What is Toucan Protocol? Infrastructure for the Carbon Credit market
Introduce
Fighting climate change, especially global warming, is a matter of survival for the Earth and the survival of each of us. This problem becomes even more urgent in the era of industrialization and modernization, when greenhouse gas emissions are increasing.
According to estimates by the EU Copernicus Climate Change Service (CCCS), the Earth in 2023 will increase by 1.48 degrees Celsius compared to pre-industrial times. At the 2015 Paris Agreement, nearly 200 countries set a goal of keeping the global Medium temperature increase to no more than 2.0 degrees Celsius and ideally to only 1.5 degrees Celsius. To achieve the goal This target requires a 50% reduction in global greenhouse gas emissions from current levels by 2030 and net zero by 2050.
Global Medium temperature. Source: Berkeleyearth
For some industries, reducing greenhouse gas emissions requires major changes in costly technological infrastructure, so in addition to improving methods, purchasing carbon credits to compensate is a common way to solve this problem.
Along with the general development of the Real World Asset Shard , ideas about Token carbon certificates are being promoted into practice more and more rapidly. Leveraging the power of blockchain and the crypto economy, tokenized carbon credit in particular and decentralized climate finance will be a completely new way to help protect nature and the living environment.
In the article below we will learn about one of the leading projects in carbon credit Token called Toucan Protocol.
Products & Operating Model
What is Toucan Protocol?
Toucan Protocol is the infrastructure for the carbon credit market on the blockchain network. Toucan started with carbon credit as its spearhead, but the project's vision is much broader. Toucan wants to create a decentralized financial ecosystem for Earth protection activities.
Toucan's solution
Toucan's solution suite includes 3 main components: Carbon Bridge, Carbon Pool and Carbon Retirement.
Carbon Bridge
Through Toucan Carbon Bridge, carbon certificates will be brought from real life to on-chain, this activity is also known as tokenization.
Carbon Credit is an intangible asset, it is a certificate issued and tracked by competent authorities. The Toucan Carbon Bridge connects this real-life tracking system with the Toucan Smart Contract, and so when carbon credits are created or used, they are automatically offset on the blockchain network and vice versa.
Toucan's carbon credit bridge process
Token of carbon certificates helps it achieve many benefits when compared to traditional carbon credits:
Enhance transparency;
Ability to Chia small volumes;
Flexible buying/selling without limits on time and geography, thereby improving liquidation;
Synchronize standards between issuing organizations.
Currently, Toucan supports bridges with carbon certificates from two organizations: Puro and Gold Standard.
Carbon Pool
A major barrier in the traditional voluntary carbon credit market (VCM) is liquidation. It is difficult for buyers and sellers to meet, and many different types of certifications create demand Shard .
Based on the principles of the DeFi market, Toucan designs a common Liquidity Pool system for each group of carbon certificates with the same attribute, thereby enhancing liquidation and transaction efficiency. With Carbon Pool, organizations and individuals in need can buy/sell carbon credits at any time and any time.
Toucan's Carbon Pool operating model
TCO2 is a Token that represents carbon certificates of projects after the bridge process. These TCO2 Token have unique properties. The next step is for users to have the option to put their TCO2 into a common Liquidity Pool called Carbon Pool (if eligible) to receive liquid carbon pool Token. This liquid Token can be sold on decentralized exchanges quickly.
For individuals and organizations that want to use it, they simply buy liquid Token on exchanges, then go through Carbon Pool to redeem the certificates they need to use.
Liquid Carbon Pool Token helps connect all resources and buyers/sellers together. Thereby promoting liquidation and accelerating Capital flow in the market.
In the past, the traditional carbon credit market was simply a buying/selling activity between environmental protection projects and carbon certification units, with very little speculation and trading activities. Toucan's liquid carbon pool Token will create favorable conditions for trading and lending activities in the future.
Carbon Retirement
This is the final activity in the life cycle of a carbon certificate. Businesses will consume carbon certificates to offset greenhouse gas emissions during operations.
Through Toucan Dashboard, businesses choose to consume certificates, this amount will be permanently burned from the circulation supply, and through a two-way bridge, the numbers will be recorded in real life for businesses and organizations. issuing authority.
Above are all of Toucan's products and operating procedures for carbon certificates from Token to consumption. The Toucan ecosystem is built primarily on the Celo blockchain and has expanded to the Polygon network. In the future, Toucan will continue to expand to other public blockchains towards the vision of multichain carbon market.
Development team
Toucan's development team is introduced as a group of technology developers and experts in the field of carbon globally. But according to the project's Linkedin page, the members, especially the founders, are mainly from Germany.
Toucan Protocol development team
Some prominent members of the project include:
Raphaël Haupt - Co-Founder & CEO: He is a researcher who has extensive experience in both blockchain and carbon markets. Before founding Toucan, he was a member of Deep Science Ventures and Curve Labs.
Anna Morrogh - Co-Founder & COO: She has experience working at Youtube, Google in a marketing lead position. Then experienced other jobs in the same marketing field at crealytics, AllBright, InVision, Multiple Startups before becoming COO of Toucan.
Adam Spiers - Co-Founder & CTO: As a member of Toucan's technology department, he has a rich technical background. His experiences include: systems administrator at Oxford University, linux consultant at Lehman Brothers, software consultant at Novell, software engineer at SUSE, senior software architect at Panther Protocol and then CTO of Toucan.
Investors
Toucan has raised a seed round for an undisclosed amount by Quiet Capital, Eniac Ventures, Obvious Ventures, MCJ Collective, Union Square Ventures, Shine Capital, Draft Ventures and Earthshot Ventures.
Tokenomics
Currently, Toucan has 2 main types of Token
Carbon Credit Token - TCO2: is a Token created after the process of bridging carbon certificates from real life to the blockchain, the amount of TCO2 represents the amount of Token carbon credits.
Carbon Pool Token: Is the liquid Token of TCO2 after the owner deposits into the liquidation pool. With this Carbon Pool Token , users can easily buy, sell and exchange in the DeFi space. Depending on each Carbon Pool, there are different types of Token , such as BCT, NCT, CHAR.
In addition, there is no information about the Token Issuance .
Epilogue
Toucan is one of the leading projects in the field of creating a carbon credit market in the DeFi space. The development team are all experienced in both blockchain and carbon credit fields in the traditional market.
According to Toucan's forecast, the current carbon credit market can only meet a small part of the demand. The growth target of the voluntary carbon market by 2050 is about 100 times higher than today.
Along with the overall development of the RWA Shard and the urgency of environmental protection, carbon credit tokenization will be a puzzle Shard with a lot of development space.
Hope the above article helps you in your research process.
Note: The information in the article is not XEM investment advice, Coin68 is not responsible for any of your investment decisions.
