The Toucan Protocol, a service grounded in blockchain and smart contract technologies, provides the infrastructure for the tokenization of carbon offsets. This streamlines the trading process and expands the applications of carbon offsets. You can read more about the Toucan Protocol’s tokenization and the carbon pooling process in this article. The Nature Carbon Tonne (NCT) is the result of these processes.
The criteria for NCT tokens are stricter than those for other Toucan Protocol BCT tokens. The criteria include:
- Issuance only through the Verified Carbon Standard Program.
- Use of VCS methodologies and solely nature-based solutions. If a climate project employs both a nature-based methodology and a non-nature-based methodology for the same credit issuance, its carbon credit tokens will not qualify for NCT.
- Acceptance of vintages from the year 2012 and later, accompanied by a 10-year rolling acceptance window.
NCT Issuance Process and Use Cases
The NCT token was officially launched in February 2022.
The current supply is 1,586,298 tokens. 2,399,576 TCO2 tokens were deposited in the NCT carbon pool. 813,279 NCT were redeemed.
As we can observe, the active phase of depositing TCO2 into NCT Carbon Pool continued until May 2022. After this period, the redemption process began. Out of the total, 13,494 NCT tokens were retired using the KlimaDAO retirement aggregator tool, accounting for less than 1% of the total supply.
The value of NCT has been on a consistent decline since March 2022
At present, the Toucan Protocol has temporarily halted the issuance of TCO2, which serves as the foundation for the NCT carbon pool, in response to a statement from Verra. Concurrently, this statement has led to a depreciation in the environmental value of NCT when considered for retirement.