What is a carbon pool?

A carbon pool is a special type of account that holds similar tokenized credits (TCO2 tokens). There are a few key things to understand about how pools work:

  • Each carbon pool has its own "filtering criteria" — rules defining the attributes that TCO2s must possess to be eligible for the pool.

  • Each carbon pool has its own carbon pool token.

  • For every TCO2 token deposited in a pool, there is a corresponding carbon pool token created on a 1-1 basis.

  • Carbon pool tokens can be redeemed for TCO2 tokens held in the pool — think of them like vouchers that provide access to the underlying credits.

By designing pools in this way, we:

  1. Preserve the diversity of the carbon market, with all differentiating credit attributes on the TCO2 level.

  2. Create a deeply liquid, fungible token on the carbon pool token level.

  3. Give holders of carbon pool tokens access to any of the carbon credits held in the pool.

Since carbon pool tokens are fungible, liquid markets are easily established for them on exchanges. Users can buy and sell carbon pool tokens with ease, while still retaining access to the TCO2s backing them.

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