MOSS carbon (MCO2)Token specifications
MCO2 (“Moss Carbon Credit”) is a blockchain based ERC20 token that represents ownership of one carbon credit (i.e., a digital certificate in the voluntary market that attests the avoidance of the emission of 1 ton of GEE in carbon dioxide equivalent units) registered with a globally recognized registry. The U.S. Commodity Futures Trading Commission (“CFTC”) and U.S. Securities and Exchange Commission (“SEC”) recognize carbon credits as commodities akin to wheat and soybeans rather than financial instruments, securities or derivatives because they are capable of being delivered by ownership transfer and consumed through retirement or offset in compliance with the terms of mandatory or voluntary environmental programs.
MCO2 tokens can be freely transferred between Ethereum wallet addresses and can be sent to an Ethereum address specified by MOSS to ‘retire’ the MCO2 Token (i.e., make it unusable), whereby MOSS will retire the corresponding carbon credit. The MCO2 holder consumes or uses the token for its intended function by retiring the associated carbon credit to offset emissions.
MOSS will generate an unlimited supply of MCO2 tokens based upon supply of and demand for carbon credits. MOSS mints MCO2 tokens according to MOSS’s total trusteeship of carbon credits. MOSS performs the same trustee function with respect to MCO2 as it performs with respect to carbon credits that it sells directly to its clients in non-tokenized form. The tokenization of carbon credits does not change this process in any way.
An MCO2 holder has legal ownership of an associated carbon credit by virtue of holding the MCO2 token. The legal ownership is registered via a standardized contract called a VERPA (Verified Emission Reduction Purchase Agreement), and MOSS expects tokenization to expedite and turn this transfer of legal ownership in transactions to a safer, publicly traceable and auditable process, increasing the utility of carbon credits.
MCO2 tokens are “bankruptcy remote,” since tokenized assets are kept separate from the company’s assets. MOSS simply holds the assets in the token’s and customers’ names, and the token holders’ assets and legal ownership will not be impacted by insolvency. MOSS will make publicly available a reconciliation at MCO2 certification.moss.earth, where holders can check the total supply of tokens on the Ethereum blockchain and compare it to the regular inventory of the carbon credit market. All credits follow global certification protocols and are registered at the most reputable global registries for the voluntary market.
MOSS sends all transactions to Ethereum’s blockchain and generates events from its state via APIs provided by a third-party tokenization company, One Percent. The documentation will be held by the MCO2 token owner.
MCO2’s purpose is to provide a utility or service to the holder. MCO2 does not entitle its holder to any rights of participation (monetary, voting rights) against MOSS or against any of the environmental projects that certify and issue carbon credits, dividends, returns, votes or any other type of financial distribution. The projects’ financial and operational performance are not related in any way to the carbon credits or MCO2 tokens.
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