Nature Carbon Ton (NCT) introduces digital carbon credits to the Cosmos ecosystem, providing a carbon token minted on Regen Network's Proof of Stake (PoS) blockchain, specifically designed for global carbon accounting. NCT is backed 1:1 by carbon credits issued by Verra, a global leader in the voluntary carbon market (VCM). These credits adhere to Verra's Verified Carbon Standard and the NCT standard established by Toucan Protocol, offering significant benefits for both the Cosmos ecosystem and the VCM.
The VCM has experienced significant growth, with its global value increasing from an estimated $520M in 2020 to over $1.98B in 2021. The average carbon credit price also increased by nearly 60% during this period. Projects offering non-carbon environmental and social benefits have gained popularity, often commanding a price premium over standard carbon credits. Tokenized carbon credits, such as NCT, bring the VCM to the Web3 world, attracting the interest of Polygon and Celo communities.
Regen Network and Osmosis contribute an initial supply of around 175,000 NCT tokens to Osmosis liquidity pools and the Regen Marketplace, representing just over 10% of the total market share. As the first protocol to bring this real-world assets-backed financial market to Cosmos, NCT liquidity pools enable Cosmonauts to participate in the rapidly growing VCM, earn rewards, and fund ecological projects combating climate change.
The Osmosis community voted in March 2022 to partner with Regen Network, incentivizing liquidity pools on Osmosis DEX for the NCT token. This partnership utilizes Osmosis's store of $REGEN and 140,000 $OSMO to establish a carbon market on Osmosis, launching via NCT: REGEN and NCT: OSMO trading pools.
NCT is an IBC-compatible carbon token, offering a stable, tradable asset that can be easily integrated with Cosmos dApps. One example of potential integration is the upcoming Cosmos project, Cosmic Horizon, which is developing a space trading game that gamifies the purchase and retirement of tokenized carbon credits from Regen Network.
Regen Network Development has partnered with Toucan Protocol to build a two-way bridge for sending NCT-eligible carbon credits between Regen Ledger and Polygon, enabling cross-chain carbon markets. This bridge allows anyone with NCT balances in Polygon to transfer NCT-eligible TCO2s to Regen Network and deposit them in Osmosis liquidity pools.
Cosmos ZERO, the first IBC-compatible carbon token in the Interchain economy, enables Cosmos Layer 1 protocol communities to offset the carbon footprint of their entire validator set. So far, this cross-protocol governance initiative has been committed to by Osmosis, Stargaze, ixo, Evmos, Cheqd, Regen Network, Gravity Bridge, and Empower communities.
Blockchain technology has the potential to revolutionize the VCM by providing capital to regenerative land projects regardless of scale, improving credit tracking from origination to retirement, and enhancing access and liquidity. The introduction of NCT to the Cosmos ecosystem is a significant milestone, benefiting both the VCM and the Cosmos ecosystem by improving the traditional VCM model and bringing a rapidly growing commodities financial market to the Cosmos ecosystem.
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