pKLIMA: Aligning incentives for long-term success.

What makes pKLIMA different from normal KLIMA? How will this affect the market dynamics of KlimaDAO?

In summary, the vesting mechanics of pKLIMA will ensure that stakeholders, partners, core-members, and community contributors are all focused on the same goal: growing our carbon-backed treasury for long-term success.

Please note: pKLIMA is a non-transferable token; third-parties cannot transfer or exchange pKLIMA to you.

A fair launch: aKLIMA and KLIMA

KlimaDAO allocated roughly 180,000 KLIMA to be distributed via our Fair Launch through our Initial Discord Offering (IDO) and Liquidity Bootstrapping Pool (LBP).

In the IDO, early community members were given the opportunity to receive an NFT designed for the protocol by artist Sven Eberwein. Holders of these NFTs will be airdropped 50 or 100 KLIMA tokens at launch, depending on which NFT they secured.

On September 14th, LBP participants had the opportunity to get an allocation of aKLIMA (or alphaKLIMA) by participating in the event on Holders of aKLIMA tokens will be able to bridge them to Polygon at launch via a bridge and exchange them 1:1 for KLIMA.

For early community members and holders at launch, the Base Carbon Tonne (BCT) required to back the KLIMA tokens will be automatically delivered to the treasury on their behalf.

The IDO and LBP are critical mechanisms for ensuring that KlimaDAO can launch successfully. They enable the protocol to bootstrap USDC and carbon tonne liquidity to seed our swap pools for BCT and KLIMA. They also allow for the initial distribution of tokens to be distributed as fairly as possible across early participants in the community.

Aligning long-term incentives: pKLIMA

KlimaDAO has also distributed a number of pKLIMA to people who can help this protocol become a success in the long-term.

pKLIMA is not the same as KLIMA; there are no underlying BCTs locked in the treasury to underpin the distributed pKLIMA supply. Nor is pKLIMA the same as aKLIMA; a BCT will not automatically be delivered to the treasury on behalf of pKLIMA holders when they are redeemed. To redeem pKLIMA, holders will be responsible for delivering BCTs to the treasury themselves.

Additionally, pKLIMA is vested based on supply. pKLIMA can only be redeemed incrementally as the total supply of KLIMA grows. Different stakeholder groups will be vested against different supply constraints (outlined below).

The distribution of pKLIMA, and the supply-based vesting, has been modeled on OlympusDAO’s pOHM.

There are a number of benefits for utilising this mechanism:

The Details

The team, advisors, and partners who receive pKLIMA are constrained by a supply share factor. The supply share factor indicates the rate at which pKLIMA can be redeemed. For example, the Team supply share is vested at 7.8%, meaning when the protocol has a supply of 1 million KLIMA, 78,000 pKLIMA can be redeemed by the team.

The supply share factors are also disaggregated down to the individual level, meaning that any individual can only redeem based on their supply share factor within a given group. In the case of the above example, if a Team member held 165 million of the 330 million allocation, they could redeem 39,000 pKLIMA when the protocol has a supply of 1 million KLIMA. This removes the risk of individuals within the various groups competing against one another and redeeming an allocation at a given period in time at the expense of others within their group.

Cumulatively, all of the stakeholder groups can never own more than 15.8% of total KLIMA supply.

The community allocation has no supply conditions attached to its vesting schedule, this is because the DAO will make use of this pKLIMA how and when the community decides through the protocol’s governance mechanism.

Because pKLIMA holders can only redeem their allocation by committing a BCT to the treasury, the protocol will have locked in billions of dollars worth of investment into regenerative projects across the globe when the supply is fully vested. pKLIMA holders will only be fully vested when this protocol achieves its objectives: when our carbon-backed currency has achieved widespread adoption across the DeFi world, and beyond…

Today as a global society we emit 36,000,000,000 tonnes of CO2 per year, and this number continues to climb. Immediate action, coordination and innovation is needed — this is our solution, and our path to success.


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 hold 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.

KlimaDAO enables mass participation in the carbon markets and governs the development of KLIMA, an algorithmic, carbon-backed currency.