Thread by @KlimaDAO

Public, open, permissionless systems can catalyze change in existing markets.

The Voluntary Carbon Market (VCM) is an incredibly important market in our fight against climate change—but to scale, change is needed.

KlimaDAO aims to offer an alternative approach to the VCM.
1/24

Automated Market Makers are one of the core open-source technologies that define DeFi, and they can be applied in a variety of markets to create greater transparency and equitable access.

Establishing liquidity is key for the market to operate efficiently. AMMs enable this.
2/24

KlimaDAO uses AMMs to enable transactions in the VCM. Protocol-Owned Liquidity was established immediately after launch, forming the financial rails of the emerging Digital Carbon Market.

KlimaDAO has since deployed tooling that enables the consumption of on-chain carbon.
3/24

This includes our carbon dashboard, retirement aggregator and pledge app.

KlimaDAO is proud of achieving its initial goals of building base layer infrastructure for transparent access to and retirement of carbon credits. These are open-source public goods.
4/24

Today, accusations were made against KlimaDAO by an individual on multiple channels – all of these allegations have been addressed previously, but today they have been resurfaced.

To set the record straight we will address each element individually:
5/24

pKLIMA (pt. 1)
• pKLIMA was discussed openly & extensively prior to launch
• As we operate on the blockchain the sell pressure from pKLIMA redemptions is easily queryable; there is a Dune dashboard available here:
dune.com/Brian33/pKLIMA…
6/24

pKLIMA (pt. 2)
• Less than 1% of KLIMA sell pressure is due to pKLIMA redemptions. Sell pressure trends over the last year are comparable to trends seen across dozens of similar projects and protocols.
7/24

Note, our Dune dashboard provides a complete overview of our protocol's mechanics:
dune.xyz/Cujowolf/Klima….

Similar to our carbon dashboard, these data are updated regularly and available 24/7. That's the power of operating on the blockchain!
8/24

Importantly, KLIMA is designed to provide liquidity rails for a variety of tokenized carbon assets and is the DAO governance token utilized to make decisions in our public governance process:

• docs.klimadao.finance/dao/governance…
• klima.fyi/klima-tokens-r…
9/24

For additional dialogue on KlimaDAO's incentive mechanisms, here's a link to @0xKlimaurelius discussing the topic:
10/24

C3 (pt. 1)
• In December of 2021, a group of well-known experts in the carbon market approached KlimaDAO Core contributors interested in supporting the growing on-chain carbon ecosystem.
11/24

C3 (pt. 2)
• Given the delay of Toucan's NCT pool and lack of a public governance process for the Toucan protocol, KlimaDAO Core contributors recommended launching a one-way bridge that would automate the bridging process and have a public governance mechanism.
12/24

C3 (pt. 3)
• While Toucan's code was not fully open-source, C3 implemented a one-way bridge (with automated registry data integration) in mere weeks.
• This demonstrates that bridging is a commodity technology, opening competition on governance foused on the user.
13/24

BCT (pt. 1)
• BCT was chosen as a pool to represent the most widely used and consumed carbon credits in the market to ensure adequate on-chain liquidity.
• A number of stakeholders were involved in the design of BCT, including Klima Core founding members and advisors.
14/24

BCT (pt. 2)
• We have included analysis of this previously: klimadao.finance/blog/klimadao-…
• It is fair to say that BCT has exposed issues in the legacy VCM.
15/24

BCT (pt. 3)
• In response to such an issue, KlimaDAO's community voted to unilaterally destroy 672,000 tonnes of HFC-23 credits from the BCT pool: klimadao.finance/blog/bct-hfc23…
16/24

KlimaDAO has worked since launch to build carbon market liquidity, and essential functionality to define the Digital Carbon Market and solve real problems in the VCM.

We are excited to imminently launch our latest product: @carbonmarkcom, the universal carbon marketplace
17/24

Carbonmark (pt. 1)
• It is permissionless open infrastructure
• Has 0 additional fees and will be open-sourced immediately post-launch
• This release may be perceived as threatening to other blockchain-enabled carbon marketplaces, but we remain committed to collaboration
18/24

Carbonmark (pt. 2)
• Carbonmark is a natural evolution of KlimaDAO's goal to unlock liquidity and bring greater transparency to carbon markets
• Carbonmark's launch follows our ethos of building open-source foundational DCM infrastructure
19/24

Carbonmark (pt. 3)
• Carbonmark will be available to anyone who wants to transparently buy, sell or retire carbon assets of any category, vintage or origin
• It will integrate our entire product suite to enable powerful DCM capabilities
• It will never have its own token
20/24

Many DAO representatives (Core and beyond) who have pseudonymous online personas have represented KlimaDAO as themselves, in person. This includes both Web3 and climate finance-oriented events, such as ETHDenver and the European Climate Summit.
21/24

KlimaDAO only makes changes to the protocol and the organization after the passing of a KIP vote on our Snapshot.

KlimaDAO is a dynamic, community-owned project.

In the face of competition, adversity and changing market conditions, KlimaDAO must be able to adapt.
22/24

No organization is perfect, but KlimaDAO has successfully disrupted the status quo of the VCM, catalyzing the #ReFi ecosystem and radically changing the conversation about blockchain's role in solving the climate crisis
23/24

KlimaDAO's ethos is to keep listening, engaging and developing products to address the needs of users. We will continue to operate in a transparent and open manner – building, shipping, and still here.

Catch up with the team next at
@eth_porto and @ETHDubaiConf.
24/24