We’d like to announce the Climate Collective Treasury proposal as a CGP for the Celo community.
The key objective of this proposal is to rapidly position Celo at the forefront of the Regenerative Finance (”ReFi”) movement. To this end the Climate Collective Treasury will galvanize activity around development of climate-related web3 initiatives, as well as through local communities and special projects utilizing these products and protocols.
The purpose of the Climate Collective Treasury is to support projects utilizing web3 to combat climate change through grant funding for project development, integration, and adoption. The proposed areas of focus broadly map to initiatives from the Collective’s founding members, with the overarching goal of positioning Celo as the go-to climate-positive blockchain and ecosystem.
This proposal will ask for 7 Million CELO from the on-chain governance in order to target a number of projects of varying scale. We believe with this Treasury proposal we can durably increase developer and user activity on Celo through the lens of climate action, and make Celo the primary chain for regenerative activity.
The multisig for this proposal is composed of the following:
- Nirvaan Ranganathan - Climate Collective
- Craig Wilson - Climate Collective
- Ottavio Siani - Climate Collective
- Renc Korzay - Curve Labs
- Luuk Weber - Kolektivo
- Slobodan Sudaric - cLabs
- Nikhil Raghuveera - Celo Foundation
We welcome feedback on the CGP here. Read the proposal below and on Github.
CGP 52: Funds for Climate Collective Treasury
cgp: 52
title: Funds for Climate Collective Treasury
date-created: 2022-03-22
author: Nirvaan Ranganathan, Craig Wilson, Patrick Rawson, Slobodan Sudaric
status: DRAFT
discussions-to: https://forum.celo.org/t/the-climate-collective-treasury/3157
governance-proposal-id:
date-executed:
Table of Contents:
- Overview
- Objective
- Proposal Overview
- Areas of Focus
- Natural Capital Tokens
- Regenerative NFTs
- Digital Cash Operations
- ReFi Products
- Structure
- Climate Collective Members
- Multisig
- Budget
- Verification
- Context
- Marketing Challenges
- Known Constraints
- Proposal Risks
- Appendix
Overview
Objective
The key objective of this proposal is to rapidly position Celo at the forefront of the Regenerative Finance (”ReFi”) movement. To this end the Climate Collective Treasury will galvanize activity around development of climate-related web3 initiatives, as well as through local communities and special projects utilizing these products and protocols.
Proposal Overview
The purpose of the Climate Collective Treasury is to support projects utilizing web3 to combat climate change through grant funding for project development, integration, and adoption. The proposed areas of focus broadly map to initiatives from the Collective’s founding members (outlined in Structure section), with the overarching goal of positioning Celo as the go-to climate-positive blockchain and ecosystem.
Areas of Focus
There are four key areas this effort will focus on (see Appendix for more information on current targets and strategic partners).
Natural Capital Tokens (natcap)
Definition: Semi-fungible ERC20 tokens that represent either:
(1) An outputs-based financing of an ecosystem service such as a carbon offset
(2) Ownership of territory or other ecosystem assets
(3) Stewardship of an ecosystem producing valuable ecosystem services (e.g. token payments for ecosystem services such as biodiversity).
Mission: To systematically increase the liquidity of existing natcap tokens on Celo, and support the development of new climate-positive tokenized assets
Context: Through CGP30 Celo successfully onboarded a 0.5% target allocation for MCO2 tokens to the Reserve in late July ‘21, and founded the Climate Collective in early October ‘21 to achieve the target of 40% nature-backed assets in 4 years. After the launch of Toucan Protocol and KlimaDAO in mid October ‘21, the majority of on-chain natural capital has gravitated to the Polygon network (including MCO2 since KIP7 in mid January ‘22), with a healthy distribution between the Klima reserves and DEX liquidity pools.
In order to codify standards for natural capital in the Celo reserve, Celo must increase the liquidity and diversity of natcaps on its own chain by either bridging or natively supporting projects who produce natcaps. The following table is a snapshot of the Climate Collective’s Green Token Dashboard prototype as of 3/7/22 — an early attempt to articulate a methodology for natcap “certification” that adheres to strict, pre-defined standards about what does or does not qualify as a natcap:
Name | Symbol / Chains | Supply / Market Cap | Liquidity | Reserves |
---|---|---|---|---|
Toucan Base Carbon Tonne | BCT / Polygon | Supply 18,260,576 / $52,225,249 | Sushiswap holds 6M in USDC pool + 1.37M in KLIMA pool + others = 7.37M BCT ~ 33% | Klima holds 9,154,847 BCT = $34,650,680 = 51% |
Toucan: Nature Carbon Tonne | NCT / Polygon | Supply 1,191,322 / $7,660,200 | Sushiswap USDC pool 924,100 = 77.5% | N/A |
Moss.Earth: Carbon Credit | MCO2 / Ethereum, Polygon, Celo | 3,185,540 / $32,239,317 Ethereum: 2,845,084 (92%); Polygon: 251,870 (5%); Celo : 88,586 (3%) | Uniswap ETH + USDC = 1,737 (0.06% onchain); Quickswap USDC = 50,364 (33% onchain); Ubeswap mcUSD + others = 2,093 (3% onchain) | No ETH reserve; Klima holds 165,654 MCO2 = 65% onchain supply; Celo holds 83,333.67 MCO2 = $1,186,475 = 94% onchain supply |
Target Outcomes
By 6 months from now:
- Collaboratively define quantitative standards for reserve assets including legal due diligence, financial measures (liquidity sources, transaction volume, historical prices, available trading pairs, etc.), ESG criteria, and availability on Celo
- Complete Balancer v2 contract migration in partnership with Symmetric and port the Gnosis Safe and key Safe applications to Celo, opening up the possibility for a Carbon or ReFi index on Celo, ReFi DAOs on Celo, and supporting composable DAO tooling (e.g. Zodiac, a Safe app that enables cross-chain DAO formation).
- Develop cohesive strategy around existing and imminent natural capital assets including Moss (MCO2), Toucan (BCT, NCT), and Flowcarbon (GNT)
- Launch & publicize Toucan Carbon Reference Pools on Celo at the beginning of Q2
- Onboard upcoming Nature-Based Carbon Tonne (NBT) Toucan Carbon Reference Pool token
- Provide up to $10M initially to support liquidity for green asset pools by purchasing and holding natural capital backed assets such as tokenized carbon credits
- Establish Carbon SubDAO and LP-Index to curate natural capital asset holdings, for future use in the Celo Reserve through separate governance proposal
By 9 months from now:
- Support new use cases including forward financing, land ownership, GWP conversion, biodiversity, seagrass
- Setup ‘carbon-denominated’ grants program focused on carbon assets for which there is no existing tokenization pathway or solution (see Budget & Appendix)
- Help prototype risk dashboard simulator for Celo Reserve
- Partner with liquidity services that support Protocol-Owned- and/or Rented- liquidity
- Submit proposal to Celo Governance to onboard a Carbon SubDAO-governed LP-index of natcap tokens
- Support development of climate-specific DEX and liquidity pools
Regenerative NFTs
Definition: Artistic or data-driven non-fungible tokens that have a causal or programmatic link to climate action
Mission: To build abstractions for common fundraising patterns and support new use cases with NFTs
Target Outcomes
By 6 months from now:
- Support creation and drive adoption of self-service NFT storefronts for art-based fundraisers that donate proceeds to climate projects
- Support initiatives linked to regulation and compliance that have an ”off-chain floor value”
- Support development of Regenerative NFT Toolkit including forkable marketplace implementations, and fractionalization to turn non-fungible assets into semi-fungible tokens for broader use cases
By 9 months from now:
- Support projects in implementing geospatial web3 primitives, such as Astral Protocol’s upcoming GeoNFT, for the purposes of tokenizing land ownership, data-production, stewardship, or augmented space.
- Support gaming and metaverse initiatives that attract wide participation
- Experiment with Internet of Things (IoT) sensor integrations and other environmental monitoring applications.
Digital Cash Operations
Definition: Financial services technology and support primarily in emerging markets
Mission: To leverage Celo’s mobile-first blockchain and regional infrastructure to address pain points in traditional climate finance
Target Outcomes
By 9 months from now:
- Experiment with new token issuance models that are related to climate or ecological data, such as an airdrop that can be claimed by persons experiencing serious heat stress, drawing attention to the record temperatures of the present as well as demonstrating the massive potential for cryptocurrency in relation to relief efforts or payments for ecosystem services.
- Facilitate at least 1 integration between an on-the-ground initiative and Umoja
- Experiment with new industries such as micro-mobility
ReFi Products
Mission: To use constructs from Decentralized Finance to help frame the regenerative economy
Target Outcomes
By 4 months from now:
- Develop and maintain “Green Token Dashboard” with financial measures and ESG indicators, similar to DeFi Pulse
- Facilitate certification of Celo blockchain as carbon-negative from accredited institution
- Develop and maintain Celo Energy Consumption Report to help projects explain Celo adoption to their users and/or community
- Provide resources to combat marketing challenges associated with Bitcoin and crypto
- Support social tokens linked to regenerative activities and communities through ecosystem fund with Socialstack
By 8 months from now:
- Establish ReFiDAO platform and associated initiatives with ecosystem partners
- Join other natural capital related DAOs and participate in governance
- Issue a quadratic funding round on Celo for ReFi projects across web3, using a quadratic funding primitive such as Clr.Fund
- By 12 months from now:
- Support development of gamified saving pool exclusive to natcap/green tokens
- Launch Index product with green/natcap tokens to increase liquidity and awareness
- Coordinate with MakerDAO to onboard regenerative collateral assets from Celo
- Design a metastable utility token to address fragmented liquidity issues (RAI/Balancer omnidirectional ”mycorrhizal pool”)
Structure
Climate Collective Members
The Collective’s 13 founding members have demonstrated commitment to our mission and successfully delivered relevant work on Celo. Grant recipients from the Treasury would be admitted to the Collective after meeting these membership conditions through a publicized induction ceremony. All members are expected to join a lazy committee to support governance processes such as curation of CLR Quadratic Funding rounds, elections of Carbon SubDAO, participation in virtual events, and involvement in future products, events, and initiatives.
Table: Climate Collective founding members in alphabetical order
Name | Representative |
---|---|
Allegory | Ed Walters |
Astral Protocol | Holly Grimm |
Byterocket | Marvin Kruse |
Celo | Xochitl Cazador |
cLabs | Slobodan Sudaric |
Curve Labs | Patrick Rawson |
Flori | Maria Alegre |
Kolektivo Labs | Luuk Weber |
Loam | Birju Shah |
Moss | Luis Adaime |
Regen Network | Gregory Landua |
Toucan Protocol | Raphael Haupt |
Wren | Landon Brand |
Multisig
The Multisig contract address is 0x1E82710b7E1DA35cf6df443F0EBAb865B49163BB and found here.
Name | Affiliation | Address |
---|---|---|
Nirvaan Ranganathan | Climate Collective | 0xD808Ef141CC6D4cE8A3cA63f457D2a4d831fbE79 |
Craig Wilson | Climate Collective | 0x52b485860cB58d1f283D23985002fE1B9CC8311E |
Ottavio Siani | Climate Collective | 0x6c3FFEf67e82D745449d7048C7C6Df10a322C0eC |
Renc Korzay | Curve Labs | 0x23d817fA0F3C9F77e45880dBE99eDDfafB59142c |
Luuk Weber | Kolektivo | 0x0261842bdDB13418fAe2B7567fc340bAa585b950 |
Slobodan Sudaric | cLabs | 0x7cC9F1f0404eAeC03f6B29fDCf61F46001F98928 |
Nikhil Raghuveera | Celo Foundation | 0x51bB2EDfbE14EA58B7b0BA94A641cFE41AB4e9b2 |
Budget
This CGP is requesting 7 Million CELO from the on-chain governance Community Fund, which will be distributed as indicated below. Based on grantee requests, some of the CELO tokens may be collateralized in the Celo Reserve to mint and disburse cUSD. “Carbon-Grants” refers to off-chain assets that will be disbursed as carbon-denominated grants to appropriate tokenization solutions.
Area | Allocation (MM CELO) |
---|---|
Engineering | 2 |
Community Building | 1 |
Operations | 0.2 |
Marketing | 1 |
Carbon-Grants | 0.3 |
Liquidity Launches | 2.5 |
The proposal will also have 3 checkpoints after each 33% percentage of the Treasury is used.
Verification
[
{
"contract": "GoldToken",
"function": "approve",
"args": [
"0x1E82710b7E1DA35cf6df443F0EBAb865B49163BB",
"7000000000000000000000000"
],
"value": "0"
}
]
Context
Marketing Challenges
To many followers of both industries, “crypto & climate” seems like an oxymoron or contradiction primarily due to the negative coverage around Bitcoin and Proof-of-Work. Changing this impression is crucial to community development and adoption of Web3-based ReFi products. The Celo community briefly experienced such social media backlash following the announcement of the Kickstarter integration.
The Climate Collective will provide resources that help projects explain their decisions to leverage web3 tools towards climate action, with a focus on highlighting Celo’s carbon-negative status, mobile-first sustainable architecture, and other unique features.
Known Constraints
Based on conversations with prospective Climate Collective grant recipients and Celo ecosystem members, we have identified several “primitives” and integrations currently absent on Celo but not directly linked to climate.
- OpenSea Compatibility or alternative NFT marketplace
- Treasury Management using Gnosis manager applications
- Token Gating integrations for Discord servers
- Cross-chain DEX integrations beyond SushiSwap
- Programmable cash flows for real-time finance such as SuperFluid
- Analytics platforms such as Dune Analytics for live blockchain statistics
Proposal Risks
We have identified the following risks:
- Technical risk based on missing primitives: as outlined above, there are currently several “functional primitives” or technical building blocks missing from Celo that may deter certain projects or founders from building on Celo
- Competitive risk: certain other blockchain foundations are offering higher value grants
- Performance risk based on where the Treasury is allocating capital: this is mitigated by three checkpoints to gain feedback from community members
- Legal risk: tokenizing land or other ecosystem assets requires substantial buy-in from current institutions and legal systems.
- Conflict of Interest Risks: In the case of a conflict of interest with one of the multisig signer, the COI will be disclosed and the multisig signer will not participate in voting on that specific proposal. Members have been deliberately chosen to minimize potential conflicts of interests with cross-functional members of the ecosystem.
Appendix
Natural Capital Tokens
- Current Targets: FlowCarbon, BitGreen, EdenDAO, Thallo, Likvidi, SolidWorld, Kolor
- Strategic Partners: Moss, Toucan, Kolektivo, Curve Labs, cLabs, ImmortalDAO, Tokemak
Regenerative NFTs
- Current Targets: Wildchain, Invert, Plastiks, GamesForest.Club, Project Ark, Return Protocol, GreenverseWorld, Bloomeria, Yardstick
- Strategic Partners: Celo NFT, Wren, Byterocket, Astral
Digital Cash Operations
- Current Targets: Earthshot, AIRS, Traditional Dream Factory, BasinDAO, Fabricating Future Forests, HERE Mobility Protocol
- Strategic Partners: Valora, Umoja, Astral, Regen, Shamba, Chainlink
ReFi Products
- Current Targets: Index Coop, VoizDAO, ClimateDAO, MoonJelly, MakerDAO, AkornDAO, Trees as Infrastructure
- Strategic Partners: cLabs, Toucan, CLR.Fund, Ubeswap, PrimeDAO, PoolTogether, GoodGhosting, Socialstack
Carbon-Grants
- Current Targets: CarbonBuilt, CarbonTitle, DroneSeed, Bariflo Labs, SouthPole, Raiz Vertical Farms, Graviky