Once a project's carbon credits have been tokenized and fractionalized using the Carbon Bridge, these credits are represented as
TCO2tokens (Toucan carbon tonnes). A
TCO2token contract still contains all the project-specific attributes, such as the project's country or methodology. This means tokens from one project are not interchangeable with tokens from another project, even if they are very similar.
Each pool has a unique configuration and carries a certain logic that dictates which
TCO2tokens can be deposited into it. This logic is based on two filters:
- 1.Is the token to be deposited a
TCO2Toucan carbon token?This check guarantees that only whitelisted token contracts are accepted and prevents somebody from depositing a custom token into a carbon pool.
- 2.Do the
TCO2token attributes satisfy the pool's requirements?When a pool is deployed, it needs to specify gating attributes. Any
TCO2token deposited in the pool must contain at least these attributes — otherwise the deposit transaction will revent.
A few examples of gating attributes a carbon reference pool might have:
type = removal— a pool that only accepts carbon removal credits.
vintage = >2015— only accepts credits from 2016 and later.
country = Colombia— only accepts
For example, we could create a carbon removal pool, with a token called
CRT(carbon removal tonne). This specific pool would only carry one defining attribute:
type = removal. In this case, the carbon removal reference token could be called
Of course, pools could also use a combination of gating attributes, meaning we can create liquid carbon reference tokens backed by pools of similar tokenized credits.
For now, the Toucan team has worked with collaborators at KlimaDAO to deploy the first carbon reference pool, the Base Carbon Tonne (BCT). The gating attributes for the Base Carbon Tonne reference pool:
TCO2tokens must be Verra VCUs, and they must have a vintage of 2008 or greater.
Soon we will publish a post detailing our path to decentralization, where we will describe our plan to make the creation of these pools completely permissionless in the future. This will empower market actors to create curated carbon pools, and for the market to decide which attributes are seen as key differentiators.