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2022-01-12

Company increases inventory of carbon offsets

The KlimaDAO offset protocol has already accumulated over 14 million carbon offsets in the chain and is causing waves in the more traditional carbon offset industry.

KlimaDAO's goal is to capture as many carbon offsets as possible to increase their value and make the offset business more profitable.

The project's treasury backed by Mark Cuban has added more than 5 million carbon offset tokens as of late November 2021, bringing the total to 14.5 million at the time of this writing. Its offsets are tokenized and combined with Polygon (MATIC) in the form of Base Carbon Tonnes (BCT) by Toucan Protocol and new MCO2 tokens by Moss, which were first added to the treasury on January 6. KlimaDAO now owns the majority of the 17 million existing BCTs.

Much of the $100 million used to purchase offsets comes from the sale of bonds, which are used to increase the funds available to the DAO. Users are encouraged to buy bonds by receiving a discount on KLIMA, a native token from the project . On January 6, the DAO increased the discount on KLIMA bonds to help raise more funds needed to purchase more offsets.

The rapid acquisition of carbon offsets by DAO organizations has caught the attention of traditional carbon offset company Gold Standard. CEO Margaret Kim criticized the DAO in the Wall Street Journal, suggesting that the anon team responsible for the project created transparency problems.