I would also like to see the "rescue operation" fully resolve before this proposal goes to an official snapshot vote. Currently, we have seen a written commitment from Toucan the value rescued from BCT will be distributed via a board of "stakeholders", with Klima being a member of the board, but 0 visibility in what percentage of the board that is, nor any voted and confirm roadmap of value distribution from that pool other than "for the greater good of the ReFi community." There is already a significant concentration risk for the Klima treasury posed by the proposed Moss Toucan partnership, it would reduce Klima to a single point of failure if further commitments were made to the NCT pool without even fully resolving the BCT situation.
Request for Comment: Toucan NCT Bonds
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IBuyShitCoins I have the same opinion - I'll vote yes BUT ONLY if we have tangible results (e.g. specific dates and plan) regarding arbitrage reimbursement.
Also, in the proposal, Toucan is talking about the need for a single standard and unification but they (I suppose without consulting with Klima DAO) chose to introduce NCT-USDC pool that is in direct contradiction with Klima DAO's goal - to be the central carbon trading pair of the on-chain market that would make adding new pairs MUCH EASIER and thus helping the whole on-chain carbon market.
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I feel there has not been a clear explanation provided so far as to how Toucan is going to handle a) the situation with BCT and b) the issue of how solid any guarantee that it won't happen again with this current NCT pool is. We all love Toucan and what it stands for - on that basis, I hope Toucan can take the time to actually facilitate communication and transparency with the Klima community which has only goodwill for the team.
Echoing all of the above. I am also not very keen to pay twice for the same carbon, especially as one of many who have supported the treasury all the way at much higher prices via BCT purchases, enabling Toucan to get where they are today in the first place. In the real world, business dynamics don't really work like that when you are heavily relying on 1 customer to start and grow.
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I am abstaining from this vote until further clarity is established around Toucan's RFC Fund Allocation, as outlined here: https://governance.toucan.earth/t/rfc-fund-allocation/17. KlimaDAO utilized capital raised during our LBP to seed the first BCT pool. Part of this initial liquidity included 463,825 nature-based tonnes which fit the criteria of NCT (current value = $3,800,000). I'm hopeful that we can move swiftly to return this value to Klima's treasury and regain strong alignment between Klima and Toucan.
On another front, I'd like to see additional information on how Toucan plans to cultivate offset demand in the ReFi space such that NCT is not overly dependent on Klima. This is one of our core criteria for examining bridging partnerships and was an active area of discussion with Flow/Goddess DAO. I appreciate your team's thoughts on this @Robdog.
IBuyShitCoins
Well spoken.
Things aren't white or black and often don't happen as expected initially. These projects die easily if you're unable of swift decision-making. At that point there was no perfect solution, one that satisfies everyone, and there never will.
Many people will invariably disagree with whichever path is finally taken. Toucan will deliver what's likely the best available solution. If you no longer at that point believe in them vote with your feet.
Its time to acknowledge that it's been two weeks, we now have a fully functioning nature-based token - an incredible ReFi feat, offering immense possibilities - and it's time to move on and keep building.
GoingJohnGalt You're right, it's time to move on but Toucan needs to fulfill their promises first. What was done was done and I have no hard feelings towards Toucan but the arbitrage situation needs to be fully resolved, the sooner the better.
IBuyShitCoins +1 on this and other comments highlighting the need to actually resolve this before we can move forward.
Struggle to see how Toucans words about working towards common are translating to actions.
ollumi We are having an open discussion around the value distribution on the Toucan governance forum https://governance.toucan.earth/. Before moving forward with voting, we are giving the community some time to put forward their RFCs.
To answer your question about the board, the funds are now in a 4/5 Multisig that consists of:
Klima DAO, BICOWG 1, Toucan Protocol, Moss, Regen Network
On another front, I'd like to see additional information on how Toucan plans to cultivate offset demand in the ReFi space such that NCT is not overly dependent on Klima
Completely agree. Moreover, it's hard for Klima to absorb all new supply through the bonding mechanism without a demand for offset. So in a ideal world Toucan should nudge/direct the demand for offset to Klima Infinity.
gui_m_p and @Dionysus the team has been working hard on solidifying demand for on-chain carbon in the broader ecosystem, which resulted in numerous leads. To my knowledge, we can't publicly announce any particular parties at this moment, but will hopefully be able to do so soon. Someone else from Toucan will most likely expand on this further here.
Can you make the images either scalable, or links to the originals? Its not possible to read them, and they have some very nice looking details that are lost in the blur!
You're right, the situation isn't fully resolved yet. You can see our suggested timeline for resolving the outcome of the mass-balancing activity here: https://governance.toucan.earth/t/rfc-governance-process/16. We aim to announce a final decision on the allocation of the funds on 11/3. I think this also refers to your comment @ollumi
I also invite you to submit a RFC on our governance forum, if you have any alternative courses of action you'd like to see implemented.
In regards to your points:
The value that was secured was never priced into BCT in the first place, and members of the Toucan core have advised against depositing nature-based carbon credits into the BCT Pool at/before launch.
The LPing was part of/an outcome of the mass-rebalancing action, and, as previously stated, it would have been hard for Klima to co-execute it, as such decisions need to go through public voting with the Klima community (thus alerting profit-driven actors)
tiltom see my comment above re. specific dates (outlined here https://governance.toucan.earth/t/rfc-governance-process/16)
In regards to a single standard, we are referring to TCO2s, the semi-fungible carbon tokens that back BCT and NCT; not BCT or NCT or any trading pairs (as a large advantage of on-chain carbon is that it can easily and verifiably be retired by anyone, not only traded or held).
Having one single carbon token standard while still preserving the attributes and complexity of carbon credits addresses many issues with the existing carbon markets, like fragmentation of credits in different registries, while at the same time still allowing a healthy carbon trading system.
I Wholeheartedly agree with the sentiment here from all the apes and I think it's absolutely ridiculous that you guys even consider the fact that it might be OK for you to come arbitrage 5 million dollars of value out of the Treasury and ask klima to burden seeding your pool back at a higher price with new investment that you alone benefit from. You guys are fucking crazy. I hope no one votes yes on this
I personally am okay with the mass rebalancing undertaken by Toucan. I think they acknowledged that there was an oversight in the structure of their token and they took the steps to retain value. I am also confident that once they have established better community governance that the rescued value will make its way back to Klima. I am not okay with delaying bonding of NCT as it delays climate action and stalls the accumulation of credits. I feel a lot of the votes here are spiteful and many of those on this forum have whipped themselves into a frenzy and are overstating the impact to Klima. I understand price is down, but it’s not because of the mass rebalancing.
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ela How you can claim that the value was never priced into BCT is really beyond me. If you do a back of the envelope calc, you can easily see that based on the suggested volumes and using $8 as a reference, it is anywhere between 25-50 cents per BCT. Granted, not massive, but BCT is currently at $4 and used to be at $5+ before the actions. If NCT doubles and goes to $15, then we are looking at close to $1 of value. Now, multiply this by the BCT held in the treasury and then let us know again why we should be fine with the resulting loss.
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This is a no for me until the aforementioned issues with the BCT pool raid is resolved.
I can't believe the Toucan team expects the KLIMA community would ignore what amounts to theft from the KLIIMA Treasury.
@Robdog This request amounts to adding insult to injury. Write the wrong that has been committed against the KLIMA community then we can discuss a path forward.