Updated: Jul 18
Flowcarbon has been obliged to cease operations and the introduction of new products due to the present bad market in cryptocurrencies.
According to CEO and co-founder Dana Gibber, the startup that saves carbon credits on the blockchain is waiting for the cryptocurrency market to normalize.
Last month in June, Flowcarbon had planned to introduce a new token, but Gibber claimed that the idea has now been put on hold indefinitely.
Following Verra's revelation that carbon credits on its registry could not be utilized to create new tokens because of uncertainty over how the tokens would be issued, Toucan and KlimaDAO have declared a suspension of new activity. It is researching fresh token-making techniques.
KlimaDAO and Toucan are anticipating Verra's research's findings. As they wait for the crypto winter to end, they have battened down the hatches.
When businesses purchase carbon credits from Flowcarbon, the company issues tokens that can be burned at a later time to retire the credits.
In the past, carbon credits have been used to counteract the pollution that large corporations release into the atmosphere. When a business wants to offset its carbon footprint, a project developer will raise money by selling carbon tokens to that business.
One metric ton of carbon dioxide that will be eliminated or kept out of the atmosphere is represented by one carbon credit.
When a business decides to retire a credit, permanently removing it from the market, the carbon credit grants the opportunity to claim an offset.
Price pressure from increased demand on a market with limited supply leads to higher credit costs. In the end, this means more revenue for projects, allowing them to consider expanding and project developers to increase supply.
Projects with already-purchased carbon credits may deposit those credits in Flowcarbon's database-type registry account. Every carbon credit is replicated exactly into GC02 tokens that belong to the organization that held the carbon credits.
The business puts them into a "bundle" of carbon credits that meet the same predetermined conditions, known as the "Goddess of Nature" smart contract.
Then, for each GC02 token, the firm receives one Goddess of Nature token. One carbon credit at the register is retired along with a GNT token.