Earn Rewards while Saving the Planet with KlimaDAO

Climate change is one of the most pressing issues of our time, and there have been many efforts launched in a bid to make a difference. One unique solution within web3 is KlimaDAO, a decentralized autonomous organization (DAO) that aims to address the many flaws of traditional carbon markets and allows users to offset their carbon emissions by purchasing and retiring (i.e. taking out of circulation) carbon credits.
Carbon credits can be used to offset the carbon emissions of an individual or company’s activities through reforestation, renewable energy, etc. Carbon credits can be bought and sold in a carbon market by different market participants.
The Voluntary Carbon Market (VCM), which is primarily driven by private actors, is a marketplace where one can purchase or sell carbon credits that represent the reduction or removal of greenhouse gases. Although it is not regulated by governments, they can utilise these markets to scale up emissions reductions and direct financing into environmental sectors.

The VCM has experienced significant growth in recent years and is expected to continue growing as the world tries to bridge the carbon emissions gap. However, the market lacks transparency and can be difficult for newcomers to understand due to its complex terminology and high barriers to entry.
Last year, KlimaDAO introduced the Digital Carbon Market (DCM), an advanced, web3-based version of the voluntary carbon market leveraging Decentralized Finance (DeFi) technologies such as programmable smart contracts and Automated Market Makers (AMMs).
The DCM makes it easier for buyers and sellers to connect while significantly reducing transaction costs compared to the traditional carbon market.
KlimaDAO aims to contribute to the fight against climate change by providing a transparent, open digital carbon infrastructure, which connects carbon credit issuers, traders, and entities who wish to use carbon credits more efficiently. This will enable the market to funnel money to projects that have a positive effect on the environment much more easily.
As part of its pro-climate efforts, the DAO also offers partnerships to other web3 players like networks, decentralized exchanges, and NFT creators, offering to make their projects more environmentally sustainable via one of various carbon offsetting strategies.
Now let’s get to the fun part; how you can earn with KlimaDAO.
How to Earn with KlimaDAO
KlimaDAO’s currency, the KLIMA token ($KLIMA), plays an important role within the ecosystem. $KLIMA is the organization’s governance token, meaning holders are involved in the DAO’s decision-making process.
Apart from buying from exchanges, there are two ways you can get $KLIMA: bonding and staking.
Bonding
The value of $KLIMA is backed by tokenized versions of carbon credits on the blockchain, such as Base Carbon Tonnes (BCT), locked in the KlimaDAO treasury. A $KLIMA token is minted for every carbon tonne worth of tokens deposited in the treasury.
You can get $KLIMA by buying BCT or any accepted digital carbon asset, such as NCT, NBO, UBO, and MCO2, and depositing it in the KlimaDAO treasury. This process is known as bonding. After bonding, you must wait five days for your $KLIMA rewards to be fully released.
One attractive perk of bonding is that you receive a discount for your $KLIMA tokens compared to buying them on an exchange. Additionally, there is no slippage.
Note: KlimaDAO’s bonds are currently paused, so keep an eye out for when bonding reopens in the near future.
Staking
According to the project, staking is the primary reward distribution mechanism of KlimaDAO. By staking your $KLIMA tokens, the protocol rewards you by increasing the amount of tokens in your possession at roughly the same rate as the expansion of the overall amount of $KLIMA tokens in circulation. This protects you against inflation when the KlimaDAO protocol issues more tokens during the bonding process.
The $KLIMA token rewards are minted and distributed to stakers when the treasury has more than enough digital carbon assets needed to back $KLIMA. The staking rewards rate is set by KlimaDAO governance and ultimately decided on by the community.
You can learn more about bonding and staking in the KlimaDAO docs
Final words
KlimaDAO has achieved great success so far, and the project seems miles ahead of any competition. Indicators point to KlimaDAO possibly becoming a key player in the carbon industry, potentially making its token more valuable in the future.
The best part is that participating in the KlimaDAO ecosystem allows you to join the fight for a healthier planet while earning crypto.
Of course, as always, remember to do your own research and due diligence before investing.