Overview for stakeholders

Understand how the Klima Protocol’s dual-token system and vote-lock governance support carbon pricing signals, protocol coordination, and non-extractive participation.

The full protocol and app are scheduled for release in January 2026. The actions described below will become available at that time.

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.

The Klima Protocol is open infrastructure for the carbon markets, designed to improve market outcomes through transparent, rules-based mechanics.

All who interact with the protocol operate on the same terms. It charges no fees and does not retain surplus; protocol incentives are distributed according to predefined, transparent rules. No centralised entity skims spreads, takes assets, or acquires additional benefits.

Through its transparent design, and rules-based approach, Klima intends to invite market stakeholders to participate directly within the system and influence it based on their own knowledge, perspectives and needs. Doing so may make them eligible for incentives.

What stakeholders can do in Klima 2.0

kVCM - execution rates

• Execution terms: Execution rates for carbon classes (intake and retirement) are initially determined by available carbon supply and observed retirement activity within the protocol.

• Coordination via time-locked allocation: kVCM holders may time-lock their tokens and allocate them to specific carbon classes. These allocations influence the execution rates applied to those classes. For example, carbon classes with higher kVCM allocations require more kVCM units per tonne to execute retirement, relative to other classes.

• Lock mechanics: Users select a fixed lock duration when time-locking kVCM.

  • The lock duration cannot be changed once set.

  • Allocations across carbon classes may be updated during the lock period.

• Protocol incentives: kVCM holders who participate in coordination may be eligible for protocol-defined incentives, determined autonomously by predefined rules.

K2 - capacity rates

• Capacity modulation: Whilst execution rates are influenced by carbon supply, observed retirement activity, and kVCM allocations, K2 allocations influence how much carbon activity a given class can absorb before its execution rate materially changes.

• Effect of allocation: Carbon classes with higher K2 allocations can accommodate larger volumes of supply or retirement at prevailing execution terms, relative to classes with lower K2 allocations.

• Lock mechanics: K2 tokens are subject to a rolling 24-hour lock period.

  • During this period, allocations may be adjusted.

  • Tokens become available once the lock expires.

• Protocol incentives: K2 holders who participate in coordination may be eligible for protocol-defined incentives, determined autonomously by predefined rules.

More information regarding token distributions are available here.

Incentives sumamry

Klima distributes protocol incentives to participants who provide defined services to the ecosystem, such as liquidity provision or governance signalling, according to transparent, rules-based mechanisms.

Function	Commitment	Incentives
Time-lock kVCM	Until maturity. 90 day increments.	Variable incentive accrual, calculated daily according to protocol rules.
User-lock K2	48 hours.	Variable incentive distribution, calculated daily.
Stake liquidity	Until maturity. 90 day increments.	Variable incentive distribution, calculated daily.