Hi PUBLISH0X community!
Today I would like to share a project I invested yesterday. This in an interesting project related to Carbon Shares.
What is Toucan Protocol
Toucan is on a mission to make DeFi work for the Earth. We are building a positive economy for the planet based on the open web, starting with the public infrastructure needed to create a new lego of money: programmable carbon.
There are 2 modules to bring carbon to the blockchain
Carbon Bridge: It allows anyone to tokenize their carbon offsets and make them available in the emerging world of DeFi, or decentralized finance.
Carbon Pools: converts carbon offsets into more liquid carbon index tokens, enabling price discovery for different carbon asset classes and providing a new lego of money to DeFi.
Together, these modules built the Toucan Protocol.
The Protocol
Below is a diagram of the overall design of the Toucan Protocol. It should not be thought of as a technical diagram, but rather as a way to get a sense of the different parts of the Toucan Protocol and how they interact.
The lower part of the diagram shows the off-chain registries maintained by standard-setting bodies such as Verra, which issue carbon offsets when projects can demonstrate that they have engaged in an activity that meets their standard.
Carbon Bridge provides a gateway for carbon offsets from these legacy registries on Polygon, an EVM-compliant blockchain that runs on an energy-efficient proof-of-participation consensus mechanism.
Once bridged, tokenized carbon offsets (called TCO2 tokens) can be deposited into a Carbon Pool. These carbon reference pools only accept offsets that contain a set of attributes, meaning that each offset in the pool has a shared set of trigger attributes. By depositing TCO2 tokens into a pool, users receive carbon reference tokens, a fungible pool token that is backed by an offset contained in the smart contract.
By aggregating carbon offsets into Carbon Pool smart contracts, the Toucan Protocol enables the creation of liquid carbon tokens such as BCTs. As fungible ERC20 tokens, these carbon reference tokens can be easily integrated into DeFi's evolving world.
The Protocol
Below is a diagram of the overall design of the Toucan Protocol. It should not be thought of as a technical diagram, but rather as a way to get a sense of the different parts of the Toucan Protocol and how they interact.
Carbon markets:
1. The voluntary carbon market
The main objective of the voluntary carbon market is to leverage financing for carbon projects that reduce greenhouse gas (GHG) emissions. Carbon offsets are the vehicle that connects carbon projects with consumers who purchase offsets to achieve their climate goals. A carbon offset represents a measurable and verifiable removal, reduction or avoidance of GHG emissions and is denominated in tCO2e (meaning "ton of CO2 equivalent").
2. Carbon standards
In the voluntary carbon market, carbon standards set out the rules and requirements that carbon projects must follow to demonstrate that they meet minimum quality criteria. Verra's Verified Carbon Standard and Gold Standard are the two main players, with smaller standards emitting less than a quarter of total offsets each year.
Methodologies
The "rules" that carbon projects must follow are a combination of high-level requirements and processes set by standard and specific accounting methodologies. One methodology dictates such things as monitoring requirements and is different for each carbon offset generating activity. A methodology for protecting forests from deforestation requires different data to be collected than a methodology for wetland restoration. Independent third parties, a list of auditors authorized by each standard, will evaluate projects against these rules and requirements. Only after a successful verification, the standards body will issue offsets for the project.
Retire offsets?
Once projects have demonstrated that they have eliminated or reduced GHG emissions, offset credits are issued and are in an active status. Because projects generally do not have direct contact with companies that will purchase their offsets to satisfy sustainability claims, they often sell them to intermediaries: brokers, resellers and retailers. Offset credits can pass from one hand to another without changing their status. But when an end buyer wants to use the offsets to offset their GHG emissions for carbon accounting purposes, the offsets must be retired. Now the offset has done its "duty" and no one else will be able to claim the carbon removal or reduction for their books. A registry account is needed for trading carbon credits in an asset-state. These accounts can cost $1,000 per year in the case of Gold Standard.
Maximum supply
6,887,463 BCT tokens
Toucan Protocol Official Links
https://toucan.earth/
https://twitter.com/ToucanProtocol
Discord: https://discord.gg/btWwxUPX
Stay tuned!
