There are two ways to retire a bundle token. A bundle token holder can directly retire the bundle token for no fee or select an underlying GCO2 token to retire for a dynamic fee. A bundle token holder can retire a specific GCO2 even if they are not a permissioned user capable of holding GCO2. If a bundle token holder chooses the no fee option, the oldest GCO2 (and thus oldest carbon credit) will be retired.
Note: Retirement of bundle tokens can be done completely on-chain without the token holder needing to interface or hold an account with the registry of the underlying carbon credit.
The bundle token holder starts by initiating a token retirement on the Flowcarbon dApp. This decreases the token holder’s balance of bundle tokens and increases her bundle retirement balance. The retired tokens accumulate transparently within the bundle contract until they exceed a to-be-determined size. Once the threshold is met, the bankruptcy remote SPV retires the credits in the underlying registry. The retirement event generates a UUID which is again used to generate a tamper proof checksum that is stored in the bundle contract and acts as proof-of-existence for auditing purposes. The accumulated retired bundle tokens as well as the underlying GCO2 tokens are then burned.