DAO Integral Platform for Climate Initiatives is a flexible modular platform, which supports the implementation of different result-based programs and projects. Existing set of smart contracts theoretically might be used to launch and run virtual green investment fund. Specific design of such fund would be entirely up to the Founders. The description herein is one of the abstract options for illustration purposes only.
The Founders would have to allocate specific amount of Mitigation Tokens (MITO) and place it with multisignature wallet or a “Congress” smart contract (Congress) in order to govern the funds collectively by voting. For illustration purposes: 100,000 MITO.
The Congress then creates new DAO and becomes the Operator.
The project owner (the Issuer), who wishes to use the funds, creates Environmental Units Registry and a Security Deposit Contract uploading Project Idea Note to IPFS linked to the Environmental Units Registry. The project implies verification of 1,000,000 units of tCO2e within 3 years.
Independent Entity retained by the Issuer creates Independent Entity Contract, evaluates the risks of performance and concludes that the project has 95% probability of success. The conclusion is uploaded to IPFS linked to the Security Deposit Contract.
The Congress approves of the project and includes the Environmental Units Registry, the Security Deposit Contract and the Independent Entity contract into DAO Core.
Independent Entity establishes Security Deposit at the level of 5% for 3 years. Which means that to issue 1,000,000 environmental units upfront 50,000 MITO has to be placed at the Security Deposit Contract.
The Congress transfers 10,000 MITO to the Security Deposit Contract and 200,000 environmental units are issued and transferred to the Issuer.
The Congress then buys 100,000 newly issued environmental units for another 10,000 MITO at MITO Market.
The Issuer transfers 10,000 MITO to the Security Deposit Contract and another 200,000 are issued and transferred to the Issuer.
The issuer now has 300,000 environmental units to sell and proceed with project implementation and is still interested in implementation of the project in specified time to receive 20,000 MITO back from the Security Deposit Contract.
The Congress now has 80,000 MITO and 100,000 environmental units as a remuneration for 20,000 MITO, which would be returned is case the project is not implemented within 3 years.