There are two types of carbon-backed NFTs. The first are called “Retirement NFTs”, which are digital receipts of carbon offsets. They use the cryptographic properties of NFTs to fractionalize carbon offsets into small denominations, while ensuring that there is no double-counting.
Carbon offsets are generated in denominations of 1 tonne of CO₂ by the forestry projects and others that capture carbon from landfills, gas leaks, farming and other sources. To offset an NFT sale, you’d need to buy multiple Kg of carbon, so NFT collections are used to break 1 tonne into 1000 NFTs of 1 Kg each - and ensure that each tonne is only connected to exactly 1000 of these smaller NFTs.
These Retirement NFTs have all the data about the carbon offset, where it was produced, what year it was produced (vintage), how it was produced, how much it was sold for, and links to the Verra, Gold Standard or other registry where it’s officially tracked.
These NFTs are non-transferable, because when you retire a tonne of carbon, it’s the equivalent of using it - like eating a bushel of corn. The user who retired that carbon cannot be changed - it’s immutable.
Next, we have “Merch NFTs”. These are the NFTs that AtomicHub users receive. They ARE transferable, collectible, fun and charismatic, and are based on endangered plants and animals. Our Merch NFTs are 3D renders, sometimes animated and limited in supply, and will allow you to celebrate your environmental credentials. Each of these NFTs is connected to the Retirement NFTs that record the carbon offset.