- How is the backing decided? The backing keeps changing depending on the price of KLIMA, the BCTs in treasure vs KLIMA issued.. etc. Is it based on a moving average (MA)? MA could be considered for calculating the backing.
- Assuming no additional demand for KLIMA (say in a crypto winter), the price will hover around the backing and it'll be a cycle of bonds and inverse bonds. Wouldn't the backing value stagnate? We should've a mechanism to keep increasing the backing.
- Currently KLIMA is backed predominantly by BCT. But in the future each KLIMA would be backed by xBCT + yMCO2 + zNCT +...+... and so on. Then, how would the backing be determined and how would inverse bonds work for all the assets.
- Are those who buy the inverse bonds primarily bonders, who'll eventually bond with KLIMA? If so this is just a stabilizing mechanism and won't help in increasing the backing.
- Any thoughts on increasing the floor of KLIMA? This would automatically bring up the IV and hence the price. But yes if the floor is increased, then if the KLIMA price falls, then the protocol might have to shell out more KLIMA to buy a high quality Carbon Tonne.
1 KLIMA was supposed to be backed by 1 Carbon Tonne (CT) not 1 BCT. But what happens if the price is below 1 CT. For example, at present, if we had BITMOs and an EU based CT was $100, then based on today's price, we've to issue 3.33 KLIMA for 1 EU CT...
I'm confused on this aspect... Maybe Brian could shed some light on this during the policy chats that are planned.