Solid World DAO will be a carbon credit pre-financing marketplace.
Solid World DAO, which funds new carbon initiatives to fight the climate crisis, is seeking projects in Brazil, such as those that focus on the Amazon and other biomes in the country. projects before certification. For this, there will be a pre-sale of part of the project’s carbon credits. The plan is to buy around half a million credits globally in the first year.
Jeff Prestes, one of Brazil’s best-known blockchain architects, is Chief Technology Officer (CTO) at Solid, which is based in Estonia. In the second half of 2022, DAO predicts that carbon credits will enter its marketplace, where there will be pre-sales and then, they will become the Solid Carbon Tonne (SCT) token. Whoever invests in the projects, takes income from fees that the protocol collects.
DAO allows you to automatically collect value across the entire ecosystem of pre-purchased tokens. The charging of fees can happen, for example, in the tokenization of pre-purchased credits, in the purchase of a project from the token pool or in any negotiation. The protocol will also buy credits and sell them after receiving certification.
According to Stenver Jerkku, president and founder of Solid World, the potential to buy credits is in the billions by 2030. Jerkku was one of the developers of the first Estonian space satellite and is founder and blockchain director at eAgronom.
Solid World DAO wants to solve important bottleneck: money
With the platform, Solid World wants to accelerate a process that can get stall carbon credit projects. That’s because it can take a long time for certification and funding. Thus, the project owners need to pay for the development. “This creates a really huge barrier to entry, especially considering the owners are some of the most conservative people out there. Let’s remove that barrier and make it not only possible, but simple, to get paid in advance!
To use the platform, projects need to apply to the internationally recognized Verra or Gold Standard certification programs. In this process, it will be necessary to prove and adapt to the credit model that will be generated. In addition, they must go through Solid World’s “Know Your Customer” (KYC). If everything is correct, the agreement is signed.
“The program needs to generate certified credits in five years and follow the quality and methodology standards that they indicated in their application process. Some methodologies, whose quality is considered low, will not be accepted”, completes Stenver. In addition, DAO intends to partner with producers, certifiers and other companies that are also working on the tokenization of carbon credits.
At the Solid World DAO Discord there is project information.