CarbonCore Economics
Understanding the economic model of the CarbonCore platform and how it creates value for all participants.
Document Flow
How information and value move through the CarbonCore ecosystem.
Territory Registration
Landowners submit territory details, including location, boundaries, and characteristics. The data is stored both on the blockchain (basic information) and in the PostgreSQL database (detailed information) with PostGIS extension for geographical data.
At this stage, the territory receives a unique ID and is assigned a "Pending" status.
Expert Verification
Experts with the EXPERT_ROLE claim territories for verification on a first-come-first-served basis. They examine the territory details, potentially request additional information, and validate key metrics such as area, oxygen production, and CO₂ absorption.
The expert submits a verification report with their assessment and recommendations, which changes the territory status to "ExpertVerified" if approved.
VVB Verification
Authorized VVB entities with the VVB_ROLE review the expert verification and provide final approval. They set a validity period for the verification (default: 1 year) and may add additional notes or requirements.
Upon VVB approval, the territory status changes to "VVBVerified" and becomes eligible for token generation.
Token Generation
The system automatically creates a territory-specific ERC-20 token contract through the TerritoryTokenFactory. Tokens are named according to the pattern CC{TerritoryID}{Year} for clear identification.
Token minting occurs daily at UTC midnight based on the verified CO₂ absorption rate. Tokens are sent directly to the landowner's wallet and can be held, traded, or retired.
Actor Roles in the Ecosystem
Understanding the different participants and their economic incentives.
Landowners
Responsibilities: Register territories, maintain land quality, provide documentation
Benefits: Receive carbon tokens daily, new revenue stream from previously unused or underutilized land
Verification Experts
Responsibilities: Verify territory details, assess carbon metrics, submit reports
Benefits: Earn fees for each verification, build reputation in the ecosystem
VVB Entities
Responsibilities: Provide final verification, set validity periods, ensure compliance
Benefits: Facilitate carbon reduction, meet climate goals, generate tax revenue
Carbon Credit Buyers
Responsibilities: Purchase and retire tokens to offset emissions
Benefits: Meet ESG requirements, offset carbon footprint, transparent verification of offsets
Token Economics
How carbon tokens derive value and support the ecosystem.
Token Generation Model
Formula: Daily tokens = (CO₂ absorption per year) ÷ 365
Each token represents 1 ton of CO₂ absorbed by the verified territory.
Tokens are minted daily at UTC midnight and sent directly to the landowner's wallet.
Token Value Determinants
-
Territory Quality
Pristine forests and high-biodiversity areas may command premium prices
-
Verification Strictness
Territories with more thorough verification generally have higher token values
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Location Value
Territories in regions with high biodiversity or cultural significance
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Social Impact
Territories supporting indigenous communities or social projects
Platform Fee Structure
| Fee Type | Amount | Recipient |
|---|---|---|
| Territory Registration | Onboarding Fee + Annual Support Fee | Platform |
| Expert Verification | Fixed fee + % of territory area | Expert (90%), Platform (10%) |
| VVB Verification | Fixed fee based on territory size | VVB Entity |
| Token Issuance | Included in your territory support fee | N/A |
| Transaction Fee | Ethereum network fee | Network |
| Token Retirement | 0.5% of token value + transaction fee | Platform |
Market Dynamics
Carbon tokens within the CarbonCore ecosystem function in a dynamic market with several key features:
- Price Discovery: Token prices are determined by market demand and territory-specific quality factors.
- Direct Trading: Landowners can sell directly to buyers without intermediaries, increasing market efficiency.
- Secondary Market: Tokens can be traded between buyers before retirement.
- Differentiated Pricing: Unlike traditional carbon credits that often have uniform pricing, CarbonCore tokens have differentiated prices based on territory characteristics.
- Transparency: All transactions are recorded on the blockchain, creating a transparent and auditable market.
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