Moss x KlimaDAO: Saving the Amazon from Deforestation
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Moss x KlimaDAO: Saving the Amazon from Deforestation

Published Wed Jan 26 2022

How Moss is enabling KLIMA holders to help protect the Amazon, one project at a time.

KlimaDAO has recently partnered with Moss, and has started to accumulate MCO2 tokens into its treasury alongside the Base Carbon Tonne (BCT). This post will explain what this means for KLIMA holders.

Before we dive deep into a Moss project case study, let’s get you up to speed on the basics first.

Who is Moss?

Moss is an organization that helps prevent the deforestation of the Amazon rainforest. They do this by buying the carbon credits of several conservation projects, and bring them onto the blockchain as tokenised carbon tonnes. Since March 2020, Moss has transacted over US$20 million that have helped to conserve approximately 735 million trees in the Amazon through internationally certified and audited projects.

What is MCO2?

MCO2 is the token issued by Moss. Each token represents one tonne of carbon emissions avoided from any of the projects they have invested in. All of their projects have been verified and issued against the Verra Carbon Standard (VCS). MCO2 is available on Coinbase and Gemini, giving access to a wide market and allowing direct and easy access to tokenised carbon tonnes.

When is KLIMA going to start accepting MCO2 into the treasury?

MCO2 bonds are live already! You can bond your MCO2 tokens in exchange for KLIMA on the KlimaDAO website.

What are the benefits for KlimaDAO accepting MCO2?

Accepting MCO2 into KlimaDAO’s treasury serves multiple purposes:

  1. It enables a new revenue stream for KlimaDAO via the KLIMA/MCO2 liquidity pool.
  2. It strengthens and diversifies the backing of KLIMA with a new tokenized carbon asset.
  3. It enables Klima to tap into the progress Moss has made in the Web3 space with the mass-market, e.g. listings on Coinbase and Gemini, and becoming the offset partner for GOL — one of Brazil’s largest airlines.
  4. It increases the utility and adoption of KLIMA, making the protocol less dependent on reward rate, allowing for reduced inflation rate and greater long-term stability of the protocol.

Case Study: Florestal Santa Maria Project

Let’s look at one of the projects Moss has funded in more detail: Florestal Santa Maria Project.

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Located in a region known as “Deforestation Arch” due to the intense deforestation pressure from agriculture workers, Florestal Santa Maria (FSM) is a REDD project in a private reserve comprising 71,714 hectares of native forest. This project aims to preserve the native forest and its biodiversity, in addition to providing social development around the property. It intends to reduce greenhouse gas emissions equaling 26,489,628 tonnes of CO2 over the 30 year lifetime of the project. That’s the equivalent of more than half of all annual transatlantic flights between Europe and North America!

The project is certified following the VCS and SocialCarbon protocols, in addition to the implementation of a rigorous monitoring system in the region that ensures the proper preservation of the project area.

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How Moss selected the project.

Before deciding which projects to back, Moss runs an extensive verification and quality assurance process that includes reviewing 20 years of satellite imagery, drone pictures and the sampling of flora, fauna and biomass from different points in the forest. This data is used to calculate the forest biomass, which helps inform the amount of CO2 emissions that will be prevented. For FSM, 2.5 million tonnes of CO2 will be saved. Out of the 2.5 million, 800,000 are in the “Buffer” fund, which leaves 1.7 million carbon credits to be issued over 30 years (57 thousand per year, audited every year).

How Moss selected the project.

Before deciding which projects to back, Moss runs an extensive verification and quality assurance process that includes reviewing 20 years of satellite imagery, drone pictures and the sampling of flora, fauna and biomass from different points in the forest. This data is used to calculate the forest biomass, which helps inform the amount of CO2 emissions that will be prevented. For FSM, 2.5 million tonnes of CO2 will be saved. Out of the 2.5 million, 800,000 are in the “Buffer” fund, which leaves 1.7 million carbon credits to be issued over 30 years (57 thousand per year, audited every year).

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FSM property, fully covered in trees.


To learn more about the project, visit the project’s website in the Verra registry.

You can find all credits MOSS has purchased from FSM here.

The impact of Moss x KLIMA

At the time of this writing, Moss has bought 533,334 credits from FSM. This has generated millions of dollars of cash flow that goes directly to FSM’s efforts to conserve the Amazon rainforest. Put another way, Moss has bought nine years worth of credits by FSM. Without Moss, projects like FSM would struggle to get off the ground.

When MCO2 is bonded into the KlimaDAO treasury, MCO2 circulating supply shrinks, causing upward pressure on MCO2 price. This incentivises more projects in the Amazon like FSM to take on ambitious preservation initiatives and expand their operations.

FSM is just one of many projects that Moss supports. Partnering with Moss brings us one step closer to the fulfillment of KlimaDAO’s vision: a future where carbon assets are highly liquid, on-chain, transparent, and priced into the economy. We’re excited to show you what’s next!

You can follow Moss on Twitter.

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

Disclaimer

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