Adam Neumann’s Flowcarbon has been forced to halt operations and rollout of new products amid the current crypto bear market.
According to CEO and co-founder Dana Giber, the company that stores carbon credits on the blockchain is waiting for the crypto market to stabilize. When companies buy carbon credits, FlowCarbon issues tokens, which can be burned when a company wants to retire the credit.
Carbon credits have historically been used by large corporations to compensate for pollution brought into the atmosphere. A project developer will raise funds by selling carbon tokens to a company wishing to offset its carbon footprint. A carbon credit represents one metric ton of carbon that will be removed or prevented from entering the atmosphere. Carbon credits provide the right to claim an offset when a company chooses to retire a credit by taking it off the market forever.
Carbon credits are issued through brokers or purchased directly from project developers.
KlimaDAO and the Toucan Protocol Association have started selling carbon credits-linked tokens from October 2021. The purpose of the token is to create a stock market for carbon credits that is liquid, has price transparency, and is accessible. Tokenization unlocks demand. Increased demand puts price pressure on a supply-constrained market, which means that pricing for credit increases. This ultimately means more revenue for projects where they may wish to expand, and project developers increased supply.
Projects holding existing Carbon credits can submit their credits to FlowCarbon’s registry account, a database type. Each Carbon Credit is represented one-to-one in a GC02 token owned by the entity that owns Carbon Credits. The company represents them as a “bundle” in a “goddess of nature” smart contract, a group of carbon credits representing similar established criteria. The company is then issued a Goddess of Nature token for each GC02 token. When a GNT token is retired, a carbon credit in the registry is retired.
New token launch postponed
Flowcarbon expected to launch a new token by the end of June, a plan that has now been put on hold indefinitely, Gibber said. Toucan and ClimaDao have suspended new business after Vera, a leading carbon credit registry, announced that the carbon credits on its registry could not be used to create new tokens due to confusion about how tokens would be created. could. It is studying new ways to generate tokens.
KlimaDAO and Toucan are awaiting the results of Vera’s research. While waiting for CryptoKitties to pass, they have hunkered down the hatches.
Company made $10M last year, Braggs founder
Flowcarbon was founded by WeWork founder Adam Neumann and his wife Rebekah, and raised $70 million in capital from presales of its tokens from Andreessen Horowitz and General Catalyst in May 2022. Rebekah Newman showed her interest in environmental issues by buying forests near the equator. He challenged the team at Newman’s family office to brainstorm ways to buy forests and make money together. The result was fluocarbon. Newman claimed to the Financial Times that the company did $10 million in 2021. Newman is not involved in day-to-day operations, employees say.
A spokesman for venture capital firm Andreessen Horowitz said the company invests from a long-term perspective and remains confident about the market despite the delay.
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