Carbon-credit tokenization firm suffered a delay in the release of the new token. Flowcarbon allows tokens to get burned when carbon credits go away. Both Toucan Protocol Association and KlimaDAO have also stopped new activities.
Adam Neumann’s Flowcarbon is now on the obligation to stop its activities and rollouts of new items amid the current crypto declining market.
According to CEO and co-founder Dana Gibber, the entity that stores carbon credits on the blockchain is waiting for the crypto market to stabilize. Flowcarbon issues tokens when entities acquire carbon credits, which can get burned when an entity desires to retire the said credits.
Carbon credits have historically been a tool to offset pollution spread into the atmosphere by big entities. A project developer would collect funds by selling carbon tokens to a company wishing to offset its carbon emission.
One carbon credit represents one metric ton of carbon that will get prevented from entering the atmosphere. The carbon credit brings the right to claim an offset when an entity desires to retire a credit, forever making it disappear from the market.
On the other Hand, Tokenization Unleashes more Demand
Increased demand applies pressure on a supply-constrained market. This pressure represents pricing increases for credits. This situation ultimately means more profits for projects where they can intend to grow.
Projects with existing carbon credits can house their credits in Flowcarbon’s registry account, a database type. A one-to-one representation of every carbon credit gets minted into GC02 tokens owned by the entity with the carbon credits under its control.
The entity sends them to a so-called Goddess of Nature smart contract representing a “bundle,” an aggregation of carbon credits with similar criteria. The company then gets one Goddess of Nature token for each GC02 token. When a GNT token disappears or gets retired, one carbon credit goes away from the registry.
The New Token Launch Suffered a Delay
Flowcarbon desired to release a new token by the end of June, a strategy which got now postponed indefinitely, according to Gibber. Toucan and KlimaDAO have revealed a suspension of new activities following the highlight of a highly prominent carbon credit registry.
KlimaDAO and Toucan will be waiting for the outcome of Verra’s research. They have secured the designs while they wait for the crypto winter to go away.
According to the Founder, the Company Amassed At Least $10M this Last Year
Flowcarbon got created by WeWork founder Adam Neumann and his wife, Rebekah, and amassed at least $70 million in capital from presales of its items in May 2022 from Andreessen Horowitz and General Catalyst, amongst others. Rebekah Neumann said she is concerned about environmental issues and even managed to purchase forest areas near the equator.
She had challenged Neumann’s family office team to find extraordinary ways to acquire forests and generate profits. The final project was Flowcarbon. Neumann explained that the entity had already amassed at least $10 million in 2021. According to the workforce in the entity, Neumann isn’t involved in the day-to-day operations but remains in line with the company’s structure.
By: Jenson Nuñez
