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The carbon compensator accumulating DAO on Polygon has rapidly increased the amount of compensation it has in its treasury by increasing costs and diversifying the sources of compensation.
The KlimaDAO Carbon Offset Protocol has now amassed more than 14 million carbon offsets on the network and is causing a surge in the more traditional carbon offset industry.
The purpose of KlimaDAO – get as many carbon offsets as possible to increase their value and make the offsets more profitable.
The Treasury of the Mark Cuban-backed project has added over 5 million carbon offset tokens since the end of November 2021, bringing the total to 14.5 million at the time of writing. Its offsets are tokenized and linked to Polygon (MATIC) in the form of Toucan base carbon tons (BCT) and new MCO2 tokens from Moss, which were first added to the treasury on January 6th. KlimaDAO now owns the majority of the existing 17 million BCT.
Decentralized Autonomous Organization is spending $ 100 million on compensation.
Most of the $ 100 million used to buy offsets comes from bond sales, which are used to increase the funds available to the DAO. Users are encouraged to buy bonds while receiving a discount on KLIMA, the project’s own token. On January 6, the DAO increased the discount on KLIMA bonds to help raise more funds needed to buy more offsets.
DAO’s swift acquisition of carbon offset caught the attention of traditional carbon offset firm Gold Standard. CEO Margaret Kim criticized the DAO in the Wall Street Journal, suggesting that the anonymous team behind the project created transparency problems.
“We are also concerned about the fact that the founders are anonymous, which conflicts with the need for transparency in climate change action in general and carbon markets in particular.”
The KlimaDAO team responded to Kim’s concerns by telling Cointelegraph, “There are ways to provide guarantees without doxing.” Doxing means revealing the true identity of an anonymous person.
KlimaDAO founder Archimedes also raised the issue of anonymity and trust in the January 10 edition of the Planet of the Klimates podcast:
“Will we ever be in a situation where we have to reveal who we are? Perhaps at some point, Klima will become so powerful that world governments will demand to know who we are. “
The team also told Cointelegraph that traditional firms like Gold Standard “may need more regulatory clarity about how the DAO works legally” in order to feel more comfortable with the project’s tremendous growth.
The KlimaDAO team seems poised to take on the challenges of blockchain carbon offsetting in the long term, stating, “We are committed to doing whatever we can to make the DAO a success.”
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