KlimaDAO Status Update: November 2021

KlimaDAO Status Update: November 2021

Published Mon Nov 08 2021

KlimaDAO’s thesis is that the power of Web3, (3, 3) and the design of powerful market incentives can quickly and radically move the dial on climate action.

Last Sunday evening, COP26 began with world-leaders and top diplomats from across the planet coming together to try their hand at achieving international co-ordination in the climate change arena.

As the events unfold in Glasgow, our thesis will continue to be quietly validated in the background.

In the words of Sir David Attenborough, “if working apart we are force powerful enough to destabilize our planet, surely working together we are powerful enough to save it.

Why wait?

In this entry, we give the community a brief summary on our progress.

KlimaDAO hitting the Mainstream

Since launch we have been picked up by the leading media outlet for carbon markets, Carbon Pulse. In their article from the 27th October titled "Carbon-backed crypto initiative buys nearly 7 mln offsets in first week after launch", they included some useful analysis in the following quote:

A digital currency protocol backed by carbon credits has purchased 6.8 million VCS units in the first week after its launch, while reaching a market cap of over $1.1 billion.

That’s equivalent to around 2% of what the entire voluntary carbon market is on course to transact over 2021, based on Ecosystem Marketplace surveys that tracked some 239 million tonnes of voluntary emissions reductions (VERs) as having traded for the year through August.

KlimaDAO has also been picked up by leading Australian outlet Financial Review. The article titled why the price of carbon credits is going to the moon highlights the impact of three key drivers that are having an influence in pushing the floor price of the voluntary carbon market up.

[the third driver] is the potential demand created by a new carbon backed digital currency called KLIMA, which in the past two weeks has absorbed and retired 7 million carbon credits, which is 23 times more than BHP required in the last year.

BHP, the company referenced in Financial Review is the world’s second largest mining company. “Carbon offsetting” is identified as one of the ways that BHP will achieve their climate change targets. Here’s to hoping that next year’s carbon credit bill is significantly higher 🍻.

KlimaDAO Carbon Analytics

KlimaDAO launched alongside the Toucan Protocol, which enables retired carbon credits to flow on chain and be transformed into BCT in response to the incentive mechanisms created by KlimaDAO. In total, there are over 10.5 million BCTs on-chain.

Just over 9.1 million BCTs are locked in the KlimaDAO treasury. This is more than the equivalent annual emissions of Georgia, Jamaica or Papua New Guinea, and almost as many as Honduras or Cameroon.

Around 90% of onchain carbon tonnes are now locked in the KlimaDAO treasury. The USD equivalent of these locked carbon has surpassed $100,000,000 (BCT = $6.32).

KlimaDAO Financial Analytics

A core pillar of KlimaDAO’s ability to grow for the long-term is the building out of protocol-owned liquidity (learn more here about why this is important). Currently, KlimaDAO owns nearly 99% of the KLIMA/BCT liquidity, and 91.5% of BCT/USDC liquidity.

inline image

Protocol owned liquidity for KLIMA-BCT remains at >99%

inline image

Protocol owned liquidity for BCT-USDC currently stands at >91%

The protocol’s Risk Free Value (RFV) stands at just over 2 million BCT. RFV is the amount of BCT that the treasury guarantees to back KLIMA with, based on what is currently available in the treasury from bonds. The healthy state of the treasury and RFV means there is enough BCT in the treasury to continue to issue rewards in the form of sKLIMA for 105 days if the protocol was to stop generating revenues today.

inline image

Klimate Analytics

The dominant strategy to get exposure to KlimaDAO’s growth is to bond BCT or LPs with the treasury to secure discounted KLIMA, and then stake KLIMA to be a participant of the protocol.

A higher percentage of staked KLIMA translates to more stable protocol growth and a wider distribution of sKLIMA rewards to Klimates. When the percentage is lower, we may see more volatility of KLIMA, but rewards will be higher for those who remain staked. The total amount of staked KLIMA has remained relatively stable since October 19th at >92.5%.

As of today, around 95% of KLIMA is staked, indicating rewards being paid out to the vast majority of KLIMA holders. Around 4% of KLIMA is being used to provide liquidity. This means that less than 1% of KLIMA is not being put to good use.

inline image

In the past few weeks since launch we have seen the amount of KLIMA holders move from the initial 5,000, to over 35,000.

inline image

You can view the analytics at https://dune.xyz/Cujowolf/Klima-DAO

You can also join our Discord and follow our Twitter to get ongoing updates as we launch.


Die in diesem Blogbeitrag bereitgestellten Informationen zu KlimaDAO („KlimaDAO“), seinen Krypto-Assets, Geschäftsvermögen, Strategie und Betrieb dienen nur allgemeinen Informationszwecken und sind kein formelles Verkaufsangebot oder eine Aufforderung zur Abgabe eines Angebots von Wertpapieren, Optionen, Futures oder andere Derivaten im Zusammenhang mit Wertpapieren in jeglicher Rechtsordnung, und der Inhalt ist nicht durch Wertpapiergesetze vorgeschrieben. Die in diesem Blogbeitrag enthaltenen Informationen sollten nicht als Empfehlung zum Kauf oder Verkauf oder Halten solcher Wertpapiere oder als Angebot zum Verkauf solcher Wertpapiere angesehen werden. Dieser Blog-Beitrag berücksichtigt weder Steuer-, Rechts- oder Anlageberatung noch gibt er eine Stellungnahme zu den spezifischen Anlagezielen oder der finanziellen Situation einer Person ab. KlimaDAO und seine Vertreter, Berater, Direktoren, leitenden Angestellten, Mitarbeiter und Aktionäre geben keine ausdrücklichen oder stillschweigenden Zusicherungen oder Gewährleistungen hinsichtlich der Richtigkeit dieser Informationen ab, und KlimaDAO lehnt ausdrücklich jegliche Haftung ab, die auf solchen Informationen oder Fehlern oder Auslassungen beruhen könnte. KlimaDAO behält sich das Recht vor, die hierin enthaltenen Informationen ganz oder teilweise jederzeit zu ändern oder zu ersetzen, und übernimmt keine Verpflichtung, dem Empfänger die geänderten Informationen zugänglich zu machen oder den Empfänger hiervon in Kenntnis zu setzen. Die in diesem Blog-Beitrag enthaltenen Informationen ersetzen alle in früheren Blog-Beiträge oder Konversationen ähnlichen oder verwandten Informationen. Auf Informationen, Darstellungen oder Aussagen, die hier nicht enthalten sind, darf für keinen Zweck vertraut werden. Weder KlimaDAO noch einer seiner Vertreter haften Ihnen oder einer anderen Person gegenüber aus jeglichen Gründen, die sich aus der Verwendung oder Nichtverwendung der Informationen in diesem Blog-Beitrag durch Sie oder einen Ihrer Vertreter ergibt. Darüber hinaus übernimmt KlimaDAO keine Verpflichtung, die Erwartungen oder Aussagen Dritter in Bezug auf die in diesem Blogbeitrag erörterten Angelegenheiten zu kommentieren.