KIP-64: Expanding $CHAR

Summary This proposal aims to expand KlimaDAO's footprint in the Voluntary Carbon Market by increasing the supply of $CHAR tokens through strategic partnerships and market operations. We propose to be a liquidity partner with Toucan to introduce $CHAR to the Base ecosystem, facilitating liquidity and enhancing market accessibility. Additionally, KlimaDAO seeks to enter into a forward purchase agreement with Exomad Green, the project developer of Concepcion 1, already whitelisted for deposit to $CHAR, to secure additional supply.

Motivation The Voluntary Carbon Market is experiencing unprecedented demand, with significant implications for carbon pricing and availability. KlimaDAO must seize this opportunity to strengthen its position and influence within this rapidly evolving space. By partnering with Toucan, KlimaDAO will leverage Toucan's robust curation abilities and market presence to enhance the liquidity and availability of biochar via $CHAR liquidity. This will not only augment KlimaDAO's market operations but also accelerate the tokenization of environmental commodities.

Furthermore, entering a forward purchase agreement with Exomad aligns with KlimaDAO's strategic goal to secure long-term, cost-effective carbon credits. Exomad’s Concepcion-1 project is a proven and reliable source of high-quality biochar supply. By securing a supply of 2500 CORCs at a competitive rate, KlimaDAO will improve its market positioning, guarantee supply chain integrity, and support sustainable project development in critical regions.

Proposal Liquidity Partner with Toucan:

Expand $CHAR to Base. Enhance liquidity and market exposure. KlimaDAO will work with Toucan to secure and create a liquid market on Base for at least 250 $CHAR, ideally 500 $CHAR, to be paired with $KLIMA. $CHAR will be sourced at a market rate of $160 per $CHAR Minimum cost: $40,000 ; Maximum cost: $80,000 Forward Purchase Agreement with Exomad:

Secure a predictable and cost-effective supply of CORCs from the Concepcion-1 project. Enter into a forward purchase agreement to buy 2500 CORCs at $140 per tonne. This agreement will not only provide price certainty and supply security but also demonstrates KlimaDAO’s commitment to supporting impactful carbon removal projects, while expanding the network of projects in the $KLIMA ecosystem. Cost: $350,000 Delivery: September 30th, 2024 Conclusion The expansion of $CHAR and the strategic acquisition of CORCs through these actions will position KlimaDAO as a proactive player in the carbon market. It will enhance our capability to meet growing demand, make markets, and support global decarbonization efforts effectively.

Polling Period The polling period begins now and ends on Thursday April 25th.

Expand $CHAR on Base and enter into forward offtake agreement?