KlimaDao

**Base network now accepts additional carbon retirement assets** through Aerodrome Finance, expanding cross-chain compatibility. The platform now supports: - Native Aerodrome Finance tokens - Solana-based assets (cbBTC) - Ethereum-wrapped assets (WETH) This integration allows users to retire carbon credits using assets from multiple blockchains, streamlining the process for climate-conscious crypto holders. The move follows Aerodrome's track record of attracting protocol-owned liquidity on Base, where projects can earn AERO rewards while maintaining deep liquidity pools. **Key benefit**: Users can now offset their carbon footprint using their preferred blockchain assets without complex bridging steps. The expansion demonstrates growing infrastructure for on-chain environmental impact, making carbon retirement more accessible across the crypto ecosystem.

Klima Protocol has activated its native incentive system, rewarding participants who build the infrastructure for its automated carbon credit marketplace. **Who Gets Rewarded:** - Liquidity providers on kVCM trading pairs - Token lockers who vote on carbon credit classes **How It Works:** - Rates adjust automatically based on lock duration - Incentives are programmatic and variable - Designed to scale the protocol's infrastructure The incentives target two key groups: those providing liquidity so users can easily trade between kVCM and USDC, and those locking tokens to signal preferences for different carbon credit types (forestry, carbon capture, etc.). This builds on Klima's automated carbon marketplace where companies can supply or retire carbon credits through transparent, blockchain-based rules rather than opaque traditional markets.

Klima 2.0 outlines five distinct participant categories for its carbon market infrastructure: **Carbon suppliers** (project developers and traders) receive a predictable, rules-based route to market with clear execution terms and no opaque spreads. **Carbon buyers** access verified retirements with transparent pricing. Credits cannot be resold—retirement is permanent, ensuring environmental claims remain auditable. **Coordinators** (kVCM and K2 participants) signal preferences that shape execution conditions within fixed bounds, enabling distributed decision-making without centralized control. **Liquidity providers** maintain continuous protocol access through open markets, ensuring reliable entry and exit without embedding carbon in automated market makers. **Builders and integrators** can develop against open-source smart contracts and APIs to embed carbon functionality into workflows. All groups operate under identical rules. The system aims to coordinate different interests without collapsing them into a single financial abstraction.

**Klima Foundation announces strategic partnership with Regen Network** through the Klima Partnership Program to advance digital carbon market infrastructure. **Key developments:** - New carbon class launching on Klima platform featuring City Forest Credits - Regen Network brings blockchain-based ecological verification expertise - Partnership focuses on digital MRV, registry interoperability, and carbon asset innovation **Technical integration includes:** - Seamless data integrations for cross-chain retirement and tracking - Advanced standards for on-chain issuance and transfers - Enhanced access to high-quality urban forest credits The collaboration combines Regen's technical capabilities with City Forest Credits' high-impact credits to create **scalable, transparent climate finance tools**. This partnership represents a significant step toward building trusted digital infrastructure for carbon markets.

A landmark transaction saw **over 31,000 metric tons of City Forest Credits (CFC) sold for more than $1 million**, with prices ranging from **$34-45 per ton**. This pricing significantly exceeds average voluntary carbon market rates, demonstrating strong demand for urban nature-based climate solutions. **Key highlights:** - City Forest Credits focuses on urban tree planting and preservation - Credits deliver verifiable carbon removals plus co-benefits - Additional benefits include improved air quality, reduced stormwater runoff, and energy savings - Solutions directly impact 80% of Americans living in urban areas The transaction showcases the **immense potential of urban forestry** for both climate impact and community benefits, setting new benchmarks for nature-based carbon credit pricing.

**City Forest Credits** launches as a nonprofit carbon registry establishing national standards for greenhouse gas reductions through urban tree planting and preservation across U.S. metropolitan areas. **Key Features:** - ICROA-endorsed registry based on rigorous urban forestry science - Delivers verifiable carbon removals with measurable co-benefits - Targets 80% of Americans living in urban settings **Additional Benefits:** - Enhanced air quality in cities - Reduced stormwater runoff - Energy savings for residents - Greater social equity outcomes The initiative addresses climate change while improving urban living conditions through scientifically-backed tree preservation and planting programs.

**Single staking for $kVCM is now active** on HydrexFi following the recent epoch flip. Users can participate by visiting [hydrex.fi](http://hydrex.fi) to access the new staking functionality. **Key partnership benefits:** - Automated yield-generating liquidity strategies - Enhanced $kVCM liquidity markets - ve tokenomics integration The collaboration aims to strengthen liquidity through HydrexFi's specialized DeFi infrastructure. For detailed information about the platform and staking mechanics, users can review the documentation at [docs.hydrex.fi](http://docs.hydrex.fi).

**Klima has fully committed its veAERO voting power to kVCM pools on Aerodrome Finance.** The allocation breakdown: - **USDC/kVCM pool**: 3.3 million votes - **USDC/WETH pool**: 1.9 million votes This represents a **complete shift** from the previous 50/50 split between WETH and USDC pools announced in October. **Strategic transition underway** as Klima continues moving toward the USDC pool in preparation for **Klima 2.0's Protocol deployment** scheduled for winter. The move signals Klima's focus on stablecoin liquidity as it approaches its next major protocol upgrade. [View kVCM pools on Aerodrome](https://aerodrome.finance/liquidity?query=kvcm)

**Carbon markets reached $100 billion in 2024**, funding critical climate projects worldwide. These markets bridge financing gaps for emerging economies, potentially doubling global climate ambition by 2035. **Real-world impact examples:** - Indonesia's Katingan Peatland Project: 149,800 hectares restored, 7.5M tons CO2 avoided yearly - Myanmar mangrove restoration: 15km coastline strengthened, 45K tons CO2 captured annually - Timor Leste forestry: 100K+ trees planted, 150+ jobs created **Current market challenges:** - Opaque trading dominated by over-the-counter transactions - High intermediary fees reducing project funding - Fragmented liquidity across siloed infrastructure **Blockchain solutions** like KlimaDAO aim to address these issues by moving carbon trading onchain, improving transparency, and scaling capital flow to climate projects.

**Klima 2.0** launches tonight on Aerodrome, introducing fee-free carbon market infrastructure after years of development. **Current carbon market problems:** - Transaction costs exceed 100% of trade value - Broken trading infrastructure kills market confidence - Hidden markups reduce efficiency **Klima 2.0 solutions:** - End-to-end carbon market technology - Transparent pricing with zero extractive fees - Community-driven governance for portfolio curation - Seamless credit integration and retirement process **Two-token system:** - **$kVCM**: Risk-balanced portfolio ownership token that mints when acquiring carbon, burns during retirement - **$K2**: Fixed-supply governance token that shapes pricing and earns protocol incentives The protocol operates autonomously through algorithms and token inputs, adapting to carbon market changes. All financial value flows to token holders through incentives. **Key features:** - Auditable and community-driven - No VCs or insider allocations - Built specifically for carbon market complexity - Transparent pricing at all times Klima aims to create a lasting operating system for carbon markets, anchored in real-world credits and governed by users. [Learn more](http://klimaprotocol.com)