Token Generation Linked to Carbon Sequestration
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Solution Overview
Problem
Current carbon offset systems face challenges such as opacity in carbon removal accuracy, false claims, and double counting, while digital asset systems like Ethereum can create unlimited tokens, reducing their value.
Innovation Solution
A system and method that utilize a distributed ledger to record the sequestration of carbon dioxide, generating tokens that are verifiably linked to actual carbon sequestration, with a progressive minting schedule that increases the value of existing tokens based on cumulative sequestration, ensuring tokens are minted only for verified carbon storage.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If unlimited tokens are created in digital asset systems, then the supply of tokens increases, but the value of each token decreases
Solution Approach 1:
The patent changes the parameter of token supply from unlimited to finite by linking token creation to verified carbon sequestration metrics. Tokens are minted based on cumulative verified carbon sequestration (e.g., every 100 million tons), creating a controlled supply schedule that prevents inflation while maintaining value.
Solution Approach 2:
The system implements feedback through verified carbon sequestration data that controls token minting. The distributed ledger tracks actual carbon removal, and tokens are only created when verified sequestration milestones are achieved, creating a feedback loop that ties token supply to real-world environmental impact.
2Ease of operation
If traditional carbon offset systems are used, then carbon offsetting can occur, but transparency and credibility are reduced due to opacity in carbon removal accuracy
Solution Approach 1:
The patent introduces a distributed ledger as an intermediary that transparently records verified carbon sequestration data. This intermediary provides immutable, publicly verifiable records of carbon removal, eliminating the opacity and information loss present in traditional carbon offset systems.
Solution Approach 2:
The system makes invisible carbon sequestration data visible and verifiable through the distributed ledger, analogous to making something transparent. The ledger provides clear, traceable records of carbon removal that can be independently verified, transforming opaque processes into transparent, trackable events.
3Reliability
If carbon sequestration verification is implemented, then false claims are prevented, but system complexity increases due to verification requirements
Solution Approach 1:
The distributed ledger serves multiple functions simultaneously: it verifies carbon sequestration, tracks cumulative totals, controls token minting schedules, and provides public transparency. This multi-functionality reduces overall system complexity by consolidating verification and management tasks into a single universal platform.
Data Source
AI summary
A system configured to variably generate tokens in response to the sequestration of carbon dioxide and a corresponding method are disclosed herein.