There are approximately 672,000 tons of HFC-23 credits in the BCT pool, the KlimaDAO community has voted to remove them from the pool to improve the quality of the credits contained.
ClimateDAO
ClimateDAO
SAN FRANCISCO, Sept. 15, 2022 (GLOBE NEWSWIRE) — KlimaDAO announced that it has used a limited amount of its own inventory to remove and “burn” the HFC-23 credits from the Base Carbon Tonne Pool. – an act that means that the environmental benefits of these tokenized carbon credits cannot be claimed by any entity or organization.
HFC-23 carbon credits were removed from the Verra registry in January 2014 after being banned in compliance markets, citing concerns about HFC-23 plants playing the scheme for new carbon credits to create a profit that could be resold in the market.
Two carbon projects had been registered with the Verra registry prior to expiration, with an issuance from the Yingpeng HFC23 decomposition project of 4.5 million credits. A number of these credits remain active in the Verra Registry, meaning their environmental benefits can continue to be claimed through the decommissioning of the credits. Data from AlliedOffsets shows that by 2020 these credits had been withdrawn by a number of companies to claim their environmental benefits.
The original design of the Base Carbon Tonne pool by the Toucan protocol allowed a wide range of carbon credits to be deposited in the pool provided they were vintage 2008 and up. It was only when a number of HFC-23 credits were deposited into the pool and concerns were raised about the quality of those credits that Toucan’s HFC-23 credit escrow was blacklisted.
Today, KlimaDAO holds over 90% of the base CO2 ton pool in its treasury reserves and its liquidity pools on the SushiSwap platform. The primary function of the credits within the liquidity pools is to allow users of on-chain carbon to purchase tokenized carbon credits and claim their environmental benefits from them efficiently and transparently by aggregating them on the blockchain using KlimaDAO’s retirement aggregator infrastructure withdraw.
The story goes on
To address concerns about the quality of these credits, KlimaDAO used its decentralized governance process to host a discussion with its community members on its forum about removing these credits from its ecosystem. A token vote by community members on the SnapShot platform was accepted with 83% approval for the credits to be destroyed.
The approximately 672,000 HFC-23 credits in the BCT pool have now been burned and removed from KlimaDAO’s tokenized carbon credit ecosystem.
Drew Bonneau of KlimaDAO said: “Both the market commentary and the available data on HFC-23 credits tell us that this credit is viewed as substandard at best and worthless at worst. After discussing the issue with our community, it is clear to us that removing these tokenized carbon credits from our ecosystem is the desired approach.”
Bonneau added: “One of our strengths as a DAO is that we are able to bring the perspectives of our 70,000 strong community, which includes a number of advisors from across the carbon market – we are grateful for their engagement and encourage further participation with the.” governance processes of our DAO as we continue to evolve our ecosystem in line with market demands.”
About KlimaDAO
KlimaDAO is an on-chain scaling solution for the Voluntary Carbon Market. By combining token certificates with a blockchain-enabled technology stack, KlimaDAO wants to open the market for more transparency and efficiency.
If you are interested in participating in the KlimaDAO governance process, join the forum. If you are a company looking to offset your carbon footprint, start here.
press contact
Natacha Rousseau
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