Note: The resource above offers an in-depth explanation on the information summarized below.
Welcome to our workshop on integrating programmable carbon with Toucan. In this workshop, we’ll be joined by Alex, a Developer Advocate at Toucan, who will walk us through the process and answer any questions we may have.
Firstly, it’s important to understand the context. The issue of excessive carbon dioxide (CO2) in the atmosphere is a significant one. To combat this, voluntary carbon markets have been established. In these markets, entities known as project developers take actions to reduce or avoid emitting CO2. These actions could involve planting trees or using solar panels for energy.
Once these actions are verified by institutions (such as Vera), the project developers receive a carbon certificate, offset, or credit. These can be traded or speculated on, making for a complex financial market around carbon. To truly offset the CO2 emissions, these credits need to be retired (i.e., destroyed).
Toucan aims to take these carbon markets onto the blockchain to address issues of opaqueness and inefficiency. This is done via their first product - the Tokenizer (also known as the Carbon Bridge). This system takes carbon credits from the off-chain world, verifies them, and creates an NFT based on them. These NFTs are then fractionalized into ERC-20 tokens called dCO2s, each of which is equivalent to one ton of CO2.
Each dCO2 comes with metadata detailing specifics of the carbon offset project. They can be traded, sold, or retired to achieve the CO2 offset.
The next product by Toucan is Pools. These are baskets or indexed funds of dCO2s that meet specific criteria. They allow for easier trading and increased liquidity of the dCO2s.
The pool tokens (NCT and VCT) are ERC-20 tokens. You can deposit your dCO2s into these pools, where they are locked up, and you receive pool tokens. Alternatively, if you have pool tokens, you can redeem them for underlying dCO2s. There are two ways to redeem: automatically (which has no fees) or selectively (which comes with fees and allows you to choose the specific dCO2s you receive).
With this understanding, you can now start building. Here are a few examples of what you can build:
- Carbon-backed stable coins: You can back stable coins with NCT and VCT.
- Staking DApps: These applications can be built using Defi technology.
- Carbon sequestering NFTs: This involves creating NFTs that hold carbon in the form of NCT and BCT.
- Play-to-Earn games that sequester CO2: Create a game where growing a virtual tree, for example, captures more NCT or BCT.
We encourage you to start building and reach out for support if you need it. For further information, visit our documentation at Toucan Docs. For specific development queries, check the developer-focused section at the bottom of the page or visit Developer Toucan for further assistance and resources. We offer technical support, co-marketing, and even grants for promising projects.
For any questions, feel free to ask in the comment section or reach out to us on Discord.