Coorest: Pioneering a Unique Carbon Standard
In today’s world, addressing climate change is a critical concern. Many companies are contributing to this cause through various innovative solutions. Coorest is one such organization that has developed its own carbon standard, the Coorest Carbon Standard (CCS), to bring transparency and credibility to the voluntary carbon market.
Concept
Coorest has created the Coorest Carbon Standard & Methodology to guide climate projects through the voluntary carbon market. The credibility of the standard is ensured by independent verification from Earthhood, a certified carbon auditor. The process for onboarding projects includes several key steps:
- Registration of the project
- Evaluation to ensure alignment with Coorest’s carbon guidelines
- Signing of the onboarding agreement
- Issuance of an onboarding report
- Minting NFTrees (tokenized trees representing carbon sequestration)
- Project registration on the blockchain
- Monthly issuance of carbon tokens ($CCO2), based on project size and performance
The goal is to support climate initiatives focused on reforestation, afforestation, agroforestry, and orchard projects. Onboarding is free, and there are strict guidelines about the types of species that can be planted. Native vegetation is preferred, and non-invasive exotic species are only allowed when necessary. Each project must commit to a minimum of 20 years to ensure long-term sustainability.
The Coorest methodology estimates carbon sequestration based on various factors, including tree species, age, height, diameter, and soil characteristics. The calculation also includes above- and below-ground biomass and soil organic carbon stock (SOCS). This ensures an accurate estimate of how much carbon each project absorbs.
Onboarded projects are required to plant an extra 10% of each species or leave 10% of their trees untokenized to account for possible damages. Each project site should be mapped using GPS surveys, drone mapping, or satellite imagery. Coorest also monitors biomass using satellite data annually, in collaboration with Floodlight and Chainlink, ensuring compliance with the carbon sequestration commitments.
Coorest welcomes projects from all over the world. Current projects, as shown on their website, are based in Spain, Angola, Kenya, and Argentina, though no public registry of projects is available.
Blockchain Technologies
Coorest integrates blockchain technology into its carbon market, creating transparency and accountability for the projects it supports. The platform uses the Polygon blockchain, combined with Chainlink, a decentralized oracle network that provides tamper-proof data for smart contracts. Since blockchains cannot independently access external data, Chainlink plays a vital role by providing verified real-world information, such as satellite data, to support Coorest’s carbon calculations.
The platform also tokenizes trees through NFTrees—digital representations of trees planted in carbon capture projects. There are two categories of NFTrees:
- Fruit-bearing NFTrees, representing trees like pomegranate and fig. Holders of these tokens can receive rewards from fruit sales and $CCO2 tokens.
- Forest NFTrees, representing trees in reforestation projects that generate only $CCO2 tokens.
The carbon tokens, $CCO2, are generated monthly based on satellite data and smart contract interactions. One $CCO2 token equals 1 kilogram of absorbed CO2.
Coorest also issues Proof of Carbon Compensation (PoCC) certificates as NFTs, providing clear proof of compensation. When $CCO2s are burned, a PoCC is created, documenting the compensator, the date, amount of CO2 offset, and reason for compensation. These certificates are stored on the blockchain to ensure authenticity and immutability.
$CRST is a multi-utility governance token, giving holders voting rights in the Coorest ecosystem. It can also be used to purchase assets on Coorest’s marketplace, including in-game items tied to Coorest’s planned metaverse game, Nova Terra.
Coorest offers a decentralized application (DApp) where users can buy, sell, or burn tokens to offset their carbon footprint. This DApp is designed to be accessible and user-friendly for both individuals and businesses.
At present, users cannot purchase PoCC certificates, NFTrees, $CCO2, or $CRST tokens through Coorest’s DApp, because it’s impossible to connect a wallet to the platform. However, NFTrees are available for purchase through third-party platforms like OVR Marketplace and PoCC through Dimarjan.
Team, Investments, Marketing, and Community
Coorest is led by a team:
The project has secured funding from Chainlink and through an Initial DEX Offering (IDO) of its governance token, $CRST. While the initial goal for the IDO was $10.5 million, Coorest raised $475,000, which was used for further platform development and marketing efforts.
Though Nova Terra and the mobile game My Coorest Tree were not released, the idea was to create a play-to-earn model where users could engage in virtual farming and earn $CCO2 tokens. Despite these ambitious plans, they remain unrealized.
Coorest’s social media presence is minimal, with engagement on platforms like X (formerly Twitter), Instagram, and LinkedIn being low.
Current Investment Attractiveness
Currently, Coorest does not offer tools that enable investors to generate returns on their investments. In 2023, the liquidity pool for Coorest’s tokens was closed. Moreover, there is little information available regarding the investment potential of NFTrees or $CCO2 tokens. There is no clear evidence of active use, market demand, or pricing for these tokens, making it difficult to assess their attractiveness or viability as investment assets.
Areas for Improvement
Coorest set ambitious goals, not only as a carbon standard and offset broker but also as a creator of a metaverse game. However, the project’s execution has encountered significant challenges, likely due to a combination of insufficient funding and limited experience.
In retrospect, Coorest might have benefited from focusing more on promoting its carbon standard from the start. Successful examples like Open Forest Protocol highlight the potential value of well-established standards. In the absence of strong demand for its own carbon offsets, Coorest could have explored registering its climate projects with widely recognized standards such as Verra or Gold Standard, which would have added credibility and attracted more investment.
In the long term, Coorest should prioritize acting as a broker to market carbon credits, specifically targeting corporate clients—the primary customer base for carbon offsets. It may have been overly optimistic to depend heavily on decentralized exchanges or public marketplaces, as these tools are not widely used by the corporate sector for carbon trading.
The metaverse and gaming elements, while creative, were unlikely to generate significant demand for carbon credits. Although the idea added an interesting dimension to the project, it was probably too niche to have a meaningful impact on the broader carbon market.
Coorest remains a promising initiative with a solid foundation, thanks to its already created carbon standard and infrastructure. However, moving forward, the company needs to refine its strategy by focusing on attracting investment and actively promoting its carbon standard. Without a stronger focus on establishing credibility and demand, efforts to sell the already produced carbon credits are unlikely to succeed.
