MCO2 Token and the Amazon Forest

The challenges in VCM that MCO2 addresses.

The MOSS Carbon Credit (MCO2) token was established to fund climate projects in the Amazon forest and to tackle various challenges faced by the voluntary carbon market (VCM)

  1. Liquidity. The traditional carbon market is illiquid because each carbon offset has its own unique characteristics, such as the type of climate project, standard, methodology, and vintage. MCO2 offsets are consolidated into a single pool based on the Program and geographical characteristics
  2. Accessibility: Trading carbon offsets through traditional registries can be challenging for small companies and individuals. MCO2 tokens, as digital representations of carbon offsets, enhance this accessibility without requiring direct interaction with a traditional registry.
  3. Transparency: Many deals in the VCM happen behind closed doors, leading to significant mark-ups for intermediaries. With MCO2, prices are publicly-available, market-driven and free from intermediary markups.
  4. Poor quality offsets: MCO2 tokens are digital equivalents of carbon offsets from the VCS Program.
  5. Double-counting issues: Selling the same credits to multiple buyers. The blockchain-tracked nature of the MCO2 token prevents double-counting.

MCO2 Token Specifications

  • Name: MOSS Carbon (MCO2)
  • Symbol: MCO2
  • Type: ERC-20 token
  • Total Supply: Dynamic, based on the supply and demand for carbon credits
  • Circulating Supply: 2.804,929 million tokens
  • MCO2 Tonnes Retired: 281,088 tokens
  • Blockchain: Ethereum

Carbon offsets were bridged from October 2020 to April 2022. Carbon offsets from various climate projects were used :

  • Fortaleza Ituxi REDD Project — Brazil, 998,210 carbon offsets (32% of the total)
  • Agrocortex REDD project — Brazil, 728,444 carbon offsets (24% of the total)
  • Florestal Santa Maria project — Brazil, 611,641 carbon offsets (20% of the total)
  • Amazon Rio REDD+IFM — Brazil, 140,000 carbon offsets (5% of the total)
  • Madre de Dias Amazon REDD+ — Peru, 579,936 carbon offsets (19% of the total)

Carbon offsets vintage is from 2012 to 2019 with the average year of issuance being 2014.

Use Cases of MCO2 from Amazon forest:

  1. Offsetting Carbon Emissions: When burned by the token owner to offset their carbon footprint, the carbon offset is nullified in the registry, with the MOSS account debited. Tokens and carbon offsets are directly correlated by quantity, serving as fungible tokens.
  2. Trading on Marketplaces, Exchanges

MCO2 Price Trend

There has been a notable decline in the MCO2 token value.

MCO2
https://www.coingecko.com/en/coins/moss-carbon-credit

MCO2 tokens are now available on platforms like Klima DAO and can also be purchased through decentralized exchanges such as Uniswap and Coinbase.

Recent announcements by Verra impacted the value of all carbon offset tokens, and MCO2 was no exception. Bridging and retirement were halted from that point. The future of this project and its already tokenized offsets will become clearer once Verra establishes tokenization rules.