Token Distribution

The Klima Protocol uses two native tokens and onchain carbon tokens to operate its infrastructure.

Summary

kVCM

• Floating supply (starting at 20 million), expanding and contracting as carbon is acquired or retired.

• Serves as the medium of exchange for all carbon trades with the Protocol.

• Can be locked to influence carbon class execution rates.

K2

• Fixed supply of 100 million, distributed programmatically as incentives.

• Can be locked to vote on carbon class capacity.

Carbon tokens

• Tokenised representations of specific carbon credits.

• Grouped into carbon classes for efficient pricing and allocation.

• Acquired by the protocol and retired when users redeem certificates.

Shared mechanics

• All carbon is priced and executed in kVCM terms only only.

• Participants can engage with, or withdraw from the ecosystem, via the kVCM<>USD liquidity pool 24/7.

• Vote-locked kVCM, user-locked K2, and liquidity providers may receive protocol incentives in accordance with pre-defined rules.

Initial State

kVCM

• Initial kVCM token distribution: 20 million.

• Floating supply.

Cohort	Proportion	Quantity (M)	Note
KLIMA Holders (Fair Launch participants)	77.5%	15.5	Via Fair Launch claim function
Latecomers migration contract (KLIMA holders)	10%	2	To enable remaining KLIMA conversion to be converted at a reduced rate
DAO / Treasury	10%	2	For liquidity & future carbon allocation needs.
01X Consulting FZE (“01X”) -	2.5%	0.5	Per contractual agreement, compensation for model development.

K2

• Initial K2 token distribution: 7 million.

• Final distribution: 100 million.

• Fixed supply.

Cohort	Proportion	Quantity (M)	Note
DAO / Treasury	4.5%	4.5	For kVCM/K2 LP, or held in reserve.
01X	2.5%	2.5	24 month lock providing LP in kVCM/K2
Reserve for Protocol Launch	93%	93	Minted and held in reserve for protocol launch. See table below.
Fair Launch Participants	40%	40	Allocated proportionally against accrued points. Claimable over 48 month vesting period
Ecosystem Grant Reserve	%	5	TBD
Programmatic Incentives	40%	40	Incentive Curve (See white paper)
pKlima Holders	3%	3	48 month vesting period
Product Development Fund	5%	5	TBD