Protocol Implementation & Upgrade Transparency

This document explains how the protocol’s software implementation is maintained, upgraded, and secured over time.

1. Core Economic Operation

The core economic behaviour of the Klima Protocol, including execution logic, carbon intake conditions, retirement functionality, and incentive distribution, is governed by deterministic smart contracts and participant inputs.

Day-to-day protocol operation does not involve discretionary decision-making over:

• individual transaction execution,

• execution rates,

• allocation of carbon assets, or

• distribution of protocol-defined incentives.

All participants interact with the same predefined rule set under equivalent conditions.

2. Implementation Controls

The current implementation includes administrative and upgrade mechanisms.

These mechanisms exist for technical and security purposes, including:

• addressing software vulnerabilities,

• migrating or upgrading contracts where necessary,

• improving technical reliability, security, or operational resilience

• maintaining compatibility with evolving technical standards.

Administrative controls are not used to manage individual user positions, selectively alter execution outcomes, or provide preferential economic treatment.

3. Upgrade Principles

If upgrades or migrations occur:

• Changes will be publicly disclosed in advance where practicable.

• Modifications will apply uniformly to all participants.

• Historical transactions and completed retirements will not be retroactively altered.

Upgrades relate to software implementation, system integrity, and long-term sustainability. They do not constitute discretionary portfolio management or asset management on behalf of participants.

4. Experimental Infrastructure

The Klima Protocol is experimental infrastructure operating within an evolving technological and regulatory landscape, and market context.

Upgradeability is a feature of responsible system development and risk management. While the implementation may evolve, economic outcomes continue to arise from predefined rules and participant interaction rather than active asset management or engineered financial returns.

Participants should understand that interacting with the protocol involves engagement with evolving open-source software infrastructure.