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launched: nov 2021
medium: 
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# Klima

![](../assets/klimadao-home-20220119214836.png)

> ## A DAO, A PROTOCOL, AN ECOSYSTEM
> 
> KlimaDAO’s goal is to accelerate the price appreciation of carbon assets. A high price for carbon forces companies and economies to adapt more quickly to the realities of climate change, and makes low-carbon technologies and carbon-removal projects more profitable.
> 
> Through the KLIMA token, we will maximize value creation for our community and create a virtuous cycle of growth. Eventually, the KLIMA token (each backed by real, verified carbon assets) will function as a truly sustainable asset and medium-of-exchange, with real planetary value.

# Commentary

Looks like the algo stable coin part isn't going so well. Similar to [[dao/olympusdao.finance]]

![](../assets/klimadao-price-chart-20220123211825.png)


# Summary

* It takes significant work to work how this actually works ... (is it like [[dao/diatom.fund]] which has a relatively clear diagram ...)
* (I think) Klima tokens are minted when they buy carbon offsets and store them in the treasury

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# https://docs.klimadao.finance

## The Problem (with some very dubious analysis)

> We generally consider that the market itself is rational, and assume that it values things in a perfect way. We ignore the paradoxes in front of us everyday. Water, a necessity for life is essentially free across (much of) the world; diamonds have no real utility for us, yet in the free market they are priced exorbitantly, excluding all but the world’s richest.

Who is we here? This is the diamond-water paradox which is precisely about how price != value ... (rather price arises from intersection of demand and supply ...)

> In the past, the market price of a good was determined by the socially necessary labour inputs required to create it. In recent times we have moved to a system where subjectivity and speculation are key driving forces behind prices.

This the (very erroneous) marx-originated labor theory of value. Price was never (purely) determined by the labor inputs to create something.

> Value has become totally detached from the ‘market’.

Well it was always only partly related ... And there are other reasons that is now so (information economy etc).

## What KlimaDAO does

> Klima DAO gives Web3 builders and users the opportunity to participate in the carbon market through the KLIMA token. KLIMA tokens are:
> 
> -   fungible: per the ERC20 token standard   
> -   backed: by at least 1 tonne of tokenized verified carbon offsets locked in the Klima DAO treasury
> -   useful: holders of KLIMA will have the ability to vote on Klima DAO policy
> 
> Therefore, the DAO serves the role of "de-central" bank, governing the monetary policy of this new carbon-backed currency, just as a central bank governs the monetary policy of a fiat currency. Over time, we will build an economy around KLIMA by driving adoption and unlocking growth of the _crypto-carbon_ economy.
> 
> By developing Klima DAO on transparent and open-source infrastructure, participation from Web3 developers, carbon projects, and climate experts will be welcomed, to both build this new economy and be rewarded for their contributions.

Any clearer?

## https://docs.klimadao.finance/klima-dao-ecosystem

