KlimaDAO increases carbon offset stash by 50% in two months
Protocol for carbon offsets KlimaDAO has over 14 million on-chain carbon offsets and is generating a stir in the traditional carbon offset sector.
KlimaDAO’s goal is to acquire as many carbon offsets as possible in order to increase the value of those offsets and make offset-generating operations more profitable.
Since late November 2021, the Mark Cuban-backed project’s treasury has contributed over 5 million carbon offset tokens, bringing the total to 14.5 million as of this writing. Toucan Protocol and Moss have tokenized and connected its offsets to Polygon (MATIC) in the form of Base Carbon Tonnes (BCT) and the new MCO2 tokens, which were added to the treasury on January 6. KlimaDAO now holds the vast majority of the 17 million BCTs currently in circulation.
On offsets, the decentralised autonomous organisation will spend $100 million.
The majority of the $100 million used to acquire offsets comes from bond sales, which are meant to boost the DAO’s cash flow. Users are rewarded for purchasing bonds with a discount on KLIMA, the project’s native cryptocurrency. The DAO increased the discount on KLIMA bonds on January 6 in order to help raise the revenue needed to purchase more offsets.
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The DAO’s quick accumulation of carbon offsets has piqued the interest of Gold Standard, a traditional carbon offset company. In the Wall Street Journal, CEO Margaret Kim slammed the DAO, claiming that the project’s anon staff posed transparency difficulties.
“We’re also concerned about the founders’ anonymity, which goes against the need for transparency in climate action in general and carbon markets in particular.”
“There are ways to provide assurances without getting doxxed,” the KlimaDAO team told Cointelegraph in response to Kim’s fear. Doxxing is the act of revealing an anonymous person’s true identity.
In the Jan. 10 episode of the podcast Planet of the Klimates, Archimedes, the inventor of KlimaDAO, also addressed the issue of anonymity and trust.
“Will there ever be a time when we have to declare who we are?” Perhaps Klima will grow so powerful that international governments will demand to know who we are at some point.”
Traditional corporations like Gold Standard, according to the team, “may need greater regulatory clarification into how a DAO works legally” in order to be more comfortable with the project’s rapid expansion.
“We are prepared to do whatever it takes to make the DAO succeed,” the KlimaDAO team said, indicating that it is ready to take on the long-term problems involved with carbon offsets on the blockchain.