The Toucan Protocol leverages blockchain and smart contract capabilities to establish a foundation for tokenizing carbon credits. This not only simplifies trading but also broadens the use cases of carbon credits. Dive deeper into the tokenization methods and carbon pooling process of the Toucan Protocol in the linked article. The result of these methods is the Base Carbon Tonne (BCT).
The standards set for BCT tokens are more flexible than other NCT tokens under the Toucan Protocol.
- BCT tokens were only issued via the Verified Carbon Standard Program.
- Only vintages from 2008 onwards were accepted.
Tokenization process started in October, 2021. BCT tokens made their debut in January 2022. There are currently about 18 million BCT tokens in circulation. You can check actual information about price and supply using Polygonscan or KlimaData.
BCT was widely used as collateral for Klima in KlimaDAO during the bonding process. This option is no longer available. In light statement by Verra, the Toucan Protocol has ceased issuing TCO2, which acts as the base for the BCT carbon pool.
There’s been a noticeable decrease in the price and trading volume of BCT because of:
- falling demand and prices for voluntary carbon credits in general
- the announcement of the Verra that such tokens have no environmental value
- the inability to get carbon credits back from tokens due to the one-way bridge model used
The BCT token represents the very first attempt at tokenization. As with any pioneering effort, it had limitations. The primary issue was a lack of coordination between the tokenization process and the standard, which issued used carbon credits. Additionally, the tokens themselves couldn’t be converted back into carbon credits. BCT tokens can now be acquired on platforms such as the RegenNetwork and Klima DAO, or through decentralized exchanges like Sushiswap.
