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Flowcarbon: Revolutionizing the Carbon Market with Transparent Tokenization

Updated: Oct 18, 2023

By Jaya Bijoor

Flowcarbon is a voluntary carbon marketplace that adds liquidity and transparency to the carbon market, allowing more capital to flow directly to significant conservation, reforestation, and ecosystem restoration projects. Tokenizing refers to converting a carbon credit into a digital token that can be bought, sold, and traded on a blockchain platform. By tokenizing their credits, sellers can access cheaper financing by selling these tokens in advance. This allows them to monetize their credits and generate revenue for their projects. For sellers, tokenization provides greater transparency over their holdings and allows for a broader range of participants, including individuals, smaller companies, and those in the crypto market, to join in. This opens up the market to more potential buyers and increases liquidity.


In addition, tokenization through Flowcarbon offers cost savings for carbon sellers. Instead of incurring the high costs of selling their credits traditionally through intermediaries,

sellers can pay a 2 percent tokenization fee, which is significantly lower. This allows sellers to save money and allocate more resources to their projects. Furthermore, token holders can unwrap and remove a carbon credit from the token bundle, allowing them to deliver the credit physically. This gives token holders the flexibility to sell the credit off-chain if they choose to do so.

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