KlimaDAO, a building block of the ReFi ecosystem
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KlimaDAO, a building block of the ReFi ecosystem

Published Wed Jan 05 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.

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https://co2compound.klimadao.finance/

Proposals on how KlimaDAO will continue to develop the ReFi ecosystem can be viewed at https://snapshot.org/#/klimadao.eth.

If you are interested in learning more about how KlimaDAO can enable coordination to tackle climate change, join us on Discord and follow us on Twitter.

Disclaimer

The information provided in this Medium Post pertaining to Klima DAO (“Klima DAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this Medium Post should not be relied upon as advice to buy or sell or old such securities or as an offer to sell such securities. This Medium Post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Klima DAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and Klima DAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Klima DAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this Medium Post supersedes any prior Medium Post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither Klima DAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Medium Post by you or any of your representatives or for omissions from the information in this Medium Post. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this Medium Post.