• General
  • Request for Comment - KLIMA X MOSS collaboration

Summary
Introduce MCO2 into the treasury, by adding MCO2 as another asset that Klimates are able to bond.
Motivation
MOSS is focused on catalyzing climate action and facilitating a carbon market on-chain. Our carbon token has been utilized by corporates such as SkyBridge, One River Asset Management, and GOL (a major Brazilian airline with >50 million customers in LatAm) and is listed on various exchanges, including Coinbase. We believe having multiple carbon assets and bridges will lead to a more robust on-chain carbon market and help diversify Klima’s treasury. Klima’s liquidity engine stands to empower the carbon market and we believe our supported projects and the infrastructure we have built will help expand this impact.
Proposal
MOSS Earth is a protocol that aims to tokenize carbon credits onto the blockchain, similarly to the Toucan Protocol. While Toucan allows for a wide variety of credits to be tokenized, MOSS focuses on carbon credits that come from nature-based projects utilizing the Reducing Emissions from Deforestation and forest Degradation methodology (REDD+). The ‘+’ signifies that these projects also positively impact local communities through various social and economic initiatives. All of our projects are certified via Verra, the largest and most reputable carbon verifier.
We propose to have MCO2 reserve bonds as the next asset in Klima’s treasury. Because this asset is liquid enough on other platforms such as Coinbase and Gemini, there is less of a need for the bootstrapping of liquidity to come from us. If adequate, a KLIMA-MCO2 bond can be opened up to provide liquidity. Currently, there are already over 3 million MCO2 tokens available across Ethereum which can be easily bridged to Polygon via their official bridge. For transparency, we invite you to examine the following resources:
Tokenization process and data
Latest audit report

Furthermore, to facilitate this joint partnership, the MOSS team will bond 15k tons and collaborate to jointly market this effort in catalyzing the DeFi carbon offset market. This collaboration includes the following pledges from MOSS:
Should KLIMA-MCO2 bonds be of interest, we will provide $500,000 worth of MCO2 tokens to Polygon to pair with $500,000 of KLMA from the DAO to form a liquidity pool. This will be shared between us and the Klima protocol.
MOSS pledges to engage in joint-marketing efforts with KlimaDAO to accelerate the development of DeFi carbon markets. Part of this effort includes providing KlimaDAO with $30,000 in funding for marketing efforts.

Vote:
For: Introduce KLIMA-MCO2 and MCO2 bonds
For: Introduce MCO2 bonds only
Against: Do not introduce KLIMA-MCO2 and MCO2 bonds

    A very big yes from me.

    Klima is a spectacular project but we need all the help we can get in terms of marketing
    The existing relationship between moss and verra says it all

    +++

    _NN_ There are Two Yes alternatives as I underestand it?

    a) For: Introduce KLIMA-MCO2 and MCO2 bonds
    b) For: Introduce MCO2 bonds only
    (or, in effect, c) - a)+b) )

      Audit report shows most creidts are REDD and not REDD+ as you state.
      Who else has the ability to create the token?

      Right now, just moss can create tokens. Due to the due dilligence we do on projects.

      What would be the incentive to bonding the Klima and MCO2 pair instead of staking Klima, and bonding MCO2?

        Ultimately, having multiple bridges and green assets in the DeFi x Climate Finance space helps build a more robust ecosystem with higher bandwidth between both worlds. I believe this is an attractive opportunity for KlimaDAO given the quality of the projects that MOSS is tokenizing, their teams experience in this domain, and the commercial attractiveness of their asset.

        Their current projects and their certifications are as follows:
        1) Santa Maria REDD – VCS & SOCIAL CARBON
        2) Madre de Dios REDD – VCS & CCB GOLD (Community, Climate & Biodiversity standard)
        3) Agrocortex – VCS & SOCIAL CARBON
        4) Fazenda Fortaleza Ituxi project – VCS

        As Klima’s role in the market grows, I would expect that MOSS will place increasing emphasis on building liquidity on Polygon, just as other carbon market actors who are involved in DeFI are doing. There’s a great opportunity here to deliver finance to the high-impact projects listed above while introducing an asset that already has strong demand from legacy market buyers into Klima’s treasury.

        Unique tokenized carbon assets which provide exposure to a specific index of offset types help build up the DeFI carbon market and provide more options for buyers. This is the first opportunity since BCT (with more on the way, I’m certain) to increase the treasury’s market surface area and strengthen Klima’s backing. For these reasons I am in support of this proposal.

        good to diversify Klima's treasury. since MCO2 is already liquid MCO2 bonds and liquidity provision seems to be a good move for KLima . question then is how is MCO2 being minted and at what rate?

          cashtrail rate to mint depend on token prices and market price. we expect to mint 2% of the daily volume max

          I am in favor of MCO2 and MCO2-KLIMA LP bonds for the Klima treasury:

          • diversification of treasury with high quality carbon assets,
          • build MCO2 liquidity in line with the fundamental of protocol owned liquidity,
          • demonstrate KlimaDAOs ability to partner with protocols linking traditional markets with blockchain.

          Moss

          1. How can we understand the % of Moss tokens attributed to avoidance vs sequestration? (I didn't see this in the audit?)
          2. What concerns do we have about lowering the value of the Klima token with avoidance projects vs full sequestration?

            Right now, Brazil has 40 % of the global forests and Brazilians are allowed to deforest 80% of the lands. We believe we have to avoid more climate changes by preventing deforestation. Once we reach 25 usd per ton, sequestration projects and reforestation will be more viable, at 12 usd they are not.