I'm not sure I understand the motivation for this. From the initial post:
"...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."
Based on the example given, people would take advantage of inverse bonds until Klima is backed by the amount that it trades for. In this example, it would eventually drive Klima to be backed by 2 BCT. The actual value is 6.23 BCT ( ~$27.72). So it would almost certainly cause downward pressure on the price in the short term.
On the other hand, "This allows users to acquire assets in the treasury at a discount..." So it seems like the KLIMA treasury would become a market maker for whichever carbon assets it supports. Allowing you to trade KLIMA for BCT, MCO2, etc. at certain times and BCT, MCO2, etc for KLIMA at other times. But until when? What is the balance we are trying to achieve?
I suppose it would be a useful tool if used responsibly to meet the Treasury's goals. The more and more I type this, the more and more I have respect for how difficult the Fed's job is 😆 . (Stimulate growth while fighting inflation)