During this Community Talk, Chuck walks us through the workings of Flowcarbon. We invite you to follow the presentation as the community dives deeper into the following talking points:

  • Why do people care about carbon credits?

  • Free market ideology and environmentalism are often at odds with each other.

  • But some economists think that a free, voluntary carbon credit market could help clean up the planet.

  • The carbon trading market has not lived up to its promise. Progress has been slow.

  • Some say that efforts to trade CO2 have done more harm than good.

  • How are carbon credits produced?

  • Project undertaken to protect or remove CO2 from the atmosphere

  • CO2 protected or removed is quantified & verified

  • Credits issued

  • What is the voluntary carbon market (VCM)?

  • What are the problems with the VCM?

  • Fragmentation

  • Illiquid markets

  • Non-transparent price discovery

  • Expensive intermediaries

  • Closed to retail

  • Low digitization

  • How can tokenization of carbon credits address problems in the VCM?

  • Democratized access

  • Price transparency

  • Decentralized innovation

  • Impact accountability

  • How can tokenization of carbon credits compound problems in the VCM?

  • “Dumping ground” for low quality carbon credits

  • Commoditization of projects with widely varying quality

  • Trust is needed at the point of tokenization

  • What is Flowcarbon’s business model?

  • Strict criteria for carbon credits accepted

  • Carbon credits deposited into bankruptcy-proof special purpose vehicle (SPV)

  • Expecting strict criteria & increased utility to lead to a price premium for GNT tokens and the development of more real world projects that produce high quality carbon credits

  • What is Flowcarbon’s token model?

  • Each GCO2 minted is backed 1:1 with carbon credits

  • GNT is a fungible bundle token which can be used in DeFi

  • Options to Retire, Unwrap, and Redeem

  • Quality > liquidity

  • Tokenomics - supply side

  • Distribution

  • Price discovery

  • Supply unlocks

  • Value capture, distribution

  • Demand drivers

  • Institutional and retail CO2 offsetting

  • RWA-backed collateral for DeFi

  • Conclusion

  • Toucan produced a race to the bottom

  • Can Flowcarbon create a virtuous cycle?

Resources:

  • Published article: https://medium.com/tokenomics-dao/can-flowcarbon-create-a-virtuous-tokenomic-cycle-for-carbon-credits-ecdcde617638

  • Twitter thread:

  • Twitter thread during live Spaces recording:

Watch this episode on YouTube:

Disclaimer:

Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This recording is not tax advice. Talk to your accountant. Do your own research. None of this is legal advice. This community talk is strictly educational. Talk to your lawyer.

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