Overview for Stakeholders
Understand how Klima’s dual-token coordination model contributes to carbon execution parameters, protocol stability, and non-extractive participation.
Participation in the Klima Protocol does not confer ownership, profit rights, redemption rights, or claims on protocol-held carbon. Governance signals influence protocol parameters but do not create obligations, guarantees, or entitlements for participants.
Introduction
The Klima Protocol is open infrastructure for carbon markets, designed to support transparent, rules-based execution.
All participants interact under the same protocol rules. The protocol does not charge discretionary fees or retain surplus. Incentives, where applicable, are distributed according to predefined and transparent mechanisms. No entity controls spreads, allocates preferential access, or extracts value.
Through this structure, market participants may contribute coordination signals based on their own knowledge and perspectives. Participation in defined activities may make them eligible for protocol-native incentives.
Activities
kVCM — Execution Parameters
Execution terms: Execution rates for carbon classes (intake and retirement) are derived from observable carbon supply and retirement activity within the protocol.
Coordination via time-locked allocation: kVCM holders may time-lock tokens and allocate them across carbon classes. These allocations contribute to the execution parameters applied to those classes. Carbon classes with relatively higher kVCM allocations will require comparatively more kVCM units per tonne for retirement execution than classes with lower allocations.
Lock mechanics:
Lock duration is selected at initiation (90-day increments).
Duration cannot be modified once set.
Carbon class allocations may be updated during the lock period.
Protocol incentives: Participants who engage in coordination via time-locking may become eligible for protocol-defined incentives, calculated autonomously according to predefined rules.
K2 — Capacity Parameters
Capacity modulation: Execution rates are influenced by supply, retirement activity, and kVCM allocations. K2 allocations contribute to how much carbon activity a given class can process before its execution parameters adjust.
Effect of allocation: Carbon classes with relatively higher K2 allocations can accommodate greater supply or retirement volume at prevailing execution terms compared to classes with lower allocations.
Lock mechanics:
K2 allocations are subject to a rolling 24-hour lock.
Allocations may be adjusted during this period.
Tokens become available once the lock expires.
Protocol incentives: K2 participants who contribute coordination signals may be eligible for protocol-defined incentives, calculated autonomously according to predefined rules.
More information regarding token distributions are available here.
Summary
Klima distributes protocol incentives to participants who contribute defined services to the ecosystem, such as liquidity provision or coordination signalling, according to transparent, deterministic rules.
Time-lock kVCM
Fixed duration (90-day increments.)
Variable incentive calculation, updated daily
User-lock K2
Rolling 24 hours.
Variable incentive distribution, calculated daily.
Stake liquidity
Fixed duration (90-day increments.)
Variable incentive distribution, calculated daily.
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