Kyoto Carbon Credit Forward Tokens

Description

Kyoto Carbon Credit Forward Tokens are backed by forward agreements which are entered between Digitorize Ltd. (as dev team of KyotoDEX) and any credible Sellers who already have or have access (due to the nature of their business) to carbon credits, these parties can be carbon credit brokers, issuers or investors.

Under the agreement, in consideration for an upfront payment by Digitorize (representing KyotoDEX), the Sellers will commit to deliver X amount of carbon credits at a pre-defined price, at or before a pre-defined future delivery date.

The status of the carbon credits in question must be 'Active' (the carbon credit hasn't been retired or deleted from the carbon registries) and classified as 'Guaranteed reductions' which means that the project's carbon emission reduction has been verified and the carbon credits have been issued by the carbon standard bodies and exists in their registries.

The Token name: Kyoto Carbon Credit Forward Token

The Token symbol: KYOCF-[series number/letters].

Since the underlying carbon credits to be delivered are 'active', owners of KYOCF can freely trade their KYOCF on the KyotoDEX.

User who wants to offset their carbon footprint can purchase KYOCF but can only retire it a few days after the predefined delivery date.

Token Structure

Structuring of Kyoto Carbon Credit Forward Token follows the activities below:

1. Originate future voluntary carbon credits by entering into forward contract with Carbon credit brokers or issuers at a pre-defined delivery time and prices.

2. Tokenize the carbon credits into multiple carbon credits forward tokens (1 KYOCF token = 1 kgCO2e) once the forward contract has been signed.

3. Listing of KYOCF on KyotoDEX.

4. Owners of KYOCF can only redeem KYOCF for carbon offset certificates at or after the pre-defined delivery date.

"A forward contract constitutes a binding agreement in which the offset provider commits to deliver emission reductions to the buyer at a pre-defined time and price. The provider may have access to future emission reductions from a certain project or portfolio of projects, or may have existing emission reductions available. For both the provider and the buyer, a forward contract is a way to eliminate market price risks and secure a desired transaction price, even though delivery may not occur for months or years. Such an arrangement protects the provider from falling market prices, and the buyer from rising market prices. Forward contracts may specify a fixed or proportional amount of offsets to be delivered."

Carbon Offset Research & Education Program by Greenhouse Gas Management Institute and the Stockholm Environment Institute