A blockchain protocol that brings voluntary carbon market credits on-chain as tokens, intended to make carbon offsets tradeable and composable within decentralised finance.
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- Toucan Protocol provides infrastructure for tokenising carbon credits, allowing retired or held credits from offset registries to be represented as on-chain tokens such as pooled carbon reference tokens. The aim is to increase transparency and liquidity in voluntary carbon markets.
- By making carbon credits programmable, the protocol enables their use in decentralised finance applications and automated retirement, though the approach has drawn scrutiny over which credits are eligible and how on-chain representation maps to underlying offset quality.