A No-Bullshit Rewards: CarbonABLE’s reality-backed resale value.
At CarbonABLE there are no smoke and mirrors about where the value comes from: it comes from real decarbonization projects and creates real rewards.
Real Projects = Real Value Transparency
Bringing the power of DeFi to the real world: our NFT holders can help fight climate change while collecting a daily value.
How? Our NFT’s resale value comes from the market value of voluntary carbon credits (VCCs) traded on the voluntary carbon market (VCM). That’s a real yield tied to a real decarbonization project, helping solve a real problem: climate change.
Carbon Credit Value in Real Time
Nature-based projects that produce carbon credits span for a fixed number of years. Each year, the project should avoid emitting, or remove entirely, a fixed amount of carbon dioxide from the atmosphere, “earning,” its carbon credits (1 metric ton = 1 carbon credit).
CarbonABLE then trades the carbon credits on the voluntary carbon market, producing the value for our holders. Holders can watch their financial daily resale value on the CarbonABLE website and decide at any time to cash out in stable coins.
Our method uses three pillars to ensure a high and transparent value for our NFT holders: ex-ante financing, a frozen price in a booming market, and premium carbon credits.
Pillar 1: “Ex-Ante” Financing
Projects that seek financing by selling carbon credits go through a certification process with an agency. A few of the market leaders for certification are Gold Standard, Verra, and Natural Capital Partners. Others like Wildsense are also bringing a fresher approach to certification.
At CarbonABLE, we finance “ex-ante” projects, meaning projects ready for this certification process but not certified yet. This is the reason why we can get below-the-market prices for the inherent carbon credits. To avoid the risk of certification failure, our partners qualify star projects with a high chance of success by performing in-depth due diligence.
Pillar 2: Buying at a Frozen Price and Selling in a Booming Market
Funders, governments, and institutions all agree that the nature-based carbon credit market is on its way up. According to a Verra report in 2021, more than two-thirds of carbon credits issued in the first four months of 2021 were nature-based solutions — doubling since 2016. A Sylvera report released in 2022 details a future supply crunch for carbon credits¹.
When CarbonABLE finances a carbon credit project, we purchase the entirety of the carbon credits that will be available for the project’s lifespan, at a frozen price. By selling them later, on a booming market, their price will be much higher, thus generating profits and value.
Enjoying math ? Here is an example (if you hate maths, keep going)- Our NFT holders finance a project, for example, a forest regeneration project : CarbonABLE transfers the money to the project holder to start his project. - In return, CarbonABLE we will get all the carbon credits generated by the project, all purchased at once, let's say at a frozen price of $10/metric ton of CO2.- Experts certifies that the project can issue 10,000 carbon credits per year for thirty years- Let's take an hypothesis that in ten years, the market price for carbon credits is $40/metric ton.- In year 10, CarbonABLE will be able to sell the 10,000 carbon credits of the year.
. CarbonABLE sells them for 10,000*40$= 400,000$
. CarbonABLE has bought them for : 10,000*10$= 100,000$
. CarbonABLE makes a profit of : 400,000-100,000= 300,000$
This profit is then divided between all the NFT holders for this project and distributed as a financial value. And 300,000$ is just for that single project's annual emissions! This project lasts for 30 years!
To maximize the profits and therefore the value for our NFT holders, CarbonABLE internalizes the carbon credits trading expertise by hiring the best team of specialized traders and financial risk managers.
Pillar 3: Premium Carbon Credits
CarbonABLE’s method means our Premium credits are the most transparent and traceable on the market — any time of day it’s possible to check how each project is doing, through satellite images and cutting-edge technology. And by using blockchain technology for our NFTs, anyone has access to a massive amount of metadata for every detail of each project’s management.
Reality-Backed Resale Value > Bullshit Value
There are many weaknesses to carbon credits on the market today, and CarbonABLE has a strategy to avoid each of them. It is in our blood to minimize risk and follow a strict monitoring protocol (that is accessible to holders, of course!). We retire any carbon credits that are no longer usable. For example, in case part of the carbon sink is damaged. This means the fate of your NFT is linked to the real carbon sink. We don’t cheat with carbon.
One Reward is not Enough?
Two rewards are better than one! Each day, it’s possible to see how the bit of carbon sink that your NFT represents is doing and withdraw the value in stable coin. But stacking your NFT also offers holders our carbonABLE token, known as CARBZ. Collecting CARBZ gives holders the right to participate in management decisions, and also some cool extras: yield boosts, airdrops, and early access to new NFT releases.
Critics of NFTs and crypto are going to eat their words when they see how the CarbonABLE method delivers a real market value and restores nature. That’s the heart of a no-bullshit rewards.
Sources:
(1) Sylvera, Carbon Credit Crunch Report, 2022, https://www.sylvera.com/resources