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Introducing the world's pioneering liquid market for biochar

Introducing the world’s pioneering liquid market for biochar

Introducing the world's pioneering liquid market for biochar

Could Onchain Climate Action Hold the Key to a Sustainable Future?

In a groundbreaking development, Toucan’s newest RWA, CHAR, suggests that onchain climate action could be the answer to a sustainable future. The CHAR carbon pool represents a significant advancement in creating a more efficient and transparent carbon market. By bundling carbon removal credits with similar attributes, CHAR provides liquidity to an otherwise illiquid and inefficient market. This innovation also allows for programmable carbon integration into web3 innovation, including carbon-backed assets, green NFTs, regenerative DeFi, and more.

CHAR serves as open infrastructure for the automated buying and selling of biochar credits at a transparent market price, accessible 24/7. The process begins with tokenization, where users bring carbon assets from connected source registries onchain. Tokenized credits (TCO2s) are then minted on a 1-1 basis, with each TCO2 representing one tonne of carbon removed from the environment. These eligible TCO2s can be deposited into a carbon pool, each with its own set of rules or filter to determine eligibility.

Each carbon pool issues its own carbon pool token (e.g. CHAR), which can be redeemed for TCO2 tokens held in the pool. This system facilitates the conversion of Puro removal credits into CHAR tokens, providing liquid markets and real-time pricing. The first liquid market for CHAR has been launched on the Celo blockchain, aligning with Toucan’s mission to scale climate finance.

To address challenges in carbon pool design, Toucan and Neutral have implemented a pool health adjustment module to maintain project uniqueness while promoting standardization for liquidity. This adjustment module applies dynamic fees to deposits and redemptions, enhancing the overall health and attractiveness of the pool.

In the face of a warming planet, onchain climate solutions like CHAR offer a path towards equilibrium within planetary boundaries. Carbon markets, currently fragmented and inefficient, can benefit from innovations like CHAR to drive scalability and market participation. By transitioning to onchain CDR infrastructure, carbon markets can unlock potential for growth and regenerative systems that go beyond neutrality.

As we strive towards a world of prosperity within ecological limits, collaboration is key. Builders, content creators, organizations, and asset managers can all play a role in integrating climate action, educating others, compensating for carbon footprints, and diversifying into clean commodities. To learn more about CHAR and get involved in onchain climate action, visit Toucan’s documentation or reach out via Discord or email.

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