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What is Klima DAO Finance (KLIMA) Token, dApp Stake and Ecosystem?

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Klima DAO is a blockchain-based initiative at the heart of the carbon economy. The project generates tokenized carbon credits in the form of the native KLIMA token. KLIMA tokens represent a ton of carbon reduction, known as “base carbon tons” (BCTs). Furthermore, they entitle users to earn rewards by participating in KLIMA staking.

Tokenized carbon credits offer an attractive new reserve currency that has a real-world impact on climate change by reducing greenhouse gas emissions. Klima DAO aims to add a layer of gamification to the carbon economy, encouraging projects and entrepreneurs to profit while reducing their carbon footprint.

What is Klima DAO?

Klima DAO is a group of “environmentalists, developers and entrepreneurs” aiming to combine their knowledge and experience to make a positive impact on carbon markets. The open source and transparent community uses Web3 and blockchain to deliver a “measurable positive climate impact” and also channel climate finance to verified projects that create sustainable incentives to benefit the environment.

Two of the most prominent issues surrounding climate change are finance and coordination. Yet despite the vast amounts of viable alternative energy sources available, hundreds of millions of dollars flow into fossil fuels annually for the production of commodities and energy. Klima DAO generates tokenized carbon credits on the blockchain to address organizational and financial barriers to delivering initiatives that kickstart the carbon economy. Blockchain and Web3 technologies have the potential to mobilize climate change contributors cooperatively and laterally to responsibly optimize the use of capital and resources.

Furthermore, the use of smart contracts allows Klima DAO to remove intermediaries and automate innovative reward mechanisms that help encourage collaborations. In addition, the realization of the project's vision is being accelerated using open source software with high levels of accountability and compositional ability. In addition, Klima DAO is committed to finding new ways to manage and coordinate resources that go beyond current bureaucratic processes and remove barriers to participation in climate change initiatives.

Klima DAO operates on the energy efficient Ethereum layer-2 solution, Polygon. The binding architecture is similar to the OHM token in Olympus's DAO controlled protocol. Furthermore, the project unites traditional carbon markets and cutting-edge technologies to build a “climate innovation nexus”. Consequently, the project aims to standardize practices across the decentralized finance (DeFi) ecosystem to foster technical expertise and accelerate impactful initiatives.

How does Klima DAO work?

The Klima DAO ecosystem creates value for its community through a “virtuous cycle” of economic growth. Furthermore, all economic activities that take place within the ecosystem will subsequently increase the supply of KLIMA tokens. Additionally, KLIMA tokens can only enter circulation when BCTs are removed from circulation and locked in Klima DAO's treasury.

The scaling of projects will result in a supply of KLIMA tokens supported by BCTs that is “inversely proportional to the availability of carbon offsets” in traditional carbon markets. Also, by taking the carbon supply off the market to lock it in the Kima DAO treasury, the price of carbon offsets will increase, along with the price of the KLIMA token.

Toucan Carbon Bridge

The reserve asset of Klima DAO is the base carbon ton (BCT). A BCT is a carbon offsetting index token that represents a basket of several tons of carbon, including TCO2. Each TCO2 unit represents an individual carbon offset that projects can purchase on the blockchain via the Tucano carbon bridge. In addition, each offset token is equivalent to a ton of carbon dioxide emissions that have been eliminated through verifiable eco-aware projects.

In addition, the TCO2 carbon offset contains features such as project name and type, serial number and year of verification. In addition, different types of TCO2 tokens can represent carbon offsets from different initiatives in various fields and geographies. The basic carbon pool helps standardize the carbon market in the chain. All TCO2 tokens can be staked into the base carbon pool. In return, users receive the BCT carbon index token.

There are three main incentives to promote participation in the Klima DAO ecosystem for a longer period. These are bonding, stakeout and rebase. Below, we take a closer look at the inner workings of the Klima DAO ecosystem.

Link

The link involves trading a share of a liquidity pool under the Klima protocol. The protocol then quotes a quantity of KLIMA tokens that the user receives in return, along with a discount rate and an acquisition period. This in turn allows Klima's hoard to increase your purchasing power beyond exclusive use of BCT, which increases the supply of the KLIMA token.

KLIMA Staking

By participating in KLIMA staking, participants can receive a profit distribution as an incentive for long-term KLIMA participations. This gives users exposure to rising carbon prices. KLIMA Bet Rewards are proportional to the amount of KLIMA tokens in a bet and the duration of the bet. Therefore, blocking more KLIMA tokens for longer periods will result in higher compound returns.

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For each KLIMA token in the Klima stakeout contract, stakers receive “sKLIMA” tokens in a ratio of 1:1. The sKLIMA token is not officially available on any cryptocurrency exchange, making the asset virtually illiquid. However, sKLIMA can be transferred between wallet addresses. By removing staking, users can redeem sKLIMA tokens for an equal amount of KLIMA tokens. Check out the DeFi 101 course at Moralis Academy for more information. Here, you'll learn how to interact with some of the major DeFi protocols using Web3 wallet number one, MetaMask.

rebasing

When users enter their KLIMA tokens, the assets are sent to the Klima stakeout contract. However, the protocol does not require these funds back. The result is a higher proportion of KLIMA tokens in the stakeout contract than the outstanding balance of sKLIMA tokens. To resolve this discrepancy and return to the correct balance, the protocol issues a rebase of the sKLIMA token. This also helps to reduce interference with KLIMA stakeout. Furthermore, supply expansions occur when the platform experiences an increase in the number of stakers or bonders.

the carbon economy

Carbon markets exist to minimize greenhouse gas emissions in a sustainable way, establishing emission limits and financial tools that represent carbon reductions. These markets allow the trading of “issuing units”. One carbon offset unit equals one ton of carbon dioxide (or equivalent), removal or prevention. In turn, this system makes it cheaper to reduce carbon emissions.

In addition, carbon reduction projects can sell carbon credits to pay installation costs and operating expenses. In addition, developers and entrepreneurs have an incentive to profit through carbon emissions initiatives that impact the real world.

Tons of Basic Carbon and Carbon Market Dynamics

The KLIMA token introduces a new type of currency supported by the carbon price. The price of BCTs reflects the price of carbon, which the Klima team hopes to increase with the demand for lower carbon emissions and advances in carbon offset projects. Also, an increase in the number of stakers usually results in buying more KLIMA from the market. As the price of the KLIMA token increases, an opportunity arises for the protocol to sell tokens at a higher price to create an income for KLIMA staking participants. This model aims to encourage new users to help perpetuate the cycle.

Furthermore, as the price of the KLIMA token increases, the discount rate for bondholders increases. This allows for the minting of more KLIMA tokens and increases outbound liquidity. On the other hand, the drop in demand for the platform will cause a reduction in betting rewards and the number of titles that may exist. However, Klima DAO is confident that the carbon offset market is growing fast enough to mitigate any declines that may occur between periods of growth.

KLIMA token

The native KLIMA token is a rebase token and a "floating algorithmic reserve currency supported by carbon offsets". The ethos of the Klima DAO ecosystem stipulates that the treasure will only generate a KLIMA token if at least one BCT is blocked. Furthermore, as each BCT is backed by a carbon credit that commits to removing one ton of carbon, the Klima DAO ecosystem is effectively built around the price of carbon. Consequently, the KLIMA token is a speculative asset that is freely tradable on the open market.

Only when Klima's treasure has enough BCTs to support new KLIMA tokens can they be generated to reward KLIMA stakers. Also, the BCT holding each KLIMA token is locked in treasury. Consequently, the project expects the price of BCTs to rise in tandem with the broader carbon market.

What is the Price Forecast for the Klima DAO (KLIMA) cryptocurrency?

The price of Klima DAO is forecast to peak at $478.15 throughout 2022.
Already in 2023 according to our crypto price prediction index, in 2023 Klima DAO (KLIMA) may reach a maximum level of $920.17, with the average trading price of $684.28.

In 2025 according to our crypto price prediction index, KLIMA should cross an average price level of $1,109.30. The minimum expected price of Klima DAO at the end of the current year should be $1,024.30. Furthermore, KLIMA can reach a maximum price level of $1,130.55.

Where to buy the KLIMA token?

The KLIMA cryptocurrency can be traded on the following exchanges:

  • Hotbit
  • Sushiswap (Polygon)

Conclusion

Klima DAO offers a simple method to engage with carbon savings in the blockchain. While the project does not seek to establish a stable price for carbon in the short term, it does aim to create a better picture of what carbon markets in the chain should look like through voting and policy decisions.

The platform aims to use the volatility of the new carbon economy for growth from the start, so the KLIMA token can achieve price stability with increased demand and stable supply. In addition, the tokenized carbon reduction platform aims to create a “new regenerative money system” that brings transparency, liquidity and infrastructure to the carbon economy through the use of BCTs.

More information about KLIMA

Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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