πŸͺ™Tokenomics

Tokenomics

Built for climate alignment, not speculation.


πŸ’Ž What is BCGOLD?

BCGOLD is the fungible, on-chain token that represents:

  • A proportional claim on carbon credits inside the pool.

  • A right to govern credit usage (retire vs sell).

  • A vehicle for long-term ecological alignment via deflationary mechanics.

It is automatically issued upon NFT verification and functions as the core unit of value and participation across the Blue Carbon Gold system.


πŸ“¦ How It’s Issued

Step
Mechanism

1️⃣ Project Pack NFT is sold

Donor funds regeneration; receives Proof of Regeneration NFT.

2️⃣ Project is verified

Verra audits project, confirms hectares restored & carbon potential.

3️⃣ NFT is converted

NFT is automatically converted into BCGOLD, entering the credit pool.

4️⃣ Tokens are claimable

Token amount reflects NAV of verified carbon credits.

⛓️ Only Verra-certified projects are eligible to mint BCGOLD. This maintains credit integrity and prevents dilution.


πŸ“ˆ What Drives BCGOLD Value?

1. Net Asset Value (NAV) Growth

As verified projects add carbon credits to the pool, the NAV behind each token increases.

2. Deflationary Supply Mechanics

Every time credits are:

  • Retired β†’ Tokens are burned.

  • Sold (by vote) β†’ Revenue buys back and burns BCGOLD on the open market.

Fewer tokens + more credits = stronger long-term value.

3. Premium Blue Carbon Demand

Mangrove-based carbon credits command a market premium due to their:

  • High sequestration efficiency

  • Biodiversity & community co-benefits

  • Verra and SD VISta recognition


βš–οΈ Supply and Distribution Logic

Category
Allocation

🌱 Initial Pool

Seeded via verified project NFTs

πŸ§‘β€πŸ’» Protocol Treasury

Covers audits, ops, and platform maintenance

🌍 Contributors

Claimable via NFT conversion only

πŸ”₯ Burn Mechanism

Reduces total supply through retirements and buybacks

There is no infinite minting β€” all token issuance is tied directly to real verified carbon credit generation.


πŸ” Supply Caps & Controls

  • No pre-mines

  • No speculative inflation

  • No token emissions disconnected from impact

🎯 The total supply expands only as new verified carbon credits are added to the pool. It is a carbon-backed issuance model.


πŸ” Token Flow Summary

mermaidCopy codeflowchart LR
A[Contribute to Project] --> B[NFT (Proof of Regeneration)]
B --> C[Project Verified (Verra)]
C --> D[BCGOLD Issued]
D --> E[Holders Vote: Retire or Sell]
E -->|Retire| F[Burn Tokens β†’ Offset COβ‚‚]
E -->|Sell| G[Credits Sold β†’ Buyback β†’ Burn]

🧠 In Simple Terms:

  • You fund real regeneration.

  • You get verified access to the carbon credit stream.

  • Your access is deflationary, governed, and transparently tracked.

This is carbon as an on-chain asset, governed by those who regenerate it β€” not traded by those who exploit it.


πŸ› οΈ Minting Mechanism

BCGold can only be minted through conversion of project-specific NFTs into the token pool.

Requirements for Minting:

  • The NFT must represent a fully funded and executed regeneration project.

  • The underlying project must be certified and verified by Verra, with carbon credits officially issued.

  • Each NFT is assessed based on the credits it represents and converted to BCGold at a NAV-based ratio.

🧾 NAV-Based Minting The NAV (Net Asset Value) of the BCGold pool reflects the verified credit holdings and is recalculated after each Verra issuance cycle. Minting rates are pegged to this NAV, ensuring fair value allocation and preventing dilution.


πŸ”₯ Burning Mechanisms

BCGold tokens are permanently removed from circulation in two key scenarios:

1. Credit Withdrawal (Retirement Claim)

  • A user may choose to burn BCGold tokens in exchange for a proportional share of credits from the BCGold pool.

  • These credits are then retired in the user’s name (typically corporates with Verra accounts).

  • This process is coordinated off-chain by the asset manager and recorded transparently.

2. Governance-Approved Sale

  • The community may vote to sell a portion of credits from the pool to verified corporate buyers via OTC deals.

  • All proceeds from the sale are used to buy BCGold on secondary markets and burn it, tightening supply and reinforcing token value.


πŸ“Š Net Asset Value (NAV) Dynamics

BCGold’s NAV grows over time as:

  • New Verra-verified projects are added.

  • Annual audits issue new carbon credits from existing projects.

  • The cumulative pool of credits increases and is reflected in the NAV oracle.

NAV is calculated based on:

  • Total verified credits in the pool.

  • Market-appropriate pricing (based on recent OTC deal data, benchmark indices, oracles).

  • Supply-adjusted circulating token base.


πŸ—³οΈ Governance Structure

BCGold holders are empowered through on-chain governance mechanisms to determine:

  • Credit Allocation Decisions: What proportion of credits to retire vs. sell.

  • Fee Adjustments: Protocol-level changes to minting, management, or transaction fees.

  • Strategic Development: Treasury allocation, new partner onboarding, or product enhancements.

All governance activity is:

  • Fully on-chain, auditable, and publicly recorded.

  • Enforced by smart contracts with transparent execution logic.


πŸ’° Fee Model on Fund

Fee Type

Rate

Purpose

NFT Minting Fee

3%

Covers platform costs, audit fees, and verification expenses, in agreement with asset manager.

Annual Management Fee

0.5% AUM

Supports protocol ops, asset manager coordination, and R&D.

Credit Sale Fee

3–5%

Applies on credit liquidation; used to sustain infrastructure.


πŸ”„ Summary Flow of Tokenomics

Verified Regeneration β†’ NFT β†’ BCGold Minting β†’ Market Liquidity or Burn

BCGold offers a transparent, finite, and deflationary asset:

  • Minted only after ecological validation.

  • Burned on every credit exit.

  • Governed by holders and aligned with long-term ecological impact.

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