Carrot Incentive Mechanism

The key driver to ecosystem fees will be $CARROT tokens delivered from the Zero Waste Incentive mechanism built-in to the $CARROT Distribution Model where waste generators are not identified. The Zero Waste Incentive Mechanism is designed to discount rewards that would accrue to recycling participants when the recycling supply chain is not fully included, more specifically when the Waste Generator is not identified. Waste Generators play a critical role in overall systemic recycling performance because recycling is only possible when waste is sorted properly. $CARROT rewards act as an incentive for proper sorting and also to offset waste pick-up and hauling fees in Pay-As-You-Throw programs.

The fees that accrue to the Carrot Fndn’s Treasury will include the penalty, or discount, applied to payouts to Recyclers, Processors, Haulers and Bin Custodians, when Bin Custodians are identified. When Waste Generators and Bin Custodians are not identified the totality of those payouts are diverted to the Carrot Fndn. The Carrot Incentive Mechanism is designed to be fair and inclusive to all participants. Given that the great majority of recycling supply chains do not track waste through to the Waste Generator and do not use chain of custody technology, these fees shall be significant, totaling approximately 30% of total $TRC and $TCC value. The $CARROT Distribution Model will be managed by the Carrot DAO and its members, in partnership with ecosystem participants. In the case where recycling supply chains are fully identified and digitized to the Waste Generator, then the market has achieved full operational efficiency and all Participants receive 100% of their reward allocation.