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  • Writer's pictureEvîn Cheikosman

Tuesday Project Spotlight: KlimaDAO

Updated: Feb 25, 2023



The blockchain industry is working at a fast clip to create new tools to advance social good. Today’s Tuesday Project Spotlight focuses on a Decentralized Autonomous Organization (DAO) working to combat climate change: KlimaDAO.


This ambitious project is attempting to foster positive climate action by creating a “black hole” for carbon. By increasing access and demand for carbon offsets, KlimaDAO is encouraging companies and nonprofits to sequester carbon out of the environment. Although the technical aspects are complicated, the concept is simple. Klima DAO is a protocol that will work to accelerate the price appreciation of carbon assets on the Voluntary Carbon Market with its “KLIMA” token, a carbon-backed digital currency created and governed by the DAO.


Last week, KlimaDAO launched “Klima Infinity,” a set of tools designed to enable “corporations and individuals to source, retire, and hold custody over carbon credits natively on the blockchain, transparently and efficiently.” These tools will also allow organizations to become carbon-neutral or even carbon-positive.


But how can this be done in a seamless way? KlimaDAO recognized that the user experience for organization and individuals operating in the Voluntary Carbon Market was bulky and inefficient. With the Klima Infinity launch, KlimaDAO will soon focus its attention on smoothing the path for sourcing, holding, and retiring carbon offsets.


As a new project, KlimaDAO faces some of the same headwinds that all new projects encounter. Is this scalable? Will organization and individuals sign on to KlimaDAO and adopt KLIMA? An easier user interface is a great place to start answering both of those questions, as non-tech folks (including attorneys) often don’t know where to start in this space. In addition, legal questions abound about the nature of DAOs themselves, including tax and liability issues.


What can lawyers do? In-house counsel in companies with large carbon footprints should be paying close attention to KlimaDAO, as this project intends to create public dashboard and blockchain-based proofs to make climate-positive actions more transparent (i.e., more marketable). Could formerly bad climate actors change their tunes (and avoid costly litigation) using Klima Infinity? Moreover, as the value of the KLIMA token rises, the DAO members could partner with legal services organizations working to protect the environment and raising their impact. Keep an eye on this project, as this could serve as a model for future socially beneficial activity in the blockchain space!

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