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Writer's pictureKlimaDAO

Community Newsletter February 2022


Image with a white KlimaDAO logo

The DAO’s redesigned website lays the groundwork for major integrations. Additional upgrades coming soon include the Mobilum-powered fiat onboarding widget, the Klima Infinity dashboard, and our innovative carbon credit retirement function. These additional features will be book-ended with comprehensive educational resources to help both new and existing Klimates deepen their KlimaDAO experience.


Klima Infinity was launched with five partners. The integrations with these first partners will be phased in over the coming weeks while onboarding further Klima Infinity users on a rolling basis. Klima Infinity has attracted positive attention in traditional carbon market circles by offering transparent, permissionless, and real-time carbon footprint offsetting. The service resonates with those frustrated with the inefficiencies of the legacy market.


A broad effort was undertaken to develop KlimaDAO’s branding and communications practices. Several contributors have professional experience in these fields and have produced beautiful and insightful work. Our Partnerships Team is busy pitching Klima Infinity as well as establishing working groups with interested parties to develop these relationships. The following is a brief overview of recent partnerships:

  • Eco is innovating on the concept of banking and building communities through incentives.

  • Mobilum makes it easy to convert fiat to KLIMA on our website.

  • Offsetra assists with the calculation of Klima Infinity users’ footprints.

  • Digital Charity Art is developing the charitable climate-conscious NFT space, with NFTs backed by KLIMA.

  • Dovu provides on-chain carbon offsetting through credits derived from European soil sequestration, while offsetting its own footprint through KlimaDAO to build a collaborative relationship.

  • Thought for Food is a global sustainable agriculture organization with a robust network of climate-conscious individuals.They will be offsetting via Klima Infinity.

  • ETC group manages digital asset exchange traded funds in Europe, including a carbon-neutral Bitcoin fund, and plans to utilize KLIMA for carbon offsetting.


Chart showing the growth and value of the digital carbon ecosystem

February 2022 ended with KlimaDAO having more than 16 million carbon tokens (US$64 million) in its treasury, which surpasses Kenya and Ghana’s 2020 carbon emissions. Although this is a huge feat compared to the 15 million tonnes stored in January, the growth of ReFi has been slower than expected. KIP-14 was voted on by the community so that KLIMA supply inflation can be optimally adjusted to match the current growth of ReFi and allow the ecosystem time to expand without stressing the protocol.


Chart showing the ratio between KlimaDAO's treasury and market capitalization

While the KlimaDAO treasury continues to attract capital in the form of carbon tokens (as shown in the rise to 16 million discussed above), and the Treasury Market Value (TMV) stands at about US$92 million, the current bearish market values all KLIMA in circulation at US$67 million, giving a TMV/Market Cap ratio of 137.85%.



Chart showing the amount of carbon custodied per KLIMA token

Although carbon custodied per KLIMA has stagnated throughout February mainly due to premium reduction from bond recycling, index-adjusted CC/KLIMA increased gradually.


The Klimates voted on several KIPs (numbers 10 through 14) in February. With rapid development but declining token value the DAO required more funding, a request which passed in KIP-10. TCO2 conversion to allow for repurposing BCT to NCT (KIP-11) passed but this was a moot point as the rebalancing had already occurred. In KIP-12 the DAO published a well-defined plan for defending the value of KLIMA by utilizing inverse bonds.


With the DAO moving toward a liquidity management model centered around KLIMA:USDC and carbon tokens paired with KLIMA, KIP-13 approved the liquidation of 25% of the BCT:USDC pool. Finally, KIP-14 reduced the APY to about 1000% in order to slow down protocol inflation while the broader ReFi space launches additional protocols and increases demand for on-chain tokenized carbon.


While market challenges abound, the DAO contributor team has continued to execute passionately on our mission to fight climate change. Many people have been alarmed by the latest IPCC report, which underlines just how urgent the climate challenge is. Every little bit helps and we continue to be empowered to build a more efficient carbon market, helping drive value to those who are working hard to create a greener, more sustainable planet.




Disclaimer: The information provided in this blog post pertaining to KlimaDAO (“KlimaDAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this blog post should not be relied upon as advice to buy or sell or hold such securities or as an offer to sell such securities. This blog post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. KlimaDAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and KlimaDAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. KlimaDAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this blog post supersedes any prior blog post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither KlimaDAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this blog post by you or any of your representatives or for omissions from the information in this blog post. Additionally, KlimaDAO undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this blog post.

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