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Request for Comment - C3 <> KlimaDAO: Support C3 as a branch of KlimaDAO
- Edited
Laplace excellent RfC! Easily in favor of progressing this rapidly to a KIP and really appreciate C3's well-designed protocol org and alliance offer with KlimaDAO. Would be proud to partner with such a forward thinking & positive sum partner 
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Only questions I have for clarity are:
- So in the single staking vaults, we would be earning C3 token rewards for staking our wsKLIMA for example?
- Why do you think to incentivize a C3/FRAX SLP and not C3/KLIMA? In principle, I'd be more keen on the latter (granted from USDC it'd mean trading through 2 pools of USDC/KLIMA & KLIMA/C3).
[Edit: answers from Discord -- no more questions from me!
"1:Yes, you will be getting C3 from staking your wsKLIMA, as a 'risk free method' for those who aren't interested in staking carbon assets.
2: We do want to move it towards C3/KLIMA in the future, but to isolate the initial volatility onto us and not push it onto the Klima token, we decided to pair it with frax."]
I'd be keen assuming community endorsement of this partnership, Policy soon drawing up a KIP to introduce naked NBO and NBO/KLIMA SLP for bonding to diversify/increase the quality of our treasury. I'd also introduce naked UBO and UBO/KLIMA SLP as a second priority, for exposure to GS, and reduce capacity for naked BCT.
Lastly, I encourage other Klimates to appreciate the generous alignment of interests from C3's grant of their DAO token to KlimaDAO. This is strategic for us as seen recently with Toucan that we are meaningfully represented in governance of carbon bridges we invest/promote so much to bootstrap. You can compare with the proposal of Flow 1 month ago offering 2.5% in liquidity mining incentives between 2 LP pairs, only 1 of which with KLIMA, so could be closer to 1.25%. C3 has raised the bar for what it means to be an ally of KlimaDAO and all Klimates 
In favor
This is highly needed, a perfect progression of not only the space but also the utility of KLIMA in Web3.
Wen AMA with our pals at C3; let's get this show on the road!
Great job guys!
Super!
Interesting to create two new pools aligned with GEO and NGEO.
Can anyone explain to me why it's better to have different vintage based tokens rather than align on for example Toucan's methodology? Toucan developed their vintage cut offs based on the market and quality. C3 bases it off existing indices. Is this correct?
We then have 4 pairs which partially overlap (plus Moss and GNT).
Would an alternative be that C3 incentivises bridging to BCT/NCT?
Not a criticism, trying to understand the benefits / drawbacks.
Good idea 
Isn’t C3 just a competitor of Klima ? Nice that they would give us 10% but not sure of the value beyond this to Klima.
CryptoKnight Klima's vision is to be a carbon-backed currency that, through our protocol mechanics, helps build deep on-chain liquidity and a robust Web3 carbon market. Klima is not in the business of bridging carbon credits from the legacy market to Web3. It's thus in Klima's interests to have strong partnerships with entities that are building interfaces between the Web3 and traditional carbon market world (e.g. Toucan, C3, Flow, etc).
Cool project, sounds like yall are Klimates as well. Will this introduce another standard for the credits or are you joining Moss in bridging this into the Toucan meta-registry and building the pooled tokens on-top of them? We want a strong carbon unified market with deep liquidity and don't want to repeat the mistakes of fragmentation of standards/liquidity as in the traditional markets.
So glad to see another entrant providing diversity for bridging!
I'd love to host a Twitter Spaces with the founding team of Klima DAO, C3 and Toucan Protocol so we can brainstorm how to (3, 3) together.
Anyone else up for this?
Simply awesome. Very much in favor.
I would propose that you institute a "selection tax" along the lines that Toucan has proposed for NCT. This is to help clear out old/stale credits.
Specifically, retirements would default to the oldest UBO/NBO credits, and some sort of tax would be levied if the retiring party wanted to choose different/other/specific credits to retire; then, the fees raised through the tax would be used to auto-retire old credits.
odcpw Can anyone explain to me why it's better to have different vintage based tokens rather than align on for example Toucan's methodology? Toucan developed their vintage cut offs based on the market and quality. C3 bases it off existing indices. Is this correct?
We chose to align with the existing indices to lower the barrier for users understanding ReFi. By using CBL Market's GEO and N-GEO contracts, users will have an easier time evaluating the price of the carbon asset.
odcpw Would an alternative be that C3 incentivises bridging to BCT/NCT?
We respect all players in the game, and want to assist everyone in the space. NCT, BCT, GNT, and MCO2 can be voted on via governance to add them to the staking and Klima liquidity gauge (the bridge rewards only pertain to Aither as it is baked into the smart contract) and obtain rewards for their users.
While not confirmed, we are discussing to allow TCO2 can also be utilized for these tokens, and would like to make our tokens TCO2 compliant so that we can also put them into toucan's infrastructure as well.
ollumi 1)Let's say not all 2014 vintages are retired on-chain by the start of 2023, what happens to the remaining 2014 vintage in the pool? Are they just left there as a legacy until they are redeemed?
By default, when a user offsets, the lowest vintage year will be offsetted. For a small fee, they are able to choose which project to offset. This fee is given to veC3 holders.
ollumi 2)Does your collaboration with Aither has specific language as to preference or just intent?
We are partnered with Aither. An announcement from them will come soon.
ollumi 3)This is a question I ask all nature-based pool product proposals since they place a higher value on narrative than a base carbon credit: What's your plan when leakage/project failure forces Verra/GS to pull credits from their buffer pool but your corresponding on-chain offset hasn't been retired? (GS will retroactively adjust the number of credits as well).
We will do our best to minimize this chance by working with Aither to blacklist certain methodologies for C3 approved tokens. When we shift to permissionless carbon pools, it is up to the individual to gauge the risks associated with the approved projects.
As the protocol matures, we plan on posting a governance proposal to divert a portion of revenue to a buffer for edge cases like this.
ollumi Looks like a very promising project and proposal is very well written.
Thank you for your comments!