DonkeyKong
Sorry, I mean to say that the users who would trade their KLIMA for BCT (if we gave it in that asset) would use it for offsetting.

The most easiest path forward is utilizing some of the freed up USDC if part of the BCT/USDC pool was redeemed. In other words, users are able to redeem USDC for Klima.

Alanos86 in that scenario, wouldn't KLIMA no longer be backed by 1 carbon tonne per token, it wild have a backing that shifts higher or lower over time?

    InTheDark It seems that there are a couple of different backing figures if you look at the Main Dune https://dune.xyz/Cujowolf/Klima-DAO. The current backing seems to be about 4 BCT that is BCT in treasury divided by Klima supply. Another backing figure is about 6 BCT. That counts also BCT that is owned by Klima and exist in liquidity pools. Yes, those two backing figures may move up and down. The intrisic value (IV) of Klima, that is one Klima equals one carbon tonne, is another story. Maybe somebody more knowledgeable could explain that. And that IV will be defended too if needed but with no inverse bonds but directly buying Klima?

    Why a inverse bond Klima/USDC have a vesting period of 5 days? With a regular bond a vesting period is necessary to prevent instant selling, but since the bonder will receive USDC, couldn't be instantaneous or shorter?

      gui_m_p

      A vesting period allows us to manage our resources more effectively, as its spread out over time. If we did it instantaneously it would be similar to a rage-quit and use all the resources at once.

      The most common example of this you see in banks today is the insurance a bank gives you to prevent bank runs. Because insurance is in place, many people are content with leaving their assets their, securing a larger value than what actually can be secured.

      I dont understand at all how inverse bonds would work, how this would affect KLIMA, or how so many people can be for something that is so unclear. I don't want to spread FUD, but I think we need to have a much more clear explanation of the value proposition, impact, and how this would actually play out.

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