Grant Policy the ability to create Inverse bonds as a tool in the policy team’s arsenal.
Klima aims to become a decentralized reserve currency for the carbon market. Through integrations, partnerships, and bootstrapping an entire new market on-chain, becoming the defacto currency utilized in the space. Klima is trading at a premium because of this.
The backing of Klima is composed of carbon assets, which assist in giving Klima a treasury to derive value from, and market operations that the Klima protocol does should aim to increase this backing. In order to do this, the policy team proposes to introduce inverse bonds.
Inverse bonds allow the protocol to acquire KLIMA from the open market by offering an asset in the treasury to the bonder.
This allows users to acquire assets in the treasury at a discount, reducing supply, increasing the intrinsic value of the protocol, and adding buy pressure to the token.
Additionally, regular bonding under backing is disadvantageous to the protocol. This proposal allows the protocol to retain operations under all market conditions.
Klima trades at 2 BCT each. Klima is backed by 5 BCT. An inverse bond can be issued, where a user can obtain 3 BCT worth of assets for 1 KLIMA, obtaining the spread of 1 BCT. Similar to regular bonding, this is given over the course of 5 days.
Allow policy to create inverse bonds as an additional bond lever.
Allow inverse bonds to be enabled under market backing.
The informal forum poll begins now and will end at Feb 13th 18:00 UTC. Assuming in favor, this vote will go to Snapshot.