We all have that one crypto project that we want to go back to. Hive is a project and a community where I reside so that cannot be a project under this consideration for me. There is one project that I have known for almost two years now. I was always hesitant to get into this community due to the limited knowledge I had back then about the community structure. Partly, it was also due to the fact that the DAO token was not launched in 2020 and I made a mistake to not join their Discord at the right time.

After this pretty long introduction, let me tell you that the project I am talking about is KLIMA DAO

Why was I Interested in this Project?

I was aware of this project since 2020. I listened to a podcast where the podcast owner interviewed the founders of the KLIMA project. I liked the idea and the fundamental behind the project from the climate perspective. I am a climate policy expert by profession. I understood what they were trying to do with the voluntary carbon market.

The TLDR of this project is to bring the voluntary and compliance carbon market that exists in the traditional finance space to crypto by registering traditional carbon credits to blockchain. That way, all carbon units are tradable and can be tokenized. One has to have a fair bit of carbon market concepts and fundaments to properly understand how the project is trying to bring carbon financing into crypto.

BCT token and Greenhouse Gas Emissions Reduction

Base Carbon Tonne (BCT)is a digital token that links traditional carbon finance market with the crypto world. Anyone with carbon credits (Verra - a company – standard) can use KLIMA project to link them to BCT. That way the DAO controls the circulation of BCT token. They put BCT in their DAO reserve to limit the availability and hence reducing the market supply. The idea here is to increase the market price of carbon credits and require companies to either buy expensive credits or to reduce their Greenhouse Gas emissions. This is a free-market capital standard to solve the global problem of climate change.

BCT is not the only token – KLIMA

BCT links the traditional and crypto market but there is another token that represents the community behind the project. It is called KLIMA. The DAO allows users to trade BCT- KLIMA pair giving KLIMA tokens while purchasing BCT. That way, the market will KLIMA and the DAO will have access to all BCTs. A report suggests that there are more than 14 million BCT tokens ($95 million) that are not available to offset in the traditional market held by KLIMA DAO.

What’s happening with the Project?

The project team has created spaces where you can stake KLIMA, or pool the token with BCT to provide liquidity in the market.

Users can stake their KLIMA tokens with 28K% APY at the moment of writing the DAO app. By staking KLIMA tokens, users will receive sKLIMA (staked Klima). The benefit of staking their token is that the DAO will distribute rewards on sKLIMA tokens whenever the protocol makes profits selling carbon bonds.

There are two liquidity pools that users can participate. BCT token can be paired with KLIMA and USDC on Sushiswap where users can earn fees. The LPs can be bonded with KLIMA treasury to purchase discounted KLIMA token.

In addition to that, users can also purchase BCT and hold and take part in the project. Recently, the DAO also included MCO2(MOSS Carbon Credit Token) as a bond to purchase discounted KLIMA.

When did I Participate in the Project?

I waited two years to get into this project. I don’t know why I did not get involved earlier. Actually, I do. Although I was well aware of the climate market and carbon bond aspect of the project, I did not know what DAO was. I was put off by the idea of a community or a group leading the work. In 2020, I did not know much about blockchains, community governance and governance tokens. I stopped myself and did not go through the documents to better understand the governance side of the project.

The other factor that limited my entry was my inability to go through Discord servers. The project airdropped KLIMA tokens to early social media users as a reward. I missed that as I did not join them early enough.

How do I feel about the future performance?

The KLIMA token price is tanking after that initial surge when they got launched on Polygon. The token price went up to almost 4K. I FOMOd and got into the project in that price zone. The price dropped after that surge and I bought more tokens. At this point, the token price is pretty low compared to the ATH – around $123.

A pretty bad dump.

I am not sure what the price action will be in the future. But I am very bullish with the fundamental idea behind the project concept. I think the blockchain tech can disrupt many areas and it is genius to link traditional carbon market with the crypto space.

Let me know what you think of the project. Have you take part or have you looked into the project fundamental?

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Here are the relevant links if you want to explore
https://dapp.klimadao.finance/#/stake
https://docs.klimadao.finance/