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The Carrot Foundation (Carrot Fndn) takes a systems approach to transitioning the linear waste economy to a circular zero waste economy. The “$CARROT ecosystem” uses digital assets to track waste responsibility across recycling supply chains, mints Recycling and Carbon credits in the form of tokens and returns $USDC as rewards to recycling contributors. The Carrot Fndn uses blockchain, smart contracts and Web3 derivative solutions in combination to build an open decentralized network of contributors working together to develop the infrastructure of the circular, zero waste, low-carbon economy.
Waste codification into digital assets (MassIDs) and tracking of waste mass ownership from source to recycling (Proof-of-Provenance) enables the Carrot Fndn to identify verifiable contributions from individual users. Updated records to MassIDs within logistics service orders tied to each individual in a chain of custody line provides the proof that an environmental contribution was made in the real world (Proof-of-Physical-Work) and serves as the asset to back corporate waste offsetting, verifiable on a public blockchain. This process then makes purchasing and burning Tokenized Recycling Credits (TRCs) a solid offset mechanism, bringing value to their buyers and payment to their creators/contributors.
Carrot Auditors working on behalf of the Carrot DAO will be able to certify credits and use smart contracts to mint TRCs by material type for recycling credits (1 Ton of a material X) and for Tokenized Carbon Credits (TCCs) corresponding to the greenhouse gas emissions avoided (1 Ton of CO2e). Generation of TRCs to the Carrot Foundation (Carrot Fndn) will trigger the distribution of $USDC, based on the current sale price of each specific TRC to each participant's wallet stored in the custody chain of each MassID, in proportion to their contribution, determined by the kg of the MassID relative to the TRC or TCC and the role(s) performed in the supply chain. The reward mechanism provides an incentive for further recycling and introduces new investment to the newly digitized recycling economy.
Liquidity pools will provide owners of $USDC the opportunity to swap their stable coins for $CARROT utility tokens, purchase tokens from outside the $CARROT protocol or retrieve fiat (cash), opening the world of DeFi to millions, if not billions of people who previously would not have had access. Those who choose to hold $CARROT will obtain governance rights at the Carrot DAO. A community-owned recycling solution for the global economy puts the power of creating a cleaner, low-carbon and sustainable future in the hands of its owners. Because the $CARROT ecosystem is open to all, any individual or organization can become a part of the community and take action as part of a decentralized solution to end pollution, reverse climate change and preserve our limited natural resources.
In sum, we see ourselves as the underlying infrastructure of the Web3 circular economy. Our technology is designed to be a self-sustaining public utility: a permissionless digital commons available to all without possibility of censorship.
The diagram below is a visual representation of how the Carrot Fndn utilizes Web3 technologies within the recycling economy to provide a scalable and progressive solution for all its participants.
Figure 14: The New Recycling Economy Diagram