TLDR – What the Proposal is Asking of Sushi
KlimaDAO wants Sushi to add a carbon offsetting service to the DEX so that users have the ability to choose to buy a carbon offset for each trade on Polygon. This would, in effect, allow the user to make carbon neutral trades on Sushi-Polygon.
Background – What is KlimaDAO?
KlimaDAO is a protocol in the carbon offset ecosystem. It provides methods for everyday crypto-users to participate in a DAO with a focus on carbon emission offsets. Users can interact with the protocol in several ways:
· Hold Klima and participate in governance
· Hold sKlima which is the staked version of Klima, earning rewards and allowing governance participation
· Buy Klima via a bonding mechanism to receive it at discounted prices with a mandatory vesting period
· Offsetting – KlimaDAO allows users to ‘retire’ carbon offset tokens such as BCT, which is more or less equivalent to burning the token, meaning its value is lost and the carbon is more truly offset than when it is still circulating with a trade value.
What Has KlimaDAO Accomplished?
KlimaDAO has managed to offset more than 150k tonnes of carbon emissions since its launch. At the current price of BCT this equates to roughly $301k USD. While this number appears small, KlimaDAO is operating primarily on Polygon which has only been responsible for approximately 90k tonnes of carbon emissions since inception in Oct 2017. Taking this into account, KlimaDAO has offset more than 1.5 times the emissions of the entire Polygon chain!
As well as this, KlimaDAO indicates they have moved over 18M tonnes of carbon on-chain. This is likely in the form of active, non-retired carbon offset tokens that still have trade value and are held either in their treasury or are part of their active liquidity pools.
What is a Carbon Offset Token?
Carbon offset tokens are similar to carbon offset credits in meat-space. Toucan Protocol is the most familiar carbon offset protocol with the BCT (Base Carbon Tonne) token. Toucan Protocol strives to meet the demand of blockchain users for these tokenized credits. Their token can be retired. This token plays an integral role in KlimaDAO’s own protocol, among other tokens with similar goals. KlimaDAO, with its intention to become community governed, will optimistically look for the best solutions to meet the carbon offset demands of its user base.
Is Carbon Offsetting Really Good Environmental Practice?
This is a topic that is open to debate. There are critics of this method who state it simply allows major carbon emitters to use their capital gains to obscure their environmental footprint.It is worth noting that despite this critique, it does still result in positive protection by removing some resources from the table that could be used to add to carbon emissions. On its own, carbon offsetting will not offer salvation for this pale blue dot, but it may be a step in the right direction. It is wise to do your own research on the subject, and if protecting the planet is your focus it may be a worthwhile tool in your arsenal. Only you can prevent forest fires, or something... Go Sushi!
The snapshot is live at: https://snapshot.org/#/sushigov.eth/proposal/QmTv4DARwft9sjaiBKpmqJj81YaBBGM5ejK995KrceJekH