10. CarbonStack

What is CarbonStack?

A decentralised marketplace for Environmental based NFT’s and ERC-20 DEX. The decentralised marketplace whilst traditional in its operation will offer a unique fee model which ensures funds go back to the originators of environmental benefit (eg the project developers who originated the carbon credits). The DEX will allow for ERC-20 to ERC-20 swaps in addition to the creation of unique ERC-1155 to ERC-20 swaps. Ultimately CarbonStack acts a pricing oracle for CO2Fi, synergising the two platforms will improve the on-chain ecosystem for environmental assets.

What are the fee’s for selling on CarbonStack marketplace?

CarbonStack charges buyers and sellers 2.5% of each transaction so 5% in total. The fee sellers are charged goes to maintaining the CarbonStack platform, excess revenue is distributed to HCO2 holders once locking becomes available (in the first two years this will go towards building the CO2Fi war chest).

On the buyside the 2.5% fee will be sent directly to project developers who issued the credits underlying the NFT.

Why charge buyers this 2.5% fee?

The buyers fee ensures that a portion of the proceeds of any NFT sale goes back towards the original project developer. The reason for implementing is due to the disconnect between many environmental NFT’s and the project developers who actually put in the work to get the carbon issued in the first place. In many cases project developers may be stuck in very unfavourable contracts with brokers who provided the initial project investment, thereby forced to sell their credits at far below their current market value. The fixed low prices for their credits whilst providing the project developers with stability, does not provide them with enough capital to expand their operations thereby hamstringing further environmental protection.

In other cases, we have seen greedy VC firms capitalise on the increase in carbon price and the euphoria of NFT’s to go ahead and mint their own NFT’s without the knowledge or consent of the project developers. In their glitzy marketing material and flashy websites they outline the benefits of the project they are tokenising, however they do nothing to ensure any funds go back to the project developer. In most cases they would have just bought the credits from a carbon broker. This in of and of itself is not illegal, however blockchain and smart contracts offer us the chance to do things better, the bear minimum a tokenised project can do is ensure a portion of fees or token appreciation go back to the project developer from any transaction, so that they have more to invest in the important job of environmental protection.

How will CarbonStack ensure that project developers receive the 2.5% fee?

CarbonStack will work with the major carbon registries in order to communicate with project developers and alert them to their untapped funds and how to access them. Project developers will be identified and contacted once the associated fees from the selling of their project reaches USD $1000. Those which cannot be identified will have their funds directed to DAO PD (TBA).

How will the CarbonStack DEX operate

The DEX for ERC-20 tokens will operate within the confines of a Uni-swap V3 fork. The innovative ERC-20 to ERC-1155 DEX will allow (supported) large ERC-1155 collections to be swapped seamlessly with ERC-20 tokens, this will act as a far more accurate pricing oracle than the CarbonStack marketplace, which is open to possible market manipulation. In addition, seamless transactions of ERC-1155 to ERC-20’s will simplify any liquidation events involving ERC-1155’s of a supported collection.

The future of CarbonStack

As the market for environmental NFT’s matures, we hope to integrate a Curve style meta and base pool system, to allow for a wider range of supported ERC-1155’s in the ERC-20 to ERC-1155 DEX.