CHAR carbon pool

The CHAR carbon pool bundles carbon removals from Puro.earth.

The CHAR carbon pool is open market infrastructure for biochar credits.

It allows suppliers to convert their Puro.earth CO2 Removal Certificates (CORCs) into CHAR, which has a liquid market and a transparent price. End-buyers or intermediaries can access the inventory of tokenized credits within the pool at any point in time and with instant settlement.

The project composition and number of credits within the pool is always transparent, and buyers can select exactly which credits they want to redeem from the pool.

Our open infrastructure is designed to bring more liquidity to the biochar market in an effort to scale carbon removal globally.

CHAR contract address on Celo: 0x50E85c754929840B58614F48e29C64BC78C58345

Establishing a liquid biochar market

The CHAR carbon pool offers suppliers a direct pathway to monetize their CORCs. It supports a streamlined process to sell CORCs quickly and easily, with continuous demand and transparent market price signals – available 24/7.

Additionally, the pool underpins liquid markets that allow buyers, brokers, and traders from anywhere in the world to engage in instant buying and selling of biochar assets. In this capacity, it supports a highly accessible secondary market for efficient biochar transactions.

The CHAR carbon pool bundles project-specific TCO2 tokens in exchange for fungible and liquid CHAR tokens.

An allowlist filter criteria

An allowlist of projects determines which TCO2 tokens are permitted to be deposited into the CHAR pool. Toucan and its partners review and update this allowlist regularly.

The allowlist of projects as of April 18, 2024 includes:

• Concepcion 1

• Oregon Biochar Solutions

• American BioCarbon CT, LLC

• BC Biocarbon - McBride

• Carbon Cycle, 001, Rieden, DE

Introduction of pool health adjustment

With the launch of CHAR, we have implemented a dynamic pool health adjustment to encourage pool diversification. This promotes a balance of projects and limits the ability for any single project to monopolize the pool’s composition.

Adjustments in the form of fees are applied to deposits and redemptions, and are calculated based on the pool's post-transaction composition.

• For TCO2 deposits, the adjustments reduce the number of CHAR tokens received by the depositor. The adjustment amount increases as a project's composition within the pool rises.

• For CHAR redemptions, the adjustments reduce the number of TCO2 tokens received by the redeemer. The adjustment amount increases as a project's composition within the pool falls.

Pool health adjustments are calculated as a percentage and are deducted in the form of the CHAR token. Users are provided with full transparency regarding the fees before executing a transaction. Over time, Toucan may update the dynamic fee parameters based on pool activity and performance.