KlimaDAO Status Check: December 7th
KlimaDAO’s thesis is that the power of Web3, (3, 3) and the design of powerful market incentives can quickly and radically move the dial on climate action.
Read November’s Status Update here.
OceanDrop will raise funds to support the research and deployment of blockchain based and digital solutions for improved management and protection of the world’s oceans. This drop will be carbon offset with 500 CO2 carbon tons.
KlimaDAO core team members will also donate 500 BCTs to offset the drop.
Sven, with the support of KlimaDAO created KLIMADAO x SVN / 2021. The work is functioning as a black hole for 1 staked $KLIMA token. This token is irreversibly fused into the artworks smart contract. The token is impossible to unstake / redeem and will, as long KlimaDAO exists, express an economic interest and stake in the DAO and therefore the broader carbon market. At launch the work owned 4.14T of CO2 offset. This website is tracking its growth: https://co2compound.klimadao.finance/.
KLIMADAO x SVN sold for 7.5 ETH, with the raised funds being donated to the Ocean Drop.
KlimaDAO Policy Updates
KIP — 5: Align APY. Passed
KlimaDAO in the Media
KlimaDAO’s progress continues to be picked up by leading carbon market news outlet Carbon Pulse, as the traditional carbon markets sit-up and take notice of the growth of the on-chain carbon economy.
“There is a vast array of carbon market ideas brewing in the crypto space, but given the immediate and huge impact of Klima DAO, its business model has been the object of most of the analysis done so far.”
Carbon Pulse has published 5 articles about KlimaDAO since launch, and include its metrics in a number of their wider analyses of the Voluntary Carbon Market (VCM).
KlimaDAO’s impact is also being covered in analytics from other VCM players. Macquarie, the world’s largest infrastructure asset manager covered KLIMA in their Commodities Content distributed by the Sales and Trading Global Macro Strategy Department: “crypto coins lift the bottom of the [voluntary carbon] market”. Macquarie characterises KLIMA as having a “dramatic effect” on the market and being a key driver of demand and a new route for retail investors to get exposure to the voluntary offset market.
KlimaDAO Carbon Analytics
KlimaDAO launched alongside the Toucan Protocol, which enables retired carbon credits to flow on chain and be transformed into BCT in response to the incentive mechanisms created by the protocol. In total, there are over 14.2 million BCTs on-chain.
Just over 11.8 million BCTs are locked in the KlimaDAO treasury. This is more than the equivalent annual emissions of Panama. An increase of 30% locked carbon since last month.
Around 83% of on-chain carbon tonnes are now locked in the KlimaDAO treasury. The USD equivalent of the locked carbon is $136,000,000 (BCT = $6.29).
KlimaDAO Treasury Analytics
The Risk Free Value (RFV) of KlimaDAO has continued to increase, up 5% in the past month. Recent policy changes will continue to incentivise an increasing RFV of KLIMA (read more in the KIP-3 explainer). The backing of newly minted KLIMA exceeded 5 BCT for the first time in November.
An increase in RFV corresponds to an increased runway for sKLIMA reward payouts to stakers. The runway at the time of writing is at its highest level since launch. The treasury has capacity to mint sKLIMA rewards for a further 105 days in the case that no further revenues are made by the DAO.
The dominant strategy to get exposure to KlimaDAO’s growth is to bond BCT or LPs with the treasury to secure discounted KLIMA, and then stake KLIMA to get exposed to protocol growth (3, 3).
A higher percentage of staked KLIMA translates to more stable protocol growth and a wider distribution of sKLIMA rewards to Klimates. The amount of KLIMA unstaked/not used for LP has remained below 1% throughout November.
The number of KLIMA holders has grown from 35,000 to 57,000 (+60%) in the past month.
Visit KlimaDAO’s Dune Analytics page for an overview of key metrics.
The information provided in this Medium Post pertaining to Klima DAO (“Klima DAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this Medium Post should not be relied upon as advice to buy or sell or old such securities or as an offer to sell such securities. This Medium Post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Klima DAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and Klima DAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Klima DAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this Medium Post supersedes any prior Medium Post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither Klima DAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Medium Post by you or any of your representatives or for omissions from the information in this Medium Post. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this Medium Post.