KlimaDAO Increases Carbon Offsets by 50% in Two Months

Carbon offset protocol KlimaDAO has now amassed over 14 million on-chain carbon offset credits and is making waves in the more traditional carbon offset industry.

The goal of KlimaDAO is to acquire as many carbon offsets as possible in order to increase their value and make offset generation activities more profitable.

Since late November 2021, the Mark Cuban-backed project has added more than 5 million carbon offset tokens to its treasury, bringing the total to 14.5 million carbon offset tokens as of this writing. Its offsets are tokenized and bridged to Polygon (MATIC) in the form of Base Carbon Tonnes (BCT) via the Toucan Protocol, and tokenized into the new MCO2 token via Moss, first added to the treasury on January 6th. library. KlimaDAO now owns most of the existing 17 million BCT.

The DAO spent $100 million on carbon offsets.

Most of the $100 million used to purchase carbon offsets came from bond sales, which were used to increase the DAO's available funds. Users buy bonds by earning a discount in KLIMA, the project’s native token. On Jan. 6, the DAO increased the discount on KLIMA bonds to help raise more funds to buy more carbon offsets.

The DAO's rapid purchase of carbon offsets has attracted the attention of Gold Standard, a traditional carbon offset company. Its CEO, Margaret Kim, criticized the DAO in the Wall Street Journal, arguing that the anonymous team behind the project has caused transparency problems.

“We are also concerned that the founders are being anonymous, which is at odds with the need for transparency in climate action in general and the carbon market more specifically.”

The KlimaDAO team responded to Kim’s concerns, telling Cointelegraph: “There are ways to provide assurance without being doxxed.” Doxxed refers to exposing the true identity of an anonymous person.

KlimaDAO founder Archimedes also talked about anonymity and trust in the podcast Planet of the Klimates on January 10:

"Are we going to go through a point where we have to reveal our identities? Maybe at some point, Klima will become so powerful that governments around the world will demand to know who we are."

The team also told Cointelegraph that traditional companies like Gold Standard “may need more clarity on how DAOs can legally operate” in order to feel more at ease with the project’s massive growth.

The KlimaDAO team seems ready to take on the challenges associated with carbon offsetting on the blockchain for the long term, as they put it: “We are ready to do whatever it takes to make this DAO a success.”

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