At any point, the holder of a carbon reference token can redeem it for an underlying project-specific TCO2 token. This burns the carbon reference token and sends the underlying tokens to the user.
This opens up arbitrage opportunities if a particular TCO2 could be deposited into multiple pools, and guarantees the creation of a price floor for on-chain carbon reference tokens.
It's important to note that when redeeming, you can:
  • auto redeem (which gives you the lowest ranked TCO2s)
  • selectively redeem (which gives you the TCO2s you specify and costs a fee)
Side note: ranking of TCO2s is done manually by us, and is based on criteria: like year, methodology, location, etc.
We have a tutorial on how to retire that also shows the redeeming process here.