Regen Network
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Regen Network

IBC-Compatible Ecological Tokens

High-quality nature-based digital carbon for the Interchain economy, unlocking Web3 regenerative finance and catalyzing solutions to the climate crisis.

What’s the vision behind our Basket Tokens?

Given the severity and urgency of the climate crisis, digital carbon innovation is enabling new demand sources for regenerative agriculture and land conversation projects that underpin regenerative finance, colloquially known as ReFi. Bringing carbon on-chain and architecting the green lego infrastructure of the ReFi ecosystem is central to ensuring market efficiencies serve the communities of practice that drive real-world climate impact.

The Design

When bringing ecocredits to market, for example offering them for sale on a decentralized exchange or to a potential buyer, there are a few key issues that need to be overcome:

  • A buyer may seek to purchase a large number of ecocredits without selecting which specific batches these ecocredits are sourced from
  • An ecocredit owner or seller may want to place their ecocredits into a liquidity pool, which requires very high volumes of ecocredits to be locked in liquidity (ie. more credits than may be issued from a single ecocredit batch)
  • Enable easy retail and corporate purchases at larger volumes
  • Enable greater composability in cryptocurrency/blockchain use cases, such as in DeFi for use as collateral
  • Easily interoperable with existing carbon token standards that are emerging in other cryptocurrency/blockchain projects

Baskets Module Overview

With the upgrade to Regen Ledger v3.0, the ecocredit module includes basket functionality, enabling the aggregation of heterogeneous ecosystem service credits into baskets. Ecocredits from different credit classes and batches that meet defined criteria can be deposited within a basket in exchange for basket tokens. For more information about the full functionality of basket tokens, see the basket specification.

Establishing Basket Criteria

“BasketCriteria” is a set of attributes that an ecocredit must have in order to be added to the basket. The “BasketCriteria” MVP is restricted to only allow for a list of credit classes and a recency filter, represented either as a fixed minimum batch start date, or a rolling recency window. For example, perhaps a batch start date must be within the last 6 months. Fields such as name, exponent, picking, and auto-retire options are set at instantiation and cannot be changed at a later date.

Curating Basket Criteria & Creating a Basket

The Regen wallet address that creates the basket is referred to as the basket’s curator. After instantiation, basket criteria can be updated by the basket creator. Basket creation requires a fixed fee, payable as 1000 REGEN, that goes to the Community Spend Pool.

Depositing Ecocredits into a Basket

Once instantiated, baskets allow holders of eligible ecocredits to deposit those ecocredits and in return receive a redeemable 1:1 voucher. These vouchers are known as basket tokens. Basket token holders may hold these tokens or sell them on the Osmosis exchange, an automated-market market (AMM) blockchain in the Cosmos ecosystem.

Redeeming Ecocredits from a Basket

A basket token holder may redeem their basket tokens in exchange for an equal amount of ecocredits in the basket one for one. The MVP allows for “TakeFromBasket”, for example taking an equivalent number of ecocredits from the basket. All calls of “Take” will always retrieve the oldest credits first by batch start date, ensuring the basket flushes out old ecocredits over time. This mechanism mitigates a basket’s aging, ensuring a healthy cycle of ecocredits, and facilitating freshness to the basket.

Retiring Ecocredits

An ecocredit holder has the ability to retire, transfer, or hold their ecocredits. Once ecocredits are retrieved from a given basket they may be retired by the account receiving them for offsetting carbon emissions.

What’s Next?

We are pursuing another release of the ecocredits module this spring, which allows for the release of the Regen Marketplace, an order-book decentralized exchange for the listing and exchange of ecological assets. Sellers can define, manage, mint, and sell digital carbon in the on-chain registry system. Buyers can purchase, retire, transfer, and bundle digital carbon on the blockchain. Launching late spring, the Regen Marketplace will showcase a customized portfolio of high-quality ecological assets, carbon removal and emissions reductions, from multiple carbon credit registries, including Verra, City Forest Credits, and Regen Registry.

Wrapping Up

If you would like to experiment with the basket module the latest version will be available on our stable test network REDWOOD and experimental test network HAMBACH.

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Regen Network

A blockchain network of ecological knowledge changing the economics of regenerative agriculture to reverse global warming.