Overview #
Klyma believes that carbon credits and green tech will always be intertwined. Our society will always need the products resulting from emissions-heavy industry, and artificially suppressing credits or increasing the price is not an effective or responsible route to take in addressing our climate crisis. We need to increase the usage of carbon credits, which will, in turn, increase funding for clean energy and carbon sequestration projects.
Klyma is a true carbon bridge asset. It is not pegged to a ton of carbon offset; the purpose of KLM token is to seamlessly connect offsetters to offset producers while creating investment opportunities that also increase the value of the Klyma ecosystem available to anyone.
Klyma staking mechanics ensure that long stakes will often win out against large stakes. Early adopters always benefit more, but our LockLonger bonus keeps this to a minimum. The ratcheting ratio between KLM and KLMC ensures that longer stakes always pay more than shorter stakes, and it is in the best interest of the staker to stake for the maximum period allowed (5555 days).
The economic gain created by stakers not only increase the value of the ecosystem, thus increasing the supply of carbon credits, it also
The Non-Fungible Carbon Offset #
The Klyma NFCO is a carbon offset token representing 1 Ton year of carbon. This offset index token is comprised of several qualifying verified carbon offsets.
NFCO Coalescence #
Coalescence is a smart contract action of the Klyma protocol. Mixing verified carbon offsets into an NFCO. Every NFCO is an index of various carbon offsets. Klyma aims to produce an NFCO index with high additionality. This means that it has been verified that these offsets would not have taken place through regular business operations and are directed to produce an offset. High-level descriptions of the NFCO will state;
-Duration
-Percentage country of origin
-Percentage of each project type
-Percentage of each vintage year
Each NFCO retains the original information of each carbon offset including;
-Duration
-Project Name
-Country of Origin
-Serial number
-Project type (renewable energy, carbon capture, reforestation, agricultural)
-Vintage year
-Verification Standard
It is important for Klyma to track the type of offset and the proportion of each offset variety through coalescence to minting to burn so educated decisions can be made, based on which credit is the most effective for the entity and positive for the environment. Our goal is to strive to negate the negative externalities of this protocol. This can happen when too much funding is focused on one particular project type, such as reforestation;
Example: A report by Oxfam has found that two of the most commonly used offsetting measures, reforestation and the planting of new forests, were among the worst at putting food security at risk. Far better, according to the analysis, were nature-based solutions that focused on forest management agroforestry – the practice of combining crop cultivation or pasture with growing trees – as well as pasture management and soil management in croplands. These would allow people to use the land for food while sequestering carbon.
Learn more about NFCO’s
Staking #
Staking is the distribution method for the yearly inflation of KLM. Actors who hold a stake of average size and average length realize zero dilution from the inflation of KLM. Stakers convert KLM to KLMC during a stake entry, then back upon ending a stake. KLMC is held within the Klyma contract and cannot be transferred. It is an intraprotocol share.
Ratcheting Conversion Rate #
To stake with Klyma, KLM is converted to KLMC. The first stake is converted at a rate of 1 KIM (.00000001 KLM) per KLMC – 1KIM:1KLMC. When a stake ended the positive rate of return ratchets the ratio.
For example: if there is a 20% gain, the ratio will be increased to 1.2KIM per 1KLMC. This ensures it’s always more beneficial to stay in a stake longer.
Conventional Stake Size and Length Modifiers #
The converted KLMC is staked for a fixed timeframe (1-5555) days. Longer and larger stakes receive bonus modifiers.
Learn More about staking
