Are Carbon Credits really a Big Deal?
The above article shows how crucial carbon credits are to Tesla's profitability and regulatory pressure from the United States government regarding the same also could have influenced Elon Musk to speak out regarding Bitcoins massive energy utilisation.
A question all of us must ask ourselves is what is the ultimate hedge to crypto investment:
DeFi 2.0 with $OHM and all the reserve currencies that have become popular seem to be the go to option but again the reserves are still backed by crypto assets. $KLIMA however offers a different solution where each $KLIMA is backed by a TCO2 locked in the Klima DAO treasury. KLIMA has an intrinsic value underpinned by the cost of TCO2s. KLIMA is an ERC20 token.
A TCO2 token (Resource 1) is the general term for fungible tokenised carbon offsets. When you fractionalize a BatchNFT, the ERC20 token will have TCO2- as a prefix, followed by an information-rich name that includes the registry of origin, the project, the vintage, and so on.
How Does KLIMA Work / Make Money / The Ponzi Run :)
Klima has three 8 hour rebases per day giving ~0.5% each time. This amounts to an APY of ~30,000%. Here is how it works:
1. Buy $KLIMA and stake to get $sKLIMA and receive rebasing rewards in the form of freshly minted $KLIMA
2. Provide Liquidity in BCT-USDC / KLIMA-BCT Sushiswap LPs to buy KLIMA at a discounted rate.
3. Due to the demand to buy $KLIMA at a discounted rate, the market price of the bond is much higher than the actual value. The purchasers of the bonds do not mind paying a premium because they get to buy $KLIMA at a discount and stake to earn more than 30,000 APY.
4. This premium / profit on selling bonds allows KLIMADAO to mint new $KLIMA and issue to sKLIMA stakers.
The below diagram explains the entire process in a more digestible manner:
To find out how you may fare if you participate in KLIMA feel free to check out the LINK BELOW:
