By drastically increasing FRAX BCV from 690 -> 13,900, bond price for a given debt ratio will rise.

This is how FRAX capacity gets reduced. Image
2. However, these BCV targets are gradually changed.

You can track their change progress on the policy dashboard.

Over time you will see FRAX intake dramatically reducing.

Read 7 tweets
31 Jul
What is liquidity and why does it matter for $OHM holders?

A thread for Ohmies wondering how liquidity fits into the overall equation and how to interpret results on dashboard. Image
1. Liquidity is ability to turn an asset into cash.

If you try to sell your house at 30% below market value you will find plenty of buyers.

Try selling at a 30% premium and you won’t find as many.

Point being: liquidity depends on selling price and asset quality.
2. Asset quality depends on an asset’s ability to generate cash flow.

Or command a premium in case of art.

$OHM has strong cash flows. A $23 mm cash balance growing at $500k/day.

If $OHM was a typical Series A start up, there would be NO liquidity for its tokens btw.
Read 13 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!