January 5, 2022
Today, our economy rewards us for consuming energy, burning carbon, and polluting our environment.
We are, however, in the midst of a transition to a cleaner society. Web3 will be a key catalyst for change by enabling Regenerative Finance (ReFi) to rapidly scale and align incentives between those who want to have a positive impact.
ReFi speaks to a preference for the funding of community and the public good over — or in parallel to — projects that are expected to produce a reward for the funder. In the context of KlimaDAO, ReFi refers to the environment and our climate, and how the cost of carbon can be internalised into DeFi.
Last year, on December 3rd, the QiDao community passed QIP-041, committing to use 100% of their profits from the Green Leverage Locker to obtain $BCT.
$MAI (miMatic) is a stablecoin backed by collateral, and can only be minted with this collateral backing it. $MAI is created when users deposit accepted tokens as collateral in vaults and in turn receive a loan against that collateral. Users can also mint $MAI through Anchor, where $MAI is minted in exchange for accepted stablecoins. $MAI is soft pegged to the USD, meaning that 1 $MAI is around 1 USD.
Bringing $BCT into the QiDao ecosystem demonstrates the composability of $BCT as a digital asset that can be used as a form of green collateral in a treasury or portfolio. By utilising primitives such as $BCT and $KLIMA, the ReFi ecosystem can scale, and ensure it is being built on high-integrity foundations that expedite investment into the climate above all else.
Building on this concept artist SVN created an experimental NFT named CO2_COMPOUND for the Ocean Drop that demonstrates $sKLIMA’s composability, and shows how $sKLIMA can be used to permanently compound $sKLIMA rewards and carbon. The artwork is irrevocably fused to its smart contract, and the $sKLIMA can never been redeemed.
The piece has internalised over 21 tonnes of carbon in time since its release in October and will do so ad infinitum. Below shows the rate that the piece has been compounding carbon since it was minted.
Proposals on how KlimaDAO will continue to develop the ReFi ecosystem can be viewed at https://snapshot.org/#/klimadao.eth.
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