What is the Klyma Protocol? #
Klyma is a Decentralized Autonomous Organization to shift the power of carbon offsets to the people. Providing the infrastructure needed to take action against climate change without causing negative financial externalities. Klyma takes an encompassing approach offering a new way to organize the carbon credit industry.
Klyma solves the problems with legacy, and modern carbon markets. #
- Dishonest Units: Carbon credits require a time variable to truly be a useable token of offset. Our NFCO’s Non-fungeable carbon offsets provide at least 1TonYear of carbon sequestering or offset.
- Carbon Backed Currencies: A carbon backed currency pits the holders against the environment. It is in the holders best interest for carbon backed currencies to hold the carbon the maintain token price. A carbon backed currency must retain a credit for each token, this prevent a fair market value to be established through natural price discovery.
- Inefficiency: Klyma eliminate many actors which fragment the market. Each of these causing inefficiencies, and causing the cost of carbon to be artificially higher without compensating the producers. Klyma provides a 5% royalty to producers above base rates to ensure if actors attempt to build upon the Klyma protocol, the producers are compensated.
- Opacity: Ascertaining the origin and chain of custody of a carbon credit can be difficult. This is why Klyma is moving to replace the legacy market instead of growing off of it to provided a perceived trustworthiness. Klyma will provide fully transparent chain of custody information that can be viewed back to the producer. Our NFCO’s make it impossible to double-spend an offset. To retire/count the offset they must be burnt. The public can simply view the offset amounts, project types, project locations, and offset durations of all offsets burnt by any Klyma Certified entity.
Through Klyma’s unique protocol it will disrupt the carbon market from the foundation up, making all other actors superfluous by means of moving in the true, correct direction. Klyma will provide accountability and rewards for all actors in the new Klyma carbon system, so we can all move forward freely while we repair the planet together.
What is the point of Klyma? #
Klyma creates a vertically integrated incentive structure. By utilizing intelligent staking mechanics and tokenomics we make it more profitable to sequester and cheaper to offset. Incentivizing both carbon offset producers and companies wanting to offset their carbon emissions. Klyma does not enrich one side by taking more from the other.
Why is access to affordable offsets important? #
It is naïve to think that carbon caps and carbon taxes will stop at corporations. Every human on the planet has a measurable carbon footprint and some jurisdictions have begun a dialogue on taxing citizens carbon emissions. Offsetting carbon should not become more expensive, it should become cheaper. Klyma takes the power away from governments hoping to impose another tax on citizens and businesses and puts it in the hands of the public. Klyma commoditizes the environment in a way no other protocol has.
Klyma Will Become the Base Infrastructure for Carbon #
Klyma has long term vision to become a full integrated, decentralized base infrastructure for carbon. Providing verification through verifier nodes, dual liquidity to optimize buying and selling of carbon credits by producers and purchases.
Minimize Negative Externalities of the Carbon Market #
Environmental protection has a legacy of being heavy handed and unbalanced. This can be attributed to a plethora of catalysts. Almost all boil down to taking a regional, or national approach to a global problem. The lack of inclusion is not only apparent geographically but also economically. Some negative externalities that Klyma will prevent are the following;
- Agricultural snowball effect
- The use of farmland to moving from food production to carbon credit production due to an inflating cost of carbon. In circumstances where food is being produced, supply being low and price increasing. Oxfam international states food prices could rise by 80% by 2050, according to some estimates if offsetting through forestry is overused.
Disuse of carbon offsets - There is an idea that more expensive carbon will cause companies to stop relying as heavily on purchasing credits to offset their emissions. This can become a detriment to new carbon capture and sequestering technologies providing more economy than conventional reforestation.
- However what this will likely lead to the following:
- 1. Is carbon tax being cheaper to pay, which results in money having to flow through inefficient governments to preform positive environmental work.
- 2. Companies performing the same sequestering actions on a local basis. This fractures the market globally in two distinct, negative, and bonded ways. For instance reforestation in local urban areas may seem like a great improvement
This reduces the incentive for less developed countries to sequester carbon and it reduces the incentive for more developed countries to pay for carbon breaking the model that their protocol is built on. This continues as it fractures the market completely as companies continue to offset on their own by performing work on small dedicated project all needing verification and adding additional layers of complexity to an already complex system.
