For more than two decades, the carbon credit market has worked to offset the world’s unavoidable carbon emissions, with several billion dollars worth of carbon traded yearly. One would expect that a market this large would offer a high level of sophistication, but the reverse is the case.
The processes involved in trading carbon credits in the current market are manual, benefiting the middlemen more than most projects and concentrating access to the market in the hands of large corporations. This makes the market highly centralized.
But thanks to blockchain technology, JustCarbon plans to decentralize and revolutionize the entire carbon credit market.
What is JustCarbon?
JustCarbon is a blockchain-powered marketplace that allows users to seamlessly offset their carbon emissions while supporting high-quality carbon removal projects to combat climate change. The company is on a mission to digitize and mobilize the carbon assets that are currently available in the market.
JustCarbon is revolutionizing the way that carbon offsetting projects are funded by developing its blockchain-backed platform for friction-free trading of carbon removal assets without any middlemen.
By eliminating middlemen, the platform offers investors, exchanges, businesses, and more a straightforward carbon offsetting mechanism.
Additionally, JustCarbon is creating an equitable environment to ensure that every high-quality project working to offset carbon emissions gets free and fair access to the marketplace.
Founded by crypto and blue carbon experts, JustCarbon wants voluntary carbon markets to be available to everyone, not being concentrated in the hands of a few large corporate investors.
The platform is looking to scale access to funding for project developers and ensure everyone has the opportunity to join the fight against climate change.
How Does It Work?
The platform’s carbon offsetting mechanism is built on its symbiotic token system, the JustCarbon Removal (JCR) tokens. Each JCR token represents one verified tonne of carbon credit sequestrated from the environment with the help of nature-based, environmentally friendly projects.
Carbon credits are an essential instrument in financing the removal of the world’s carbon emissions through nature-based carbon offsetting, such as planting new forests. JustCarbon is designed to make the entire process simpler and more efficient for both buyers and sellers of carbon credits.
To ensure that its JCR tokens are minted from the highest quality carbon credit, JustCarbon only currently sources nature-based carbon removal from producers certified by Gold Standard or Verra (VCS) minted within the past five years.
VCS credits must also have additional certifications such as climate, community, and biodiversity accreditation (CCBA). This increases transparency and boosts the credibility of the platform.
Essentially, by buying JCR tokens, a business, government, or individual is providing funding for a carbon removal project. Buyers can subsequently choose to retire or burn their JCRs to offset their carbon. The JCRs carry a small transaction fee, while all proceeds from the sale of newly minted JCRs provide funding to the projects.
The JustCarbon DAO
Not only does JustCarbon intend to eliminate middlemen from the carbon credit trading process, but it also removes itself from the equation. It does this by decentralizing its administration and governance. Hence, the platform is not owned or controlled by any single entity and does not exist in any one country, rather, it will be run by members of its decentralized autonomous organization (DAO).
The JustCarbon DAO will be controlled by holders of the JustCarbon Governance (JCG) token, who will have the right to make proposals and vote on the future development of the platform.
JustCarbon operates a dual token system with the issuance of JCR and JCG tokens.
The JCR token finances real-world carbon emission reductions. This token has no fixed supply as it is only minted from carbon credits issued by carbon sequestration projects.
The JCG token, on the other hand, is the governance token of the JustCarbon ecosystem. It gives holders voting rights. JustCarbon uses JCG tokens to incentivize users by offering discounts on transaction fees.
Over the next ten years, a total of 1 billion JCG tokens will be distributed to market participants. Both tokens will be listed across several centralized and decentralized crypto exchanges, including Digifinex and UniSwap.