Known as Olympus on Polygon (algorithmic token project on Ethereum), Klima DAO is a DAO (DAO) and DeFi protocol that aims to boost the climate with carbon-backed algorithmic currency KLIMA by increasing the price of high-carbon assets Encourage emission reduction.
About Klima DAO
The Klima DAO ecosystem contains a total of 4 tokens, TCO2, BCT, KLIMA and sKLIMA. Users can directly access BCT and KLIMA. BCT is similar to DAI in the above Olympus, and KLIMA is similar to OHM.
TCO2 is the general term for tokenized carbon offset tokens, which are tokenized by the Toucan protocol to make them available in DeFi. TCO2 represents a token in a series of projects, such as through afforestation, renewable energy projects, carbon capture and storage, etc., which reduce the emission of greenhouse gases in the atmosphere, and finally tokenize it into TCO2.
BCT is the token of the basic carbon pool, designed by Toucan and Klima DAO. Each BCT represents 1 ton of verified carbon offset tokens, which means that 1 ton of carbon is reduced or removed from the air. Since the carbon offset project, year and other details are included in the TCO2 token, each token is different, and the token is just prefixed with TCO2. The basic carbon pool accepts a variety of TCO2 tokens and is unified into BCT.
KLIMA is the Klima DAO token, backed by BCT tokens locked in the vault. Staking KLIMA into the contract will receive sKLIMA to facilitate the calculation of shares.
Just as each OHM in Olympus has 1 DAI as a backing, KLIMA chose BCT, which represents carbon offset, as a backing. As the protocol grows, more BCT is absorbed, the supply of carbon offset tokens on the open market decreases, the benefits of carbon offsets and the cost of carbon emissions increase, thereby improving the environment.
The assets in the treasury represent the intrinsic value of KLIMA, and the current agreement has 17,282,041 carbon offset tokens, representing 17,282,041 tons of carbon dioxide emission reductions. Based on the BCT price of $3.18, the BCT controlled by the protocol is worth $54.96 million.
The current market value of KLIMA is $80.67 million, of which 95.27% of the tokens are in the pledge contract, and the next rebase will bring 0.19% of income to pledgers.
During the expansion period, the mechanism of Klima DAO will cause positive feedback to the whole system.
1、High APY attracts users to participate in staking;
2、Stakeholders need to buy tokens from the market, pushing up the KLIMA price;
3、After the price rises, the discount of exchanging BCT for KLIMA through the bond function increases;
4、More users sent BCT to the treasury to buy bonds, and the treasury assets increased, providing support for the price of KLIMA.
When the market price of KLIMA is lower than the intrinsic value, the protocol can also use the reserve to purchase KLIMA tokens from the secondary market to ensure that the KLIMA price returns to the intrinsic value.
Klima aims to be a decentralized, algorithm-based reserve currency. At a high level, Tokens serve 4 purposes:
- Each KLIMA Token has an Intrinsic Value (IV) backing that Token. While there can be more assets backing the token, the token has a minimum value. Therefore, the protocol has a price floor, but no price ceiling. As of today, the intrinsic value is 1 ton of carbon. In other words, each KLIMA token is backed by 1 ton of carbon.
- KLIMA 代币只能由协议铸造或燃烧。该协议充当代币的“去中心化中央银行”，具有扩大和收缩供应的能力。
- When KLIMA trades above IV, the protocol expands the supply and sells KLIMA to the market. Because the protocol can create more supply, as long as there is an IV backing the token, it generates excess reserves from the spread between the IV and the market price.
- When KLIMA trades below IV, the protocol buys and burns KLIMA, shrinking the supply. Because it buys tokens with intrinsic value, the protocol increases the reserves of each KLIMA from the spread.
The initial circulating supply is 235,274 KLIMA
In addition to community distribution, the KLIMA/BCT liquidity pool is seeded with the remaining ~6200 aKLIMA from LBP, plus an additional ~11k KLIMA minted by the core team using some of the BCT they procured for the launch.
In summary, the initial total supply of KLIMA is 252,586.
How to join Klima DAO
To participate in Klima DAO, you first need to buy BCT or KLIMA directly from SushiSwap on the Polygon network. To get the most benefit from using KLIMA DAO, users achieve their “bonding curve” callout by depositing BCT or SushiSwap liquidity pool token BCT-USDC LP or BCT-KLIMA LP into the Klima DAO treasury in exchange for discounted Klima. Each bond has its own discount rate, depending on the Treasury’s demand for such assets.
Like Olympus DAO, users will benefit when they get rewards for staking Klima on KLIMA DAO. As of this writing, APY is around 955%. Currently, Klima DAO has successfully accumulated about 17 million BCT in the warehouse.
1) Launch BitKeep app, switch to Polygon, tap Browser, then search for SushiSwap;
2) Browse the DApp details and tap Confirm to access the DApp;
3) Switch to the Polygon chain in SushiSwap, search for the trading pair USDC/KLIMA, and make an exchange for KLIMA;
4) After getting KLIMA, go back to the Browser page, search for KLIMA and enter the DApp;
5) After entering Klima DAO, you can see data about rebase;
6) Scroll down to find the interface of Staking, where you can put the KLIMA exchanged in the above steps at stake to participate in the ecosystem; you can then go back to the DApp to check your staking profit.
However, investors need to be reminded here that because the market value is already high enough, it is extremely risky to buy KLIMA and pledge it now.