Klima DAO braindump — Can they do it?
Klima DAO is by far my largest holding in my entire portfolio
It’s no secret that I’m in it to make a lot of money, but I also wholeheartedly believe in what they’re trying to do — the big question for me is: can they do it?
What are they trying to do?
In this article, they quickly sum it up by saying Klima DAO intends to use the blockchain technology to accelerate the appreciation of carbon credits.
Can they actually increase the price of carbon credits in such a way that it forces earth-polluting corporations to actually become greener?
Wtf is a carbon credit tho? 🤔
From Wikipedia:
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas.
The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere.
Unless you’ve been living under a rock, you already know that the green energy sector is about to explode… climate change is a very real threat that will need to be dealt with. Even if you personally don’t think it’s that much of a threat, the people with power do. It’s coming.
The carbon markets are going to go absolutely fucking wild.
$350m of Tesla’s revenue came from carbon credits — down 17% from the previous year. There’s a huge market here.
Playing in the carbon credits market was really only reserved for the big dogs. And now, bc of Klima DAO, people like you and me get to play.
Klima DAO buys up $BCT (Base Carbon Tonne) and locks it away in its treasury thus decreasing the supply of carbon credits.
Carbon credits can be created by forests, for example. Not very easy to just create a carbon credit. If you can verifiably find a way to remove 1 carbon tonne from the environment, you will have just created a carbon credit (to my knowledge anyway).
It’s a supply and demand game then — if Klima DAO is able to soak up and hoard carbon credits, it’ll drive the price sky high AND/OR it’ll force these earth-polluting companies to find ways to become greener so they won’t need to own as many carbon credits.
And since $KLIMA is backed by $BCT, the average person can come in and essentially buy 1 carbon credit and just hold onto it. The price will eventually go up and they’ll of course earn a profit. But there will be an audience of people who will literally just want to buy $KLIMA to help force the price of these carbon credits up and have a hand in reversing climate change.
I hope this DAO stays under the radar for a while yet bc I’m loving these APYs. They absolutely will not last so I want to soak up as much as I can for as long as I can.
Intrinsic value?
I’ve read that the intrinsic value of $KLIMA is = to 1 BCT — and BCT right now is about $7 lmao 🥴
(You can check the current price using this CoinMarketCap link)
But on this page, it looks like it says circulating supply is backed by 5.08 BCT currently — I’d think that this gives us a better look at intrinsic value but I really have no idea
Honestly, there’s a lot of data on that page that I have no idea how to comprehend yet
If this was correct, the intrinsic value would be current price of $BTC X 5.08 = $36.98
Either way… $KLIMA is currently around $900
$36.98 is a FAR cry from $900 lol
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Thanks for sticking with me all the way down here… I’m no expert at all. I’m just a guy who saw a YouTube video, dove headfirst into the rabbit hole, and tossed nearly $100k into a few different DAOs this last weekend. But Klima has me actually excited long term. The use case + vision is there… they’re onto something. It’s really a matter of if they can execute properly.
If you have any Qs at all, I’d be happy to give you my thoughts
Cheers
