Historic and Future Minting Emissions Offset - Request for Comment

Introduction

KlimaDAO proposes the DAO offset 1,000 tCO2 of on-chain carbon to remove NounsDAO’s historic and future Ethereum carbon footprint, and to amplify NounsDAO’s climate impact messages with a dedicated media partnership.

Offsetting the 1,000 tCO2 footprint from this project will cost approximately $1,100 to $1,700 USD or Ξ0.82-1.27 based on current market rates.

Motivation

Using Kyle McDonald’s emissions estimates, the Ethereum network has a carbon footprint of roughly ~18.1M tonnes. Now that the merge has taken place, Ethereum’s footprint looking forward is minimal. However, it’s important for the community as a whole to effectively quantify and take action for historical emissions. Doing so is a win for Ethereum, but also helps push investment and ideation into the growing ReFi (regenerative finance) ecosystem.

The good news is that taking action on historic emissions is possible in a web3-native way, thanks to KlimaDAO’s development of DeFi rails for climate finance. The KlimaDAO team has developed expertise and unique technology to make the process of addressing historical emissions achievable for communities such as NounsDAO.

Methodology

To measure the carbon emissions of NounsDAO we have implemented the comprehensive emissions model developed by Kyle McDonald in the research paper: Ethereum Emissions: A Bottom-up Estimate which maps network energy usage to emissions factors.

We then use carbon.fyi which is a tool that applies this methodology to calculate the emissions of defined contracts based on gas usage within specific blocks.

Scope

Known NounsDAO Ethereum contracts with carbon emissions quantified from carbon.fyi calculated on December 14th, 2022 (post merge). The total emissions from the NounsDAO contracts came out at 201.97 tCO2. KlimaDAO proposes to offset approximately five times emissions to date to ensure that NounsDAO maintains carbon neutrality for the foreseeable future.

Contract Name Contract Address CO2 (Tonnes)
NounsToken 0x9C8fF314C9Bc7F6e59A9d9225Fb22946427eDC03 0.04
NounsSeeder 0xCC8a0FB5ab3C7132c1b2A0109142Fb112c4Ce515 0.10
NounsDescriptor 0x0Cfdb3Ba1694c2bb2CFACB0339ad7b1Ae5932B63 0.22
NFTDescriptor 0x0BBAd8c947210ab6284699605ce2a61780958264 0.32
NounsAuctionHouse 0xF15a943787014461d94da08aD4040f79Cd7c124e 0.32
NounsNounsAuctionHouseProxy 0x830BD73E4184ceF73443C15111a1DF14e495C706 0.58
NounsAuctionHouseProxyAdmin 0xC1C119932d78aB9080862C5fcb964029f086401e 10.44
NounsDAOExecutor 0x0BC3807Ec262cB779b38D65b38158acC3bfedE10 14.70
NounsDAOProxy 0x6f3E6272A167e8AcCb32072d08E0957F9c79223d 72.32
NounsDAOLogicV1 0xa43aFE317985726E4e194eb061Af77fbCb43F944 102.93
Total 201.97

Alternative Projects

Below are a number of projects of note, KlimaDAO can also help identify additional projects for consideration within tokenized carbon pools (BCT - Base Carbon Tonne, MCO2 - Moss, NCT - Nature Carbon Tonne).

Project name Description Selective Retirement Address
Chao’er (BCT) The Inner Mongolia Chao’er Forest projects the once logging forest. The project is implemented in three forest farms under the jurisdiction of the Project owner, namely Dacongshan Forest Farm, Quansheng Forest Farm, and Taerqi Forest Farm. 0x6362364a37f34d39a1f4993fb595dab4116daf0d
Agrocortex (MCO2) The primary objective of the Agrocortex REDD+ Project is to avoid the unplanned deforestation (AUD) of the 186,219 ha project area, consisting of 100% Amazon rainforest. Over the next 30 years, this project will help reduce over 14 million tonnes of CO2 from entering the atmosphere. NA
Pacajai (NCT) The objective of the Pacajai REDD+ Project is to protect nearly 166,000 hectares of biodiverse forest in the state of Pará in Brazil. The project is both VCS and Climate, Community & Biodiversity certified. 0x65d96f0d45606016e30c97ee039775de9722a7d2
Rimba Raya (NCT) Located in Borneo’s southeast and stretching for almost 100 kilometers from North to South along the borders of the Tanjung Puting National Park, the Rimba Raya Reserve covers around 64,000 hectares. The project area is home to an array of endangered species, including the endangered Bornean Orangutan. Rimba Raya is certified under Verra’s carbon standard as well as its Climate, Community & Biodiversity standard. 0x62896f42cf1371b268db56e50d67c34f3eb1ad7a

Alternative project and costs

Below are two alternatives to give indicative pricing impacts compared to our recommended approach. As at Nov 22 2022:

Project Type Tonnes (CO2) Retirement Cost (USD) Retirement cost (ETH)
Gujarat Renewable Energy 1,000 ~$ 1,711.00 ~Ξ 1.28
Rimba Raya Nature Based 1,000 ~$ 1845.14 ~Ξ 1.38

Offsetting and trade execution

To offset the tCO2 footprint of NounsDAO the Klima Infinity portal can be used which supports selective retirement by project address. A representative of KlimaDAO can demonstrate specifics of how the tool can be used. Note also that tokens on the Polygon (MATIC) network will be required to purchase the offsets via the BCT and NCT pools using SushiSwap.

Case Study

As an example of previous partnerships, Polygon worked with KlimaDAO and retired $400,000 of carbon credits representing the entirety of the network’s CO2 debt since inception. Going forward Polygon will continue to build upon its Green Manifesto and become carbon negative.

Achieving carbon neutrality was critical in Polygon securing key partnerships with notable brands including Starbucks and Meta whose mainstream users’ concerns were addressed by the action they took on climate change.

You can take a deeper look at projects that have used KlimaDAO to offset carbon emissions transparently through our pledge dashboard.

Closing

KlimaDAO is looking forward to feedback from the NounsDAO community on this proposal and ways that we can partner together on tackling historical emissions. We appreciate Offsetra’s carbon.fyi for their work in developing a methodology for on-chain calculations and the countless stakeholders who have refined it over the past year.

Furthermore, KlimaDAO hopes to create a deeper partnership with NounsDAO for their future endeavors through being a primary point of contact for on-chain, decentralized climate solutions.

Thank you for your consideration.

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