Klima 2.0 Fair Launch: Unlocking the Future of Carbon Markets

Oh hey there! I was just talking to my plant. But you guys know, if you guys are longtime viewers of my channel, Boxplant has always had some great ideas when it comes to the environment because you know it needs to absorb some carbon. So this video we're gonna be focusing on another use of the blockchain and I think this use is really important because well the environment's not getting any cooler. In fact there's a lot more carbon emissions and the future is really about keeping track of those carbon emissions and more specifically carbon credits. So that's kind of the context of this video. I feel like it's not something that we don't explore it but what makes it very valuable and what makes blockchain particularly valuable is we can have a very good tracking for where carbon credits go and it's transferred. So what we're gonna do in looking this video is Klima Adel. So they kind of started off in 2021 as a project to just track carbon credits and make a market for this to track it but they're recently getting a huge upgrade and preparing for that 2025, 2030, 2035 future where the world needs to be a lot greener than it is currently now. So this is really a fundamental infrastructure play for the future and because of this huge upgrade we're making a video to talk a little bit about you know how they're gonna work, how the 2.0 works and what they're building for that. So anyways it's getting hot out here for real and so let's go inside and check out what they're doing. We're back in our studio and I feel like this is a point of time where we really need to spend a little bit of time working through kind of why we need a huge infrastructure to support sustainable growth in the future. Why this resonates a lot with me is like because politics aside I had some really good profs back when I was studying chemistry and one of the factual evidences that's already in place is that we can take a look at how much carbon was in the Earth's atmosphere by taking ice core samples basically going into Antarctica drilling and then throughout the years you can see how much carbon was there in the atmosphere because kind of the ice traps that. And we've seen basically after the Industrial Revolution the amount of carbon dioxide in the atmosphere is just going straight up and at such an alarming rate. And I feel like this is the situation where we as humans we can make as much stuff as possible but at the end of the day the environment is the environment and the amount of carbon dioxide in there because it is a greenhouse gas is going to greatly impact the temperature of our planet. And because we're not adapted to live in very hot environments and nor is the rest of the species on this planet we better do something big about it soon. So basically ice core samples really shown that like even dramatically speaking Earth's carbon just went straight up and that's really scary. It's a time bomb. It's a time bomb. At the end of the day here's a good report to just anchor everything. So this whole idea of carbon credit tokenization these are powerful tools to ensure that humanity survives. So basically what it's saying is that this is not only important but it's also going to be the future of how we spend. If we zoom out a bit and in terms of humanity's survival so long as we manage these credits and offset enough we'll survive as a species. So it's easy easy easy said and the best way to do this obviously is with blockchain because there's a lot of transparency about who's going on and introduces a lot of governance features and makes everyone involved. So I think that this is like yet again one of the primary uses of blockchain. We said you know Bitcoin was great for building decentralized trust. trust. Yeah. But on top of that it was great for building communities transparency and Dell. All right. So that's that's kind of how it works. So with these big pictures and humanities survival in mind. I mean that's what my interest in. I'm interested in humanity's survival. That's where I'm interested. Yeah. Then we can talk about now how this current infrastructure is built to it. Now this is the first time we're talking about Klima Dell on this channel but they've actually been doing a lot of work. So they actually have 1% contribution to the whole carbon credits ecosystem. And I really think that's going to grow because yet again the transparency offered by this is just phenomenal. Yeah. They are also being established in 2021. So they have a little bit of time to grow but they're really hitting this really huge explosive growth phase basically Klima protocol 2.0. They basically looked at the original tokenization. They looked at the original model and said hey we can do better. And we can just completely solve all these problems that's going on with what's happening. So that's why we're spending a little bit of time in this video to look at Klima protocol 2.0. It is a huge I feel like it's one of those huge rebranding points and one of the points where we do as a channel want to make sure that this is very well explained in many ways because yet again humanity's on the line here. We've got to support humanity otherwise you know we won't have a tomorrow. It's between this and AI. The two fronts that we're fighting. Humanity's two biggest battles. Climate change and AI. So essentially what they're doing is they're doing a whole repackaging a new token system and this new token system is going to be a fair launch. This means that people who are part of the original ecosystem they can stake and earn a huge APR for this new token and new people like us if you haven't been into the system we can really just contribute and just dive right in. There's just two angles and I kind of want to explain a little bit of that. So one angle is from people who are already there. And for those it's kind of easy. Stake and win. For us new people we just kind of want to discover okay what is this whole ecosystem about and why does this tokenization system make sense. So overall why are we interested in Klima DAO in the first place and why are we just spending a lot of time and seriousness in discussing this is because of their impact. In terms of impact right now they actually contain 1% of the TVL of the entire carbon market ecosystem. That's actually quite a lot considering that every big company every big corporation they're all looking to look into carbon credits and taking up 1% is actually a huge share especially for a project that has a 6 million dollar market cap at its current point. That's just not bad not bad for crypto a big win for crypto. Regardless they are doing a whole new token package to do a new tokenization system which makes a lot of sense but this rewards a lot of the original holders. So yet again if you're an original holder hodling and staking it you really need to look into it because you need to get in early but anyways we'll talk about this tokenization system coming in. So the big change that's coming in tokenization 2.0 is that there are going to be 2 tokens. So one called Klima and one called Klima X. In short it's kind of like the in my own words it's like the carbon credits tokens. It's essentially representing carbon. For them they say it's a carbon index token and it reflects how much carbon holdings are in this ecosystem. So essentially right now they're issuing 20 million tokens which represents their supply of 20 million carbon credits in the treasury. So it's kind of like matching that. So these are carbon credits and yet again it can make sense because now it removes the clutter because before it could represent the Dow, it could represent tokens. Now anyone who wants to trade carbon they can just go straight for carbon credits. They can go straight for the Klima token. Klima X however represents their economic governance token. So they kind of split the carbon credits with the governance. So that's what Klima X is. Yeah it's a better structure. Yeah. Cleaner. And the good thing is that right now if you are an original holder of the Klima token you get both. So a total of 17 million Klima tokens are going to go into the reward pool for the kind of the free farm. And then 40 million Klima X tokens are going to be there for everyone else for the Dow. Okay so that's for the decentralized governance. And this clarifies a lot because this actually gives more token incentives because everyone understands that basically the Dow token that's going to be a limited finance supply. This has nothing to do with how much carbon credits they're holding in the treasury blah blah blah. While Klima token will represent the carbon credits. So that would be better for kind of an industry to trade. And the other one is for governance and the community holders. I understand it now. Yeah. That makes a little bit more sense. So now the two token systems out they're doing a fair launch for everyone which is why we're talking about everything now. So essentially if you have the current Klima tokens you can stake to get the new 2.0 protocol tokens. And yet again like we said before there's two represent carbon credits. So you're actually going to be getting carbon. You're going to get carbon credits if you stake this. And it makes sense. You're part of the ecosystem. You're part of the treasury. So if you stake it obviously involves a little bit of locking. But if you do stake it you will gain the new tokens and you'll gain it with multipliers if you do it early. So they're kind of encouraging everyone to do it early. Which is also why we're releasing the video now because the multipliers are quite high. Hey this actually looks very familiar. This looks like an airdrop. Yeah exactly like that. It's a green airdrop. They're using the crypto native tools to do everything here. So yet again early start means early rewards. Alright that's kind of what the case. Now let's fit everything in the long term. So we discussed tokenization and in essence I think it's a huge change. Like in summary of the tokenization it's a huge change. Two token structure. They changed how like it was kind of like an inflationary structure. They changed the whole structure now. So it's actually much more rewarding for the Klima X holders. Because your DAO token it's no longer going to be a constant inflation and value is going to drop. They can kind of fix that and say hey you know what. Let's detach both carbon credits on this side, DAO on this side. Alright people can trade. And it gives much more incentive to trade. Yeah. One's for trading, one's for governance. Yeah, one's for governance. So in terms of trading they actually have something really strong right now. So they spent the last four years building really really well. Which is yet again why it's worth talking about. Because they actually built a whole ecosystem to trade and that's called CarbonMark. So in terms of what they're doing it's all about getting different partners to be part of this. So they have around the world more than 100 partners all contributing. Basically presenting their projects on how they're going to capture carbon. Oh yeah I saw this in Dune Protocol. So I think one of the partners is Ascendbit. So they are in partnership with CarbonMark and together they have an API in production that actually offers carbon retirement services to like I think millions of users. And in March there's about 7,296 retirement transactions across 6,630 beneficiaries. And these are micro retirements but I think it's very very bullish because this API can scale over time. Right. So it actually makes sense. And this actually opens a lot of transparency because at the end of the day I feel like this is where it's not just about now. I feel people feel like planting trees are good right now. They're great. But the problem is of course you need to see how much carbon is trapping because at the end of the day when we see the world becoming hotter and hotter and hotter and hotter we're going to be like yo let's cool this place down. Yeah it's getting on here already. It's fast. Yeah. So in many ways being able to track how much the cost of everything is and what method we're doing it makes a lot of transparent sense. And it opens up a lot of doors in terms of really delivering value and putting actions to people's words. I think that's the best way to describe it there. So they actually have this. They have a lot of partners already part of this and an open system for trade already. So this will be a big part. Carbon Mark will be a big part of the Klima Protocol 2.0. And yet again this is where tokenization can come in and we can be a participating in new projects and of course trapping carbon. Lastly it's the roadmap. So in terms of where we are now. Early they had a white paper which you kind of cover the essence of in this video already. They're already at the phase of their fair drop. And then of course they need to scale this and move to something that's actually quite interesting which they're integrating a KUSD native to the ecosystem as well. So I think this is actually the final piece in terms of what they need because they already have the Klima token which represents kind of carbon. Then Klima X token which represents the DAO. Finally they need something that represents US dollars to complete those trades. So basically allowing the whole ecosystem of trade to go through. And they're using the best part of blockchain to do this. So they're kind of fitting in the automated market making aspect of everything to combine that so that any company or any institution or anyone who wants to be part of the carbon credit ecosystem. They can get access to the KUSD and then immediately have the representation of the USD and start trading those carbon credits. And this is actually the simplest way of doing so because yet again there's the power of blockchain. Right? So back in the day if you want to create a market you need market makers and all this. But here they just throw everything into AOMM. Let blockchain take care of the rest. Yeah. Let Uncle blockchain take care of the rest. Alright? So that's kind of where it actually goes really strong. So actually in terms of the ecosystem, in terms of what they're trying to build, it actually makes a lot of sense. They're basically integrating the power of DeFi into carbon credits. Which is interesting too. They're going to be building Coinbase and base ecosystem integrations in the same quarter. Yeah. And that makes a lot more participants, right? So you don't have to pay those Ethereum gas fees. You can be focused on carbon credits. All in all, summary, why talk about this? Why bother? It's because this actually does make an impact in the world coming into 2030, 2050. The world is going to warm up and that's because of the carbon buildup in the atmosphere. So by trapping that, by having carbon credits, we will directly reduce that and ensure humanity's survival. I know it sounds really great, but yes, it is humanity's survival at stake here. Which is why this is actually not only an important matter, but also a financially profitable matter as well. And a lot of the world's trade is going to be based on this. And by providing a framework for that trade, I think this is one of the best applications of blockchain technology. TLDR, if you're not involved in the system, do pay attention. Take out what's happening. The Klima token is the key, the current edition, basically staking that allows you to unlock and get into 2.0. And 2.0 has much cleaner economics for this mass adoption into the ecosystem. No pun intended. No pun intended. So guys, thank you so much for watching this video. I know it's a long one, but it is a very important matter. So I feel like this is our, it's kind of like a donate to the world, you know, plant trees, but instead of planting trees, let's build an ecosystem so we know who's planting trees and who's actually doing good work. And with that guys, thank you guys so much for watching. See you next one. Round and out! Peace!