An important driver for the creation of Flowcarbon was the need for a "two-way bridge" that allows GCO2 tokens to be redeemed off-chain for the underlying carbon credit. Redemption is the process by which the token holder exchanges her GCO2 tokens for actual off-chain credits.
The token holder initiates the redeem process by submitting a request to Flowcarbon. Upon approval of the request, Flowcarbon confirms the requestor has an account at the appropriate registering body. Then the GCO2 tokens are burned by the GCO2 smart contract and the physical carbon credits are then transferred from the bankruptcy remote SPV to the requesting entity's account.
Note: There is a standard 2% fee for redemption. If a GCO2 holder requests to redeem 100 GCO2s, they will receive back 98 off-chain carbon credits.
Last modified 1yr ago