The Toucan Protocol
A high level overview of the Toucan Protocol

Protocol Summary

Below is a diagram of the overarching design of the Toucan Protocol. It shouldn't be thought of as a technical diagram, but more of as a way to get a sense of the different parts of the Toucan Protocol and how they interact.
The bottom of the diagram depicts off-chain registries maintained by standards bodies like Verra, who issue carbon offsets when projects can show they've engaged in activity that meets their standard.
The Carbon Bridge provides an on-ramp for carbon offsets from these source registries onto the Toucan "meta-registry" running on Polygon, an EVM-compatible blockchain running on an energy-efficient Proof of Stake consensus mechanism.
Once bridged, tokenized carbon offsets (called TCO2 tokens) can be deposited in a Carbon Pool. These carbon reference pools only accept offsets that contain an attribute set, meaning every offset in the pool has a shared set of gating attributes. By depositing TCO2 tokens into a pool, users receive carbon reference tokens, a fungible pool token that is backed by one offset held in the smart contract.
Our first Carbon Pool, designed with our launch partner KlimaDAO, is the Base Carbon Tonne, or BCT. We will be designing and creating carbon reference pools with other attribute sets in the coming months.
By aggregating carbon offsets in the Carbon Pool smart contracts, the Toucan Protocol enables the creation of liquid carbon tokens like BCT. As fungible ERC20 tokens, these carbon reference tokens can easily be integrated all over the evolving world of DeFi.

Conceptual Architecture

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Last modified 8d ago