Carrot White Paper
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  • CARROT NETWORK
  • documentation
    • Introduction
      • Recycling Systems Are Broken
      • Earth Limitations
      • From Linear to Circular
      • What is Zero Waste?
      • Extended Producer Responsibility
      • Carbon Markets: From Problem to Solution
      • Greenwash & ESG
      • Solution
    • The Product
      • Carrot Network
        • Creating Value
        • dMRV
        • Creating a Market
        • Demand-Side Market
        • Atomic Network
        • Methodology Creators
        • Ownership
        • Summary Diagram
      • Recycling Supply Chain
        • Reaching the Source of Waste Creation
        • Participants
        • Validators & SOs
        • Local vs Long Hauling
      • MassIDs: Codifying Waste
        • Participant Categories and Wallets
        • MassID Composition
        • MassID Notation
        • MassID Creation
        • MassID Splits
        • Waste Validation & Audits
        • Proof-of-Authority
        • Proof-of-Work & Provenance
      • Recycling Tokens
        • Minting TRCs
        • TCC (Carbon Credits)
          • GasID Creation
          • GasID Notation
          • Minting TCCs
          • Calculating GasIDs
          • GasIDs from Composting
          • TCCs from Composting
        • Carrot Registry (EPR/ESG)
        • $CARROT Distribution Model
          • Waste Source Not Identified
        • Carbon Credit Tokens from Composting
      • Tokenomics
        • Supply and Demand
        • AMM & LPs
        • $CARROT Stablecoins/Fiat
        • Burn-As-A-Service
        • Lending & Forwards
        • Carrot Ecosystem Fees
        • Carrot Incentive Mechanism
        • Tokenomics Conclusion
      • Value Proposition
        • Network Integrators
        • Producers (Credit Buyers)
        • Recyclers, Haulers & Processors
        • Waste Generators
        • Bin Custodians
        • State and Federal
        • Municipalities
        • Fund Managers
        • NGOs & Donors
        • Partners
        • External Service Providers (ESPs)
      • Closing the Loop
        • Proof-of-Recycled-Content
        • Product Composition
        • Local Recyclability
      • Product Roadmap
        • Product Decentralization
        • Protocol Selection
    • Governance
      • Carrot DAO
        • $CARROT Token Governance
        • Carrot Improvement Proposal Process
        • Carrot DAO Maintenance and Processes
        • Carrot Retroactive Funding
      • Progressive Decentralization
        • Incentives for Participation
        • 3 Phases of Decentralization
      • Security
        • Community Values
        • Community Guidelines
        • Holder Reputational System
    • The Carrot Foundation
      • Mission
      • Goals
      • Vision
      • $CARROT Allocation
      • $CARROT Supply
      • Treasury Reserve
      • Wallet Onboarding
      • The Genesis Team
      • Community Fund
      • Launch Strategy
      • NFT Auctions w/ Options
      • Stewards & Board
      • Advisors
      • Founders
    • Conclusion
      • Acknowledgements
    • Appendix
      • Formula comparison Between TRCs And TCCs
      • Formula for Project and Leakage Emissions From Composting
      • Formula For Baseline Emissions of CO2
      • CWIP Process (Extended)
      • Generating Reputational Metrics
      • Applying Reputational Metrics
      • Holder Reputational System Token Implementation
  • Carrot Methodologies
    • Glossary
    • Rewards Distribution Policy
    • BOLD Recycling Credit
    • BOLD Carbon (CH4)
  • More
    • Terms & Conditions
      • T&C of Use
      • T&C for Sales and Purchases of TRCs and TCCs
    • Download White Paper
  • Connect With Us
    • Website
    • Discord
    • E-mail Carrot Team
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Tokenomics

PreviousCarbon Credit Tokens from CompostingNextSupply and Demand

Last updated 1 year ago

$CARROT is a multi-stakeholder network where environmental value is created by recycling contributors working together to divert “waste” from landfills, incinerators and the environment, and instead send these rich resources to recycling and composting facilities. The environmental value is captured through proof-of-physical-work, proof-of-provenance and certified-recycling (recorded in MassIDs), and tokenized into Recycling Credits (TRCs) and Carbon Credits (TCCs) which in turn are sold to companies needing to offset their negative externalities, in other words, their waste and carbon footprints. (As noted extensively throughout this White Paper, waste and carbon disclosure requirements are inevitable and long overdue. We understand that some of the cost to Producers will be passed onto consumers in the short-term and see this as an unavoidable part of the transition. In time, however, as infrastructure and investment are put in place the marginal costs should trend to zero, and then beyond, producing significant savings as most of the current costs are removed from the system.)

TRCs and TCCs in essence provide price discovery on the value of recycling each material waste type and offsetting both waste and carbon on a per ton basis. Price discovery can galvanize the world to ensure that markets are operating efficiently, waste actually gets recycled and that we are all moving together toward a Zero Waste world.

$CARROT distribution from the sale of TRCs and TCCs to recyclers efficiently allocates capital to the participants in the recycling economy, providing an important new revenue stream that can be used to reinvest in the equipment and technologies that are needed to improve recycling rates. The direct distribution of the value generated to each participant, free from intermediaries and in accordance with each participant's contribution, changes the entire dynamic of the market and opens the door for greater participation and competition thanks to the incentive mechanism designed into (which, can be adjusted by the Carrot DAO community to optimize recycling performance to each locality).

The following diagram shows the Carrot Fndn's Token Economy design, combining (in blue), (in green) and $CARROT (in orange). For more detail on the value delivered to each stakeholder see section on

Figure 40: $CARROT Token design and Participant Touchpoints

Recycling is a key component to a sustainable global economy and its value can be captured consistently and indefinitely.

$CARROT Distribution
MassIDs
TRCs/TCCs
value proposition.