With KlimaDAO on the way to a sustainable future! =

The crypto market often comes in a bad light because some systems are said to be unsustainable. In the spring of 2021 there was still criticism from Elon Musk, who claimed that mining Bitcoin (BTC) would not be done in a sustainable way. This statement about the Proof-of-Work system was one of the causes of a huge drop in the price of Bitcoin.

However, there are also sustainable initiatives that work with blockchain technology. My colleague Matt recently wrote a blog about the PLASTIKS project, which focuses on reducing plastic pollution. Thanks to the transparency of the blockchain, everyone can see what companies are actually doing to ensure a better planet.

KlimaDAO also focuses on improving the planet. This organization focuses in particular on climate change and encourages investment in sustainable alternatives. In this article you will discover the interesting plans and vision of the company.

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  • View quickly
  • What is KlimaDAO (KLIMA)?
  • KlimaDAO’s view on the problem
  • The KlimaDAO solution
  • KlimaDAO’s token: KLIMA
    • CLIMA Strike
    • Rebasing
  • Suitable wallet for KLIMA
  • Critical note
  • Conclusion

The video below explains how KlimaDAO works. Explaining the project requires a lot of text, which you will discover in this article! This video explanation gives a clear view of this blog.

 

What is KlimaDAO (KLIMA)?

The decentralized project KlimaDAO is a fork of OlympusDAO and uses a similar concept. Both projects got a lot of attention thanks to their high APY. However, in addition to this similarity, both parties have a different goal. KlimaDAO is working to make carbon assets valuable.

A high carbon price forces the economy to take sustainable measures more quickly. In doing so, the project aims to influence climate change. KlimaDAO’s plans should, among other things, ensure that technological developments related to climate change proceed more quickly.

In addition, the project tries to make sustainable initiatives more profitable through their plans. How the project envisions this and how you could benefit from it will be fully covered later in the article.

KlimaDAO has the ambition to become the biggest disruptor of the ‘carbon markets’. The project also wants to provide a new monetary system, which is supported by the transparent carbon measures.

The economic activities in the new monetary system will lead to an acceleration in repairing the damage done by humans to the planet.

KlimaDAO’s view on the problem

The KlimaDAO team monitors the developments surrounding economic growth. Due to increasing prosperity, individual interests are increasing. Economic growth leads to more production and consumption, making it possible for society as a whole to be prosperous.

The project sees the economy as a rational market, in which the market values certain products in a certain way. For example, oxygen and water, important necessities of life, are freely accessible in most places on earth. Other earthly products such as diamonds, on the other hand, are not a primary necessity of life and represent an enormous value that only a few people can afford.

The most apt comparison that KlimaDAO makes is about Amazon. The Amazon company is considered one of the most valuable companies, while the Amazon forest has little market value. Trees are very important for our survival, but people cut them down to create agricultural land and sell the wood.

The financial markets today focus on speculation, rather than physical goods and services. The crypto market is an example of this, where cryptocurrencies without intrinsic value go to the moon.

KlimaDAO wants nothing to do with this speculative trade, but is concerned about how we treat the earth and the climate. They see the effects of carbon dioxide, a greenhouse gas that inhibits the power of our planet.

This affects the natural ecosystems. Permafrost melts, deserts arise in tropical regions and coral reefs disappear. KlimaDAO sees problems with the current markets in these developments, but also opportunities.

courtesy of Pexels.com

The KlimaDAO solution

Climate change is seen by KlimaDAO as the biggest problem of our generation. The only solution is to tackle this problem on a global level. The market is not only a major threat, but also a huge solution to the problem.

Companies and governments can focus on reducing CO2 emissions, but also on capturing the CO2 emissions that do occur. Market forces are the solution to this.

By properly organizing and coordinating the solution, the market itself can solve the problems surrounding greenhouse gases. The consumer also has a contribution to make here, by ensuring a fair price.

You and I as consumers can leave products that are harmful to the environment and look for alternative and sustainable options, which can also be found on the market. This indirectly determines the price of carbon.

KlimaDAO believes that companies that focus positively on greenhouse gases should be rewarded for their efforts. By investing in these companies, or buying their products, you ensure that the right companies can grow.

According to KlimaDAO, this solution can be implemented perfectly with the developments around web3. Sufficient financial resources are available at this location, which ensure a transparent and secure method of transfer via smart contract. This makes good initiatives transparent and can be appreciated.

courtesy of Pexels.com

KlimaDAO’s token: KLIMA

KLIMA is the token of KlimaDAO and is very important for the ecosystem of the project. New KLIMAs can only come onto the market when a Base Carbon Tonne (BCT) is secured to KlimaDAO. You can think of a BCT as the reserves of the project.

A BCT is a type of carbon offset index. The index contains various tokenized carbons. As a result, KlimaDAO is developing a kind of carbon money, which gives carbon a certain value.

An example of tokenized carbons is the TCO2. Each carbon offset achieved in this way is equivalent to 1 ton of CO2 emissions, which are reduced or removed from the atmosphere around the Earth.

This will be done by selected projects that are active all over the world. From projects in Brazil that focus on deforestation, to soil carbon projects in the United States. As a result, each BCT is backed by a carbon credit, which ensures that KlimaDAO’s token, KLIMA, becomes valuable through the price of carbon.

Despite the fact that KlimaDAO is not a fan of speculation on the markets, KLIMA will still have to deal with speculation due to the open market forces. In addition to the sustainable use of the token, the project wants to make the token even more important through the following plans.

CLIMA Strike

By discontinuing KLIMA, the company is trying to encourage investors to hold on to the coin for the long term. In addition to the rewards for striking, the project is also betting on a rising carbon price (i.e. their own product).

For staking KLIMA you will receive sKLIMA, which is equivalent to the normal token. When you decide to unstake your coins, you just receive KLIMA. You can move sKLIMA between wallets, both soft and hardware wallets. sKLIMA will automatically compound itself via rebasing.

Rebasing

The project distributes the KLIMA by these to the investors who are on strike, without asking sKLIMA in return. This results in an increase in KLIMA that is on strike, but also in the outstanding sKLIMA. By rebasing, the project ensures that this difference will be corrected.

In the example below, KlimaDAO explains how this works. And yes, it’s understandable if you have to read this twice.

For example: there are 500k KLIMA staked and 500k sKLIMA outstanding. The project has made a $4,000 profit from demand for carbon (BCT) bonds (at an assumed price of $8 per BCT), which it uses to store and repay 500 KLIMA.

It sends that KLIMA to the strike contract; there are now 500.5k KLIMA on strike and 500k sKLIMA outstanding. The sKLIMA supply must increase by 0.5k, or 0.1%, to return to equilibrium. So the sKLIMA is recalculated by 0.1% to restore equilibrium.

Suitable wallet for KLIMA

In order to store the token in a wallet, you will first have to make sure that you have the token in your possession. The options for buying KLIMA are not very great. You can buy KLIMA directly through the trading platforms SushiSwap and Hotbit.

In addition to leaving the coins on a trading platform, you can also store the coins in a software wallet. You can store KLIMA in both your Trust Wallet and your MetaMask Wallet. You can store the tokens in this software wallet.

In addition to the exchange and software wallet, KLIMA can also be stored on a hardware wallet. This is recommended in most cases, since you own the private key here and therefore actually own the coins. The most famous hardware wallet is currently the Ledger Nano S. You can buy this from the official Dutch reseller Cryptomaan.

In the video below you can find out how to buy KlimaDAO’s token via SushiSwap:

 

Critical note

Initially, it is of course difficult to be critical of a project that focuses on improving the planet. Climate change is perceived as problematic by many organizations and plans and objectives have been in place for many years to combat climate change.

Most people realize how important the planet is for our survival, yet we pollute the planet that we ourselves need in different ways. After all, Elon Musk has not yet built a society on Mars.

However, you can question climate change and the way in which measures are taken. Increasingly, CO2 emissions are seen as something terrible, while the Earth’s ecosystem needs this greenhouse gas.

However, the greenhouse gas is also needed within the ecosystem. After all, trees cannot produce oxygen without CO2. Without oxygen, I don’t have to tell you what will happen to humanity.

Despite all plans to reduce CO2 emissions, there are countries that are not guided by the targets set for combating climate change. For example, China’s CO2 emissions have increased considerably in recent years.

China’s cement industry alone generates a huge amount of emissions. Unfortunately I can’t verify it, but recently I read that this industry has more CO2 emissions than all cars in Europe combined.

KlimaDAO mainly focuses on encouraging good behavior by investing in sustainable projects and making carbon more expensive. However, as a critical note you can say that the project can also put pressure on the polluters by calling them to account on their business operations.

This may even lead to a great collaboration, which is better for the future of KlimaDAO, the companies, the planet and perhaps your bank account if you decide to invest in the project.

Conclusion

KlimaDAO is one of the crypto projects that focuses on improving the planet. The project has developed a special system for this, in which investing is the common thread in the story. Investing in the future of the earth can be done by an investor who buys KLIMA. However, KLIMA is only issued when BCT is secured to the platform.

In addition, KlimaDAO invests in sustainable initiatives that focus on making the earth more beautiful. The BCT is a tokenized index, which consists of investments in various sustainable projects. The ultimate goal of this system is to make carbon more expensive.

You can argue about the way KlimDAO tries to do this, but it shows a vision to solve the problems. The ultimate goal of KlimaDAO is to change the monetary system, where carbon becomes very expensive and market forces will provide sustainable alternatives.

Are you looking for more information or do you have any questions about KlimaDAO? Or would you like to meet other crypto enthusiasts? In the AllesOverCrypto Facebook group you can ask questions and talk to more than 100,000 other crypto enthusiasts.

Do you have other crypto related questions? The easiest way is to look up your question in our FAQ. What you can also do is that you google your question + AllesOverCrypto. Let us know what your thoughts are about the developments surrounding the sustainable alternatives on the crypto market!

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