$CO2 (Fractionalized Carbon Credits)
Last updated
Last updated
Credit Owner Initiation: The credit owner initiates the process by submitting a request to Aurica to tokenize their carbon credits. Aurica is responsible for validating this request with the respective registering bodies to confirm its authenticity and ensure that it complies with established environmental standards.
Validation by Aurica: Upon receipt of the tokenization request, Aurica confirms that the information provided by the credit owner aligns with the details registered with the appropriate environmental body, maintaining the accuracy and legitimacy of the credits.
Ownership Transfer to SPV: Once validated, the ownership of the batch of carbon credits is transferred to a bankruptcy-remote Special Purpose Vehicle (SPV). Managed by an independent third-party custodian, the SPV guarantees that the physical credits are precisely matched to their digital counterparts, ensuring the integrity of the tokenization process.
Offchain Process
a. Project Token Minting: Aurica mints a new project token for each verified batch of carbon credits. The smart contract associated with these tokens stores comprehensive details such as the project's name, symbol, methodology, type, and vintage year.
b. Auditing Information Inclusion: The smart contract includes the checksum of a Universally Unique Identifier (UUID) corresponding to the batch of credits, which serves as a critical component for auditing and ensuring transparency.
Initial Token Allocation to Aurica Wallet: Following the minting and smart contract creation, the tokens are initially allocated to the Aurica Distribution Wallet. This marks the first stage of the digital representation of the physical credits within the Aurica ecosystem.
Distribution to Credit Owner's Wallet: In the final step, the $CO2 tokens are distributed from the Aurica Distribution Wallet to the original credit owner’s wallet. This transfer completes the process, symbolizing the full transition of carbon credits from their traditional form into a tokenized, blockchain-based asset, ready for participation in the digital economy.
Redemption Request: The token holder submits a request to Aurica to redeem their credits. This is the first step in converting digital tokens back into actual carbon credits.
Token Approval and Burn: If the request is approved, the corresponding tokens are sent to Aurica, where they are then burned. This burning process is critical for removing the tokens from circulation and maintaining the integrity of the token supply.
Account Verification by Aurica: Aurica verifies that the entity requesting the redemption has an account with the registration body associated with the project token. This step ensures that only eligible entities can redeem tokens for carbon credits.
Credit Allocation by SPV: The bankruptcy-remote Special Purpose Vehicle (SPV) sends the equivalent carbon credits to the requesting entity’s account. This transfer signifies the successful exchange of digital tokens for actual carbon credits, completing the redemption cycle.
Aurica's two-way bridge for carbon credits is more than just a technical innovation; it's a commitment to environmental stewardship through blockchain technology. By fractionalizing carbon credits and meticulously managing the tokenization and redemption processes, Aurica empowers individuals and organizations to partake in the global mission of carbon neutrality with unprecedented accessibility and impact.
