Specification
by p1r0
4 min read
The DECA 2.0 Proposal
DECA is designing a decentralized crypto climate fund protocol collateralized by carbon credits and a cryptographic algorithm to reduce the climate change finance gap.
The climate fund will be community based and managed by a Decentralized Autonomous Organization (DAO) which aims to finance projects with social and environmental impact using different mechanisms. This includes mainly a carbon credit bridge, minting and redeeming, and a project finance. The protocol makes use of two different tokens and carbon credits, DECA 2.0 which is pegged to a certain degree to the carbon credit value measured in co2 and a tco2 token which represents the quantity of carbon credits integrated into the DECA Ecosystem. The carbon credits are used as collateral and support the DECA ecosystem.
The DECA ecosystems aims to increase transparency and decentralization in the project selection and funding, reducing the finance gap and costs (interest payments) by allocating the funds into the right projects and giving the DAO members a token based con carbon credit as reward for participation. DECA´s solution is focused on redirecting money flows to high impact projects selected by the community members, thus increasing the capital market access for project developers, using as collateral carbon credits owned and in future generated. On the other hand, project investors (community members) are rewarded by DECAs and stabilize the whole ecosystem.
THE DECA ECOSYSTEM PARTNERS AND ACTORS:
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Decentralized Climate Foundation as project supervisor and current DECA Token smart contract owneri.
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Neetsec International Inc. as software development company who develop the the DECA first versio.
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Innovative Hydrogen Solutions as DECA project supporter and strategic advisor.
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DECA community members which are DECA Holders that will participate in the DAO and support financially high impact projects in future.
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DAO, a decentralized autonomous organization which will be separated into two groups, technical and general, where DECA Holders can vote for and against certain carbon credits, project proposals, etc.
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Project Developers, companies and institutions which need finance for their social and environmental project.
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Offsetter: Any individual or corporation which is interested in migrating carbon credit into DECA.Green through the bridge.
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Centralized Backlog: Governmental or Non-Governmental Institutions which own a centralized carbon credit registry platform.
The DECA Ecosystem Technology:
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DECA Green (OrbitDB), the decentralized carbon credit registry based on OrbitDB in which the validated carbon credits will be recorded.
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TCO2 token (CCToken), a fungible, burnable token with unlimited supply (inflationary) which will represent the carbon credits in the ecosystem equivalent to 1 tco2e.
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DECA Token, ERC20 Token initially created on the DECA, backed by carbon credits since the first day with a total token supply of 17.768,45.
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DECA2, Mintable token with a deflationary design based on a tokenomics module that measures its parity with TCO2 Token (CCToken at diagrams), the purpose is to be collateral and usable for the DAO (Analogy from makerDAO to DAI Model).
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ERC1155: Standard for creating fungible and non-fungible tokens such as DECA2, TCO2token and DECA NFTs that includes some features such as burning and measurement of TCO2Token Minting/Burning attached to an NFT.
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DECA NFTs: Used as a unique registry, that links to Project Owners, or Offsetters public information. It has also properties like counting the minted or burned TCO2 Tokens as proofs for their measured footprint reduction.
Liquidity Pool , in which the tco2 tokens will be integrated in order to mint DECA2. Where the DAO and DECA/CCtoken holders provide liquidity for exchange between DECA and CCtoken and earns a %fee per transaction, we can also integrate to other tokens to pair DECA Ecosystem.
Lending DeFi , Where the DECA Project Finance Process borrows DECA and CCTokens to the project owners. Lenders can be the DAO, DECA or CCToken Holders. %fee is getting by lending and %pays for borrowing.
Tokenomics Module: Required by the ERC1155 and the DAO order to keep the deflationary model for DECA paired to TCO2 (CCToken) with inflationary properties.
Use Cases
Use Case 1: The DECA Minting/Mining
The first usage (Appendix 1) gives the opportunity to individuals to migrate validated carbon credits from a centralized system, such as Gold Standard, to the DECA.Green decentralized system based on OrbitDB through a bridge. By doing this, TCO2 tokens will be minted which can be send to a liquidity pool which mints DECA2.
Img 1. Shows the Minting Sequence Model. Source
Img 2. Shows the Minting Use Case Model. Source
Use Case 2: DECA Project Finance
The second usage (Appendix 2) gives the opportunity to project developers to get easier access to project finance through DECA Tokens at a lower market cost and an decentralized process. Generally, the project developer requests financing which initiates the process where the technical DAO validates the project, if accepted loan conditions will be determined and equivalent number of DECAs created. The project developer has to put a collateral which can be carbon credits according to a loan ratio which will be determined for each project according to the DAO policies. After putting the collateral, the project developer has access to initial funding and further funding needs will be released gradually depending on project phase. At each phase, the technical DAO has to validate the information and vote.
Img 3. Shows the Project Finance Sequence Model. Source
Img 4. Shows the Project Finance Use Case Model. Source
Other Use Cases
Governance: The decentralized crypto climate fund relies on its native token DECA (2.0) for several uses: voting, staking and minting of the DECA Tokens. The DECA token gives the holder voting rights in the DAO to establish or adjust certain rules regarding, DAO management as well as project selection and funding.
Supporters Use Cases:
Maxcoin Green Proof of work and Green Energy Proofs.
LICENSE
Copyright (C) 2025 DECENTRALIZED CLIMATE FOUNDATION A.C. Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled "GNU Free Documentation License".