Regen Network, a public blockchain developed with Cosmos SDK, has collaborated with Toucan to introduce a bridge to the Polygon network. This marks a significant step toward a flourishing, multichain regenerative finance ecosystem.
This two-way bridge enables the issuance, tokenization, and retirement of Toucan's tokenized carbon credit (TCO2) assets on Regen Network. It designates Nature Carbon Tonne (NCT) as the inaugural digital carbon token in the Cosmos ecosystem. Users with NCT balances on the Polygon network can employ the bridge to transfer NCT-eligible TCO2s to Regen Network and deposit them in on-chain carbon pools within the Osmosis decentralized exchange.
Gregory Landua, CEO and co-founder of Regen Network stated that the collaboration between Toucan and Regen Network is crucial for the success of ReFi. He noted that this initiative represents the first step in opening the flow of Web3-native carbon credits originated on Regen Network to the Polygon and Celo ReFi communities while bringing carbon liquidity into the expanding Cosmos economy.
New carbon credits are minted on Regen Network to prevent double counting. These new carbon credits maintain crucial metadata such as the credit's country of origin, vintage, or methodology. The credits are burned on the Polygon blockchain when bridging a Toucan TCO2 token from Polygon to Regen Network. When retired, the carbon credits are permanently removed from circulation and account balances, although they can still be tracked but not traded.
In February 2022, Regen Network, Toucan, and Moss. Earth introduced the NCT standard to bring nature-based carbon credits to blockchain markets. This standard addresses core challenges in the traditional carbon market, including transparency, accountability, and fragmentation, which are essential for scaling climate accounting.
NCT represents carbon tokens from nature-based projects, acting as a fungible carbon reference token linked to real-world, tokenized carbon credits. NCT tokens can be used in various Web3 protocols, DeFi applications, metaverse projects, gamified climate action, automated offsetting, and more. On the Polygon network, NCT can be traded through two pools on Sushiswap: $NCT-$USDC and $NCT-$KLIMA.
Return Protocol uses NCT for carbon offsetting and aligning incentives between individuals and climate projects, enabling effortless climate action. KlimaDAO supports NCT and several other pooled carbon tokens representing various carbon offset types throughout its Web3-powered sustainability toolset. Menthol Protocol empowers anyone to be a climate leader and jumpstart a regenerative finance ecosystem for their favorite dApps, metaverse land plots, or physical events.
Polygon Network's most significant green milestone in 2022 was the Merge. Ethereum's transition to proof of stake (PoS) consensus eliminated 60,000 tonnes of Polygon's carbon footprint, enhancing the carbon-neutral network's sustainability and pushing it toward carbon negativity, as outlined in its green manifesto.
Stefan Renton, Sustainability Manager at Polygon Labs, said that this interoperability advancement would likely result in increased usage of both NCT and Regen Network native credits within current frameworks and potential new applications. He emphasized that innovation and collaboration are industry pillars, and this increased access could lead to a more diverse array of on-chain environmental assets.
Consult the guides for Polygon-to-Regen and Regen-to-Polygon bridging to get started, and follow Polygon Labs Blog and social channels for updates on the Polygon ecosystem.
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