# Welcome to Tracer Unleash the potential of carbon removal TRACER, the governance token of the CARROT climate fintech ecosystem, combats global warming by establishing a functional carbon removal economy. While carbon neutrality is essential, it doesn't address existing greenhouse gases warming the planet. CARROT incentivizes carbon removal through a deflationary token mechanism that connects Real-World Assets (RWAs) – specifically carbon removal actions – with decentralized governance. This white paper details this approach and the resulting potential for climate restoration. Version 0.99C - September 4 2025 ## Quick links {% content-ref url="/pages/qftpG1rFrcXLgiC9iGBc" %} [Summary](/overview/summary) {% endcontent-ref %} {% content-ref url="/pages/zSjqOufCAQaX4kpKEMcE" %} [Disclaimer](/overview/disclaimer) {% endcontent-ref %} {% content-ref url="/pages/joswRvvBBsO8rMXY5Tgu" %} [Why we are doing this](/overview/why-we-are-doing-this) {% endcontent-ref %} {% content-ref url="/pages/k1TI5MNIivYqGrMwJNIk" %} [Tracer solution](/overview/tracer-solution) {% endcontent-ref %} {% content-ref url="/pages/3qN8khiPOVUz6F8OSRHE" %} [Tracer DAO](/overview/tracer-dao) {% endcontent-ref %} {% content-ref url="/pages/8fKPzeS5QRGooCZqZspk" %} [Market adoption](/overview/market-adoption) {% endcontent-ref %} {% content-ref url="/pages/6H3O0GG1NZQukx5ob4LH" %} [Tokenomics](/overview/tokenomics) {% endcontent-ref %} {% content-ref url="/pages/LLyozp3h5qEsIySPXIrx" %} [Team & Advisors](/overview/team-and-advisors) {% endcontent-ref %} {% content-ref url="/pages/iak8fyY3DyYEwUwnJgb6" %} [Glossary](/overview/glossary) {% endcontent-ref %} {% content-ref url="/pages/3UVZuqweGSd8L0SXWP6F" %} [Milestones](/overview/milestones) {% endcontent-ref %} {% content-ref url="/pages/bwtVD400kj1yCql2SHDo" %} [Conclusion](/overview/conclusion) {% endcontent-ref %} {% content-ref url="/pages/08t3OekpMIdmbuUfqjil" %} [Get in touch](/get-in-touch) {% endcontent-ref %} # Summary ### The urgent need for massive carbon dioxide removal The need to address climate change has never been more urgent. To put it in perspective, even if we move towards a carbon-neutral economy today, the 2.2 tera-tons of accumulated CO2 and other greenhouse gasses will continue to drive global warming for thousands of years to come. This stark reality underscores the critical importance of actively removing existing carbon dioxide from the air through a process known as carbon dioxide removal (CDR), in addition to reducing future emissions. Meanwhile, demand for high-quality carbon removal credits is surging as more companies and governments set ambitious net-zero or, [like Microsoft, net-negative targets](https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/). Buyers are increasingly willing to pay premium prices for credits representing genuine, permanent removal of carbon dioxide. However, access to an ample supply of trusted carbon removal credits remains constrained by the market's current limitations, threatening to stall the urgent scaling of CDR solutions. Adding to the fragmentation problem and illiquidity, the lack of transparency in the current carbon credit market has proven to be a challenge. While it intended to fund emission reduction and removal projects, these shortcomings hinder its effectiveness and scalability, which have prevented the market from realizing its full potential in the fight against climate change. Additionally, education may serve as one of the largest barriers to industry growth. In fact, a [study](https://pmc.ncbi.nlm.nih.gov/articles/PMC10069309/#gch2202200158-bib-0017) found that only 3% of German consumers actually understood the details behind companies claiming to be “Carbon Neutral”. This lack of public and institutional awareness causes a lapse in governance and transparency around these claims, creating risks of greenwashing and falsification. ### How Tracer unleashes the potential of the carbon removal market Tracer aims to address these challenges by providing an innovative blockchain-based solution that delivers trust, transparency, and liquidity to the carbon removal market. By leveraging a dual-token system, a robust grading framework, and advanced financial instruments, Tracer creates a unified approach for the efficient issuance, trading, and management of high-quality carbon removal credits. The Tracer ecosystem is powered by two primary tokens: the Tracer token (TRCR) for governance and incentivization, and the Carrot token (CRRT) for representing verified carbon removals. The Tracer DAO plays a central role in ensuring the integrity and growth of the ecosystem by aligning stakeholder interests through its governance mechanisms and incentive structures. Tracer's go-to-market strategy focuses on empowering carbon removal projects, incentivizing developers to build innovative financial products, and partnering with resellers to drive adoption. By creating a vibrant ecosystem of products and services built around the Carrot smart contract, Tracer aims to unlock the trillion-dollar potential of the carbon removal market. ### Tracer as the Solution As the world grapples with the urgent need to address climate change, Tracer presents a groundbreaking solution that can accelerate the growth and maturation of the carbon removal industry. By providing a transparent, efficient, and accessible solution for high-quality carbon removals, Tracer is poised to make a significant contribution to the global fight against climate change, while creating substantial economic opportunities for participants in the carbon removal ecosystem.


# Disclaimer THIS WHITE PAPER HAS BEEN PREPARED FOR THE PURPOSE OF INFORMING AND EDUCATING THE PUBLIC ABOUT THE TRACER PROJECT. IT DESCRIBES THE VISION, STRUCTURE, AND DEVELOPMENT ROADMAP OF THE TRACER ECOSYSTEM. THIS DOCUMENT IS NOT INTENDED TO CONSTITUTE, AND SHOULD NOT BE INTERPRETED AS, AN OFFER OF SECURITIES, FINANCIAL INSTRUMENTS, OR INVESTMENT PRODUCTS. NOTHING IN THIS WHITE PAPER SHOULD BE CONSIDERED LEGAL, FINANCIAL, BUSINESS, OR TAX ADVICE. PARTICIPATION IN THE TRACER ECOSYSTEM IS SUBJECT TO APPLICABLE LAWS AND REGULATIONS. TRACER TOKENS ARE NOT BEING OFFERED OR SOLD, AND MAY NOT BE OFFERED OR SOLD IN JURISDICTIONS CURRENTLY SUBJECT TO A FINANCIAL ACTION TASK FORCE (FATF) “CALL FOR ACTION”: IRAN, MYANMAR, AND NORTH KOREA. READERS SHOULD CONDUCT THEIR OWN DUE DILIGENCE AND CONSULT INDEPENDENT ADVISORS BEFORE ENGAGING WITH ANY ASPECT OF THE PROJECT. THE READER HAS BEEN ADVISED THAT TRACER TOKENS COULD IN CERTAIN JURISDICTIONS QUALIFY AS A SECURITY AND THAT THE OFFERS AND SALES OF THIS INSTRUMENT HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER ANY JURISDICTION’S SECURITIES OR SIMILAR LAWS AND CANNOT BE RESOLD EXCEPT IN COMPLIANCE WITH THE APPLICABLE JURISDICTION’S LAWS. **NOTICE TO RESIDENTS OF THE UNITED STATES** THE OFFER AND SALE OF THESE FINANCIAL INSTRUMENTS OR RIGHTS HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (U.S. SECURITIES ACT), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE FINANCIAL INSTRUMENTS OR RIGHTS MAY THEREFORE NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

# Why we are doing this ### 1.1 Carbon Credits: The Emergence of a Major Real-World Asset Class The need to address climate change has never been more urgent. To put it in perspective, even if we move towards a carbon-neutral economy today, the 2.2 tera tons of accumulated CO2 and other greenhouse gasses will continue to drive global warming for thousands of years to come. This stark reality underscores the critical importance of actively removing existing carbon dioxide from the air through a process known as carbon dioxide removal (CDR), in addition to reducing future emissions. Tracer is an infrastructure protocol for carbon removal markets, not just a carbon credit project. #### Limitations of the current carbon credit market The market for carbon credits, which is intended to fund emission reduction and removal projects, currently suffers from significant shortcomings that hinder its effectiveness and ability to scale: * Lack of transparency: Inconsistent and opaque verification practices erode trust in the true impact of credits. * Fragmentation: Varying quality standards across different markets create confusion and undermine fungibility of credits. * Illiquidity: Absence of efficient, transparent trading mechanisms limits market growth and price discovery. These issues have hindered the carbon credit market from realizing its full potential as a key tool in the fight against climate change. #### Growing demand hindered by market challenges Meanwhile, demand for high-quality carbon removal credits is surging as a growing number of companies and governments set ambitious net-zero targets. Buyers are increasingly willing to pay premium prices for credits that represent genuine, permanent removal of carbon dioxide. However, access to an ample supply of trusted carbon removal credits remains constrained by the market's current limitations: * Complexity: Opaque and fragmented market structure deters participation. * Lack of trust: Concerns over credit quality and integrity suppress demand. * Supply shortage: Carbon removal projects struggle to scale cost-effectively without sufficient funding. This mismatch between growing demand and lagging supply threatens to stall the urgent scaling of CDR solutions. Carbon removal projects find themselves in a catch-22, unable to expand without strong offtake agreements from credit buyers, who in turn are deterred by the shortage of verifiably high-integrity credits available. ### 1.2 Market Overview The carbon credit market enables the trading of carbon credits. Each credit represents the removal or reduction of one metric ton of CO2 or equivalent greenhouse gas from the atmosphere. This market has historically been dominated by projects focused on avoiding or reducing future emissions, such as protecting forests or transitioning to renewable energy. While valuable, these initiatives are insufficient to address the vast amount of carbon dioxide that has already accumulated in the atmosphere over centuries of industrial activity. Avoidance and reduction alone cannot remove the 2.2 trillion tons of CO2 already in the atmosphere. Current efforts are insufficient: we are still emitting over 50 gigatons of CO2 annually and even with net-zero emissions, temperatures will continue to rise.
Carbon markets exist in two primary forms: compliance markets, where governments require companies to pay for their pollution through taxes or regulated emissions caps, and voluntary markets, where companies choose to offset emissions on their own. Most carbon removal today is sold through the voluntary side. About 23% of global emissions are currently covered by a carbon price, indicating significant room for growth in both compliance and voluntary markets. Within this broader carbon credit market, CDR is emerging as a crucial complement to emission reduction efforts. CDR involves actively removing CO2 from the atmosphere and durably storing it, effectively reversing historical emissions. Despite the necessity of CDR in achieving net-zero targets, the current market remains nascent and fragmented. As of 2022, the CDR market was relatively small at just \~600 kt (kiloton) CO2 but has seen significant acceleration in 2023 with large purchases from companies like Microsoft, J.P. Morgan, and NextGen. However, the projected available supply of durable CDR in 2030 is limited to \~15-32 Mt (Megaton) CO2 across a few announced large-scale projects, primarily consisting of bioenergy with carbon capture and storage (BECCS), direct air capture and storage (DACS), and enhanced weathering. #### Growth potential A recent [analysis by Boston Consulting Group](https://www.bcg.com/publications/2023/the-need-and-market-demand-for-carbon-dioxide-removal) estimates the demand for durable CDR in 2030 could range from \~40-200 Mt CO2 ($10B - $40B), with the vast majority (\~90%) expected to come from the voluntary carbon market. This demand is likely to be driven by early purchases from industries with progressive climate commitments and high willingness to pay, such as software and professional services. Looking further ahead, [a McKinsey report projects](https://www.mckinsey.com/capabilities/sustainability/our-insights/carbon-removals-how-to-scale-a-new-gigaton-industry) that a CDR industry capable of delivering gigaton-scale removals at net-zero levels could be worth up to $1.2 trillion annually by 2050. This estimate varies depending on the volumes of CO2 removal deployed and the balance of solutions used to deliver these volumes. Based on the expected delivery of announced CDR projects, McKinsey estimates a market size of $40 billion to $80 billion by 2030, aligning with BCG's upper estimate. However, if demand for CDR credits is scaled up sufficiently to deliver the volumes needed to meet net-zero-compatible climatic needs by 2050, McKinsey projects annual revenues from the CDR industry could reach $0.3 trillion to $1.2 trillion. These projections underscore the immense growth potential of the CDR market as the world increasingly recognizes the necessity of carbon removal in achieving global climate targets. The estimated market size in 2030 represents a critical stepping stone towards the trillion-dollar scale that may be required by mid-century. However, realizing this growth will require significant investment, innovation, and policy support to rapidly scale up CDR solutions and drive down costs. McKinsey estimates that delivering the necessary CDR capacity for net-zero could require cumulative investment of $6 trillion to $16 trillion by 2050, far exceeding current investment levels. The convergence of these market projections from leading consultancies highlights the consensus around the substantial economic opportunity presented by CDR. As companies and governments alike sharpen their focus on achieving net-zero, the demand for high-quality carbon removals is poised for explosive growth in the coming decades. Early movers who help to establish a transparent, liquid, and trusted CDR market today could be well-positioned to capture a significant share of this trillion-dollar opportunity. ### 1.3 The opportunity To unlock the trillion-dollar potential of the CDR market, there is an opportunity for a solution that enhances trust and liquidity while supporting the growth of emerging CDR technologies to become cost-effective and a quality alternative for buyers who are willing to pay a premium for carbon credits they can verify are effective in removing carbon dioxide from the atmosphere. Trust can be built through a transparent and incentivized solution for verifying and grading CDR credits based on their 'persistence', or the duration for which the removed carbon dioxide remains stored and prevented from re-entering the atmosphere. Liquidity and scale can be improved by creating a unified standard that facilitates efficient trading, enabling price discovery, increasing market depth, and allowing for innovative technologies to get the necessary scale to become cost efficient. The success of this new standard relies on aligning incentives among stakeholders and fostering a collaborative ecosystem through market-based incentives. Stakeholders who actively contribute to the development and adoption of this new standard will be well-positioned to drive meaningful climate impact and capture significant economic value in. By working together to build a transparent and efficient market for high-quality carbon removals, the full potential of the CDR market could be unlocked.


# Tracer solution ### 2.1. Background As discussed in the previous section, the current carbon dioxide removal (CDR) market is dominated by projects focused on reducing future emissions, which, while valuable, are insufficient to address the vast amount of CO2 that has already accumulated in the atmosphere. To meet the urgent need for gigaton-scale carbon removal, the market must rapidly scale up and embrace a wide range of CDR solutions, including both nature-based and engineered approaches. However, the fragmented nature of the current market, lack of standardization, and limited liquidity pose significant challenges to achieving this goal. Trust in the quality and integrity of carbon credits is undermined by the absence of transparent verification processes and the risk of reversals. Additionally, the complexity of navigating multiple projects, standards, and platforms hinders accessibility and efficiency for both buyers and suppliers. Tracer is the foundational layer enabling the digitization of the carbon removal industry. It aims to address these challenges by providing a disruptive blockchain-based solution that delivers both trust and liquidity to the CDR market. By leveraging smart contracts and advanced financial functionality, Tracer creates a unified solution for the issuance, trading, and management of high-quality carbon removal credits. ### 2.2 Technical overview Tracer has developed an innovative solution to address the paradox of achieving liquidity and traceability in the carbon removal token market. Traditionally, carbon credits have been either liquid but untraceable (generic fungible tokens) or traceable but illiquid (project-specific over-the-counter transactions). Tracer's approach overcomes this challenge by leveraging a single smart contract to create project-specific, graded, and fungible tokens that keep their traceability at all times. Tracer's technical solution is built upon core principles that enable it to create a transparent, scalable, and efficient carbon removal market: #### Persistence grading By assigning a higher value to more persistent removal methods, such as enhanced weathering (which can store CO₂ for 100,000+ years), Tracer rewards long-term, effective solutions. Tracer introduces the concept of "grade" as an indicator of the persistence of carbon sequestration. This allows for an objective comparison of different CDR projects based on the longevity of their carbon storage. By assigning a higher value to more persistent removal methods, such as enhanced weathering (which can store CO2 for 100,000+ years), Tracer creates a market that rewards long-term, effective solutions. Additionally, the grading system addresses the ephemeral nature of each project by tying the value of the tokens to the duration of carbon storage. As tokens are minted and then retired over time, the market can accurately reflect the value of the carbon removal based on its persistence. This entire process is recorded using blockchain technology to ensure immutable traceability. To achieve the goal of removing the 2.2 trillion tons of excess CO2 in the atmosphere, Tracer's system is designed to be highly scalable. By delegating project curation and management to endorsed entities, Tracer minimizes overhead and enables the inclusion of a wide range of removal solutions, from established methods to novel approaches. This scalability is essential to reach the tens of thousands of projects needed to make a significant impact on atmospheric CO2 levels. #### Scalability Tracer is designed to be highly scalable. By delegating project curation and management to endorsed entities, Tracer minimizes overhead and enables the inclusion of a wide range of removal solutions. #### Trust and governance Trust is a crucial factor influencing the price and adoption of carbon removal credits. Tracer ensures trust through two key mechanisms: traceability and governance. First, every token ID contains information about the specific project and endorser, providing complete traceability of the carbon removal process. Second, strong governance and enforcement capabilities, enabled by the Tracer DAO, ensure the integrity of the system and allow for the swift action against any misrepresentation of performance. #### Liquidity Tracer recognizes that liquidity is essential for price discovery, market stability, and growth. To achieve this, Tracer employs a single ERC1155 smart contract for all projects, creating a standardized and efficient framework for issuing and trading carbon removal tokens. This standardization, combined with the tokens' compatibility with decentralized finance (DeFi) platforms, enables the creation of advanced financial instruments that can further boost market growth and liquidity. For example, the Carrot tokens allow for the development of sophisticated products such as carbon removal credit futures, which enable sellers to secure funding for their projects by selling credits before they are delivered. The creation of collections of tokens grouped by persistence grade or project type, known as "Baskets of Carrot Tokens", enables investors to easily access and trade diversified portfolios of carbon removal credits, increasing liquidity and market efficiency. Tracer's unique value proposition lies in its approach to creating project-specific, graded, and fungible tokens through a single smart contract that effectively solves the liquidity-traceability paradox. Here's how it works: * Project-specific tokens: Each carbon removal project is represented by a unique token ID within the ERC1155 smart contract. This ensures that every token is linked to a specific project, maintaining full traceability of the carbon removal process. * Graded tokens: Tokens are assigned a grade based on the persistence of the carbon sequestration method used by the associated project. This grading system allows for the objective comparison of different projects and enables buyers to make informed decisions based on their preferences for long-term impact. * Fungible tokens: While each token is linked to a specific project, tokens with the same grade are fungible within their persistence category. This means that buyers can easily trade and exchange tokens within the same grade, without losing the traceability of the underlying projects. This fungibility is crucial for creating a liquid market that supports price discovery and efficient trading. ### 2.3 Dual-Token System In order to build solutions and govern the Tracer ecosystem, Tracer is based on a smart contract architecture consisting of two primary components: #### Tracer Token (ERC20) The governance token of the Tracer ecosystem, used for voting on key decisions and incentivizing participation in the ecosystem. #### Carrot Token (ERC1155) A fungibility-agnostic token representing 1000 kilograms of CO2 removed. Carrot tokens are minted by Project Developers and contain metadata on the associated CDR project at all times, ensuring a high level of transparency and traceability. The Tracer ecosystem is governed by the Tracer DAO, which is responsible for selecting Endorsers, managing the treasury, and ensuring the overall integrity of the system. Tracer tokens are used to align incentives within the DAO, as their value is directly tied to the growth and success of the Carrot economy.
### 2.4 The Tracer Token ($TRCR) The Tracer token (TRCR) is an ERC20 token with a pre-minted supply, serving as the governance backbone of the Tracer ecosystem. Key features and functions of the Tracer token include: * Governance: $TRCR holders can vote on crucial protocol decisions, such as upgrading smart contracts, granting or revoking Endorser NFTs, and managing the Tracer DAO treasury, ensuring decentralized control and community-driven development. * Deflationary mechanism: A portion of the minting fees collected from the creation of Carrot tokens is used to buy back and burn $TRCR, creating deflationary pressure and potentially increasing the value of remaining Tracer tokens over time. Staking and incentives: A staking mechanism is proposed in which $TRCR tokens can be staked by Endorsers and project developers as a form of collateral, aligning their interests with the long-term success of Tracer, for example to enable carbon credit futures, in which a certain risk to the buyer has to be managed. Staked tokens may be eligible for rewards, further encouraging participation and commitment to the ecosystem. ### 2.5 The Carrot Token ($CRRT) The Carrot token (CRRT) is an ERC1155 token that represents a specific amount of CO2 removed from the atmosphere. It is designed to be fungibility-agnostic, combining features of both ERC20 and ERC721 standards to enable efficient management of multiple token types within a single smart contract. Key features and functions of the Carrot token include: 1. Representation of carbon removal: Each Carrot token represents a specific amount of CO2 removed, with one token equating to one ton of CO2. The metadata associated with each token provides information on the associated CDR project, Endorser, and removal process. 2. Grading system: Carrot tokens are classified into different grades based on the persistence of the carbon removal they represent. This grading system enables price stratification and allows buyers to make informed decisions based on their preferences and risk tolerance. 3. Minting and supply control: Carrot tokens are minted by approved Endorsers, who are granted Project NFTs by the Tracer DAO. These Project NFTs specify the grade, name, and maximum supply or minting rate of the associated Carrot tokens, ensuring controlled and transparent issuance. 4. Utility and tradability: Carrot tokens can be bought, sold, and traded on various platforms, including decentralized exchanges (DEXs) and carbon markets. They may also be used for offsetting purposes, retired, or burned to demonstrate the cancellation of a specific amount of CO2 emissions. 5. Contribution to Tracer DAO: A small percentage (e.g., 2%) of minted Carrot tokens are automatically transferred to the Tracer DAO treasury, providing a source of revenue for the ecosystem and aligning the interests of Carrot token minters with the overall success of the ecosystem. The dual-token system employed by Tracer creates a symbiotic relationship between governance and utility, ensuring that the ecosystem remains decentralized, transparent, and focused on its core mission to unlock the potential of the carbon removal market. ### 2.6 Tracer applications as market infrastructure technology By leveraging the features of the Carrot smart contract, such as the ERC1155 token standard and the grading system, Tracer unlocks a wide range of possibilities for financial applications that can drive significant economic value and accelerate the growth of the carbon removal industry. The introduction of liquidity in the carbon removal market through Tracer's disruptive blockchain solution is a game-changer, enabling the creation of advanced financial products that were previously impossible due to the lack of transparency and standardization. With Tracer's technology, the $80 billion carbon credit market can now tap into the vast potential of DeFi, opening up new opportunities for investors, project developers, and other ecosystem members. #### Carrot token futures: a key driver of adoption One of the most significant applications of Tracer's technology is the development of Carrot token futures. Carbon removal project developers or credit sellers face a major challenge in securing funding to start and scale their projects. This is particularly important because carbon removal credits are currently more expensive than carbon credits derived from reduction and avoidance initiatives. Tracer's strategy is to address this challenge by enabling the creation of financial instruments that allow sellers to sell carbon removal credits before they are delivered. This approach provides several benefits: 1. Guaranteed price for buyers: By purchasing Carrot token futures, buyers can lock in a guaranteed price for their carbon removal credits, potentially securing a discount on the final market price when the credits are delivered. 2. Funding for sellers: Sellers can use the commitment from buyers to obtain financing for their projects, providing them with the necessary capital to start and scale their operations. This is crucial for bringing down the costs of carbon removal credits and making them more competitive with other types of carbon credits. 3. Risk mitigation: Futures contracts help to mitigate risks for both buyers and sellers by providing price certainty and reducing exposure to market volatility. 4. Market efficiency: The trading of Carrot token futures contributes to improved price discovery and market efficiency, as market participants can use these instruments to express their views on future supply and demand dynamics. #### Baskets of Carrot tokens Baskets are essentially collections of Carrot tokens that are grouped together based on specific criteria, such as their persistence grade or the type of carbon removal project they represent. By creating these baskets, Tracer enables investors and other participants to easily access and trade a diversified portfolio of carbon removal credits, without having to manage multiple token contracts or navigate the complexities of the underlying projects. The benefits of Carrot token baskets include: 1. Diversification: By holding a basket of Carrot tokens, investors can spread their risk across multiple projects and persistence grades, reducing their exposure to any single project or carbon removal method. 2. Liquidity: Carrot tokens can be easily traded on decentralized exchanges (DEXs) or other DeFi platforms, providing investors with a high degree of liquidity and the ability to quickly enter or exit positions based on market conditions. 3. Customization: Baskets of Carrot tokens can be customized to meet the specific needs and preferences of different investors, such as those who prioritize long-term carbon sequestration or those who want to support specific types of carbon removal projects. 4. Price discovery: By creating a market for baskets of Carrot tokens, Tracer enables more efficient price discovery for different grades and types of carbon removal credits, helping to establish benchmark prices and improve overall market transparency. #### DeFi applications The combination of Carrot token baskets, futures contracts, and other advanced financial instruments creates the foundation for the development of fully decentralized carbon removal exchanges. These exchanges can leverage Tracer's technology to provide a secure, transparent, and efficient platform for the trading of carbon removal credits, enabling market participants to access a wide range of financial products and services. Key features of decentralized carbon removal exchanges include: 1. Accessibility: By leveraging blockchain technology and DeFi protocols, decentralized exchanges can provide access to a global pool of investors and project developers, regardless of their location or financial status. 2. Transparency: All transactions and market data on decentralized exchanges are recorded on the blockchain, providing a high degree of transparency and immutability. 3. Security: Decentralized exchanges utilize smart contracts and other blockchain-based security measures to ensure the safety and integrity of user funds and transactions. By unleashing the potential of advanced financial instruments and services Tracer is not only revolutionizing the carbon removal market but also creating a new paradigm for sustainable finance.
# Tracer DAO The Tracer DAO (Decentralized Autonomous Organization) is an essential component of the Tracer ecosystem, serving as the governing body that ensures the integrity, transparency, and effectiveness of the project. By aligning the incentives of Tracer token holders with the overall goal of removing CO2 from the atmosphere, the DAO creates a robust, scalable and sustainable framework for the growth and management of the Tracer ecosystem. ### 3.1 DAO Governance Tracer token holders play a crucial role in the governance of the Tracer ecosystem through the DAO. The DAO balances decentralization with oversight to ensure trust and integrity of the entire ecosystem. DAO members are responsible for voting on key decisions that shape the future of Tracer, such as: 1. **Endorser Selection:** The DAO is responsible for granting Endorser NFTs to trusted certification authorities and organizations that have the expertise and credibility to curate and manage carbon removal projects, ensuring that only high-quality projects are onboarded onto the Tracer standard.
2. **Endorser and project oversight**: In addition to granting the Endorser status, the DAO has the power to revoke Endorser NFTs or Project NFTs if they are found to misrepresent their performance or engage in fraudulent activities. This oversight mechanism helps maintain the integrity of the Tracer ecosystem and protects buyers from low-quality or fraudulent carbon credits.
3. **Smart contract upgrades:** As Tracer evolves, the DAO is responsible for proposing and voting on upgrades to the Carrot and Tracer smart contracts. This allows the ecosystem to adapt to changing market conditions, incorporate new features, and address any issues that may arise.
### 3.2 Incentive alignment One of the key strengths of the Tracer DAO is its ability to align the incentives of Tracer token holders with the broader goal of removing CO2 from the atmosphere. This alignment is achieved through: * **Carrot economy driven rewards:** Rewards can be seen as the result of the number of Carrot tokens minted multiplied by the grade of the tokens. This means that $TRCR token holders are incentivized to support the growth and success of the entire carbon removal market, rather than just focusing on short-term gains. * **Treasury management:** The Tracer DAO also manages treasuries of $TRCR tokens (25% of the total supply of Tracer), which will be used to fund development, incentivize participation, and support high-impact carbon removal projects. By carefully managing these resources, the DAO can help ensure the long-term sustainability and growth of the Tracer ecosystem. ### 3.3 Participation and voting All $TRCR holders are allowed to participate in the Tracer DAO through three means: 1. **Proposal submission:** Any Tracer token holder can submit a proposal for consideration by the DAO. Proposals can cover a wide range of topics, from Endorser selection and project oversight to smart contract upgrades and treasury management. 2. **Voting:** Once a proposal is submitted, Tracer token holders can vote on whether to approve or reject it. The voting power of each token holder is proportional to the number of Tracer tokens they hold, ensuring that the decision-making process is fair and representative of the entire community. In order to prevent voting biases, Tracer uses a "snapshotting" system whereby the TRCR holdings at the time a vote is announced is used for voting. 3. **Implementation:** If a proposal is approved by the required majority of Tracer token holders, it is implemented by the Tracer team or through automated smart contract execution, depending on the nature of the proposal. # Market adoption Tracer's go-to-market strategy is unique in the carbon removal market, focusing on empowering the long tail of suppliers and creating a vibrant ecosystem of financial products and services built around the Carrot smart contract. This approach differs from the "build it and they will come" strategy employed by many competitors, which has often failed to gain significant traction. ### 4.1 Empowering the supply side Tracer's initial focus is on supporting the long tail of carbon removal project developers, as the current market is characterized by high demand for carbon removal credits but limited supply. By leveraging the Tracer DAO's treasuries, the ecosystem aims to empower these suppliers through: * Access to funding for new projects: Tracer's financial instruments, such as Carrot token futures, enable project developers to secure funding by selling carbon removal credits before they are delivered. This provides them with the necessary capital to start and scale their operations. * Easy access to buyers: Tracer enables project developers from every size to access a wide range of buyers, including those with high demand for carbon removal credits. This eliminates the need for intermediaries and enables suppliers to succeed in scaling their carbon removal solution and maximize their revenue potential. * Achieving cost-efficiency: Tracer helps projects achieve cost-efficiency by enabling them to scale their own projects. As carbon removal technologies scale, the costs are expected to decrease. For example, large-scale deployment of bioenergy with carbon capture and storage (BECCS) [can reduce per-unit costs](https://www.mckinsey.com/capabilities/sustainability/our-insights/carbon-removals-how-to-scale-a-new-gigaton-industry) through economies of scale. Moreover, investment in technology innovation is crucial. Current costs for DAC can be high, but with continued development, these costs could [drop to around $200 per ton of CO2](https://www.bcg.com/publications/2024/direct-air-capture-belongs-in-every-companys-net-zero-plans). By providing project developers with access to funding and a wide range of buyers, Tracer empowers them to scale their projects and achieve cost-efficiency. ### 4.2 Attracting developers In addition to supporting suppliers, Tracer actively incentivizes other developers with grants and tooling like APIs and SDKs to build products that leverage the Carrot smart contract. These products can facilitate the trading of carbon credits while ensuring traceability and liquidity. By fostering a diverse ecosystem of financial products and services, Tracer offers a unique DeFi (decentralized finance) proposition that sets it apart from competitors. Some examples of financial products that developers could build on top of Tracer include: 1. Decentralized exchanges: Developers can create specialized decentralized exchanges for trading Carrot tokens and other carbon-related assets, providing users with a seamless and transparent trading experience. 2. Lending and borrowing platforms: Developers can build platforms that allow Carrot token holders to lend their tokens to others or use them as collateral for borrowing other assets, creating new opportunities for liquidity and capital efficiency. 3. Prediction markets: Developers can create prediction markets that allow users to speculate on the future price of Carrot tokens or the success of specific carbon removal projects, providing valuable insights into market sentiment and trends. ### 4.3 Incentivizing (re)sellers To further drive adoption, Tracer incentivizes exchanges, agents, and other third parties to sell Carbon Credit products to both small and large buyers. Tracer can incentivize (re)sellers through: 1. Revenue sharing: These arrangements reward (re)sellers for bringing new buyers and suppliers to the ecosystem. 2. Marketing support: Providing marketing resources and co-branding opportunities to help (re)sellers promote Tracer carbon credit products to their customers. 3. Technical assistance: Offering technical support and training to help (re)sellers integrate Tracer's products and services into their existing platforms and workflows. ### 4.4 Roadmap The roadmap for Tracer's development and adoption is designed to ensure the ecosystem's success in the rapidly evolving carbon removal market. As the ecosystem progresses through 2025 and 2026, the emphasis shifts towards expanding the ecosystem and introducing new features and functionalities. This includes the development of the Carrot smart contract, the creation of a real-time pricing model, and the introduction of the First Future Carrot sales and an incentive program for exchanges and other seller third parties. By 2027 and beyond, Tracer aims to have established itself as a leading player in the carbon removal market, with a thriving ecosystem of suppliers, buyers, developers, and partners.
# Tokenomics ### 5.1 The dual-token ecosystem: Tracer and Carrot The ecosystem consists of two primary tokens:
1. **Tracer Token:** * Type: ERC20 token with a pre-minted supply. * Purpose: Governance, incentivizing and economic stability. * Ticker: $TRCR * Total supply cap: 12,500.000.000 (12.5 billion) - 100% minted at token generation event. * Deflationary mechanism: Tracer tokens are automatically bought and burnt using proceeds from the carrot minting commission to reduce supply and create deflationary pressure​​. * Staking: a staking mechanism for endorsers and project developers is proposed to enhance accountability. * Description: Tracer tokens are used to vote on issues related to both tracer and carrot, manage the treasury, and ensure the integrity of the ecosystem. Locking mechanism protects governance (defense against Sybil attacks).
2. **Carrot Token:** * Type: ERC1155 fungibility-agnostic token. * Ticker: $CRRT * Purpose: Enable efficient management of multiple token types within a single contract. * Minting process: Progressive by the project. * Description: Carrot tokens are minted by projects validated by endorsers and can be either fungible or non-fungible. Each carrot token represents a specific amount of CO2 removed and includes details about the project and its persistence. A percentage of minted carrot tokens are transferred to the Tracer DAO​​. ### 5.2. Tracer token distribution The Tracer tokenomics are structured to ensure a balanced distribution that supports long-term project sustainability and growth. All 12.5 billion tokens will be minted at the Token Generation Event and allocated into the following categories: * Current and future core team (20%): allocated for the team to incentivize ongoing development and operations. * Early backers & advisors (20%): reserved for early backers that enabled the start of the project. * Public sale (2.5%): made available to the public, ensuring community participation and ownership. * Ecosystem Growth (25.0%): used to foster the ecosystem's expansion through partnerships, community grants, and new integrations, this approach also defines a method by which participants can earn tokens, clearly establishing a cap to ensure sustainability and value preservation. * Treasury (25%): funds earmarked for future operational needs, contingency plans, and scaling the project's impact. * Airdrop (0.5%): intended to increase token distribution and promote wider user adoption. * Tracer Ltd (5%): Tokens reserved for Tracer Ltd to cover operational needs on behalf of the DAO. * Private Sale (2%): Tokens allocated to early strategic purchasers prior to the public launch.
### 5.3 Token release schedule Tracer uses a vesting delay and vesting schedules to slowly ease liquidity into the market. Vesting is when a beneficiary earns tokens based on certain conditions (usually time-based). It creates a more fair token release mechanism for both early backers and the token community, which is what Tracer stands for. Each stakeholder group has its own token lock and vesting schedule. | Core team | 20% | 12 months | 36 months | | ---------------- | ---- | --------- | ------------- | | Tracer Ltd | 5% | - | 60 months | | Early backers | 20% | - | 90% 36 months | | Public sale | 2.5% | - | no vesting | | Ecosystem growth | 25% | - | 60 months | | Treasury | 25% | 12 months | 60 months | | Airdrop | 0.5% | - | no vesting | | Private Sale | 2% | - | no vesting |
This is a visualization of the Tracer token release schedule based on the vesting schedules. Only the Private Sale tokens, 2% of the total, and the Public Sale (2.5%) and Airdrop (0.5%) are fully vested at the TGE. Note the one year Vesting Delay for the team (the yellow line), followed by 36 months vesting. This shows long term commitment and belief by team members in the Tracer project. ### 5.4 Total circulating supply The majority of the token supply is subject to long-term lock-ups to slowly ease liquidity into the market. The chart below shows how the total circulating supply will gradually release coins into the total supply in time. The chart represents the hard-capped supply of 12.5 billion Tracer tokens. The chart ignores how the token burn mechanism will reduce the total supply over time.
### 5.5 Rewards and incentives #### Buyback and burn Yet, it is crucial to understand that the maximum circulation of Tracer tokens, 12.5 billion, is only theoretical, as Tracer tokens are continuously purchased with 1% of the the proceeds of minted Carrot tokens. These tokens are then burnt which in turn creates a deflationary pressure on the remaining Tracer tokens. #### Staking mechanism Tracer is studying different staking mechanisms as potential tools to enhance credibility, accountability, and alignment of incentives across the ecosystem. Options under consideration include staking by project developers, certification entities, token holders, and partners who introduce Carrots to their customers, with the possibility of rewards being funded from the Ecosystem Rewards Pool. These mechanisms could serve multiple purposes, such as backing the integrity of endorsed projects, supporting governance, incentivizing market adoption, or reinforcing confidence in carbon credit issuance. The final design, including eligibility, timelines, and reward levels, will be determined through DAO governance and may adapt as the ecosystem grows. ### 5.6 Use of proceeds
As the ecosystem matures and the ecosystem expands, the allocation of funds is expected to shift, with a greater emphasis on incentives for buyers, exchanges, and suppliers, and ongoing software development.
### 5.7 Regulatory compliance To ensure compliance with evolving global regulations, Tracer will: * Implement rigorous KYC and AML procedures to prevent illicit activities and enhance transaction security. * Adhere to relevant securities and financial regulations, ensuring that all token sales and operations are conducted within legal frameworks. * Engage continuously with regulatory authorities to stay ahead of regulatory changes and ensure compliance across all jurisdictions. # Team & Advisors ### 6.1 The Tracer team The Tracer team consists of a dedicated group of international industry leaders with long, successful track records in their respective fields. The team's diverse expertise spans technology, finance, law, and business development, providing a strong foundation for the ecosystem's growth and success. **Philippe Tarbouriech (Chief Technology Officer)** \ A multidisciplinary technologist with over 20 years of experience at technology companies in the US and Europe, including as a Technology Fellow at Electronic Arts. Philippe operates best at the crossroads between business, technology, and marketing. ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXe4pSwwZ5BoHXp9PyIqb-3alDucpaCRhRIgfCBhgJwKMqwBGymdB6lYIYrX9S22KxI8FhyhJUGux0_iUGhb6xotn6dJvFRt0pNRBnrU_BZTt6YiPKADUbvuOepY5z4KI3idGMVLNA?key=qk5jCclRigr8D6afbMTrRGiT) **Hans Tobé (Chief Executive Officer)**\ Brings over 25 years of experience in financial roles in international business. In his previous role, Hans led the finance and operations teams of the Netherlands Council for Trade Promotion, overseeing the business support infrastructure in over 20 countries. His extensive experience in managing complex financial operations across multiple jurisdictions will be invaluable in guiding Tracer's financial sustainability. ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXf8T8M2hs-hBMDRdmMiS48kyKolVXOKabVJhnhVKa-d2x_4OIjUB8KPjhZHdPuRAFLzVXbOgyYPI1vH3R7ZDxe44ALk-p8hEIZtIbFWb7ntPNt04qamrFs7jCiQ9zeJHbPWq-vWPw?key=qk5jCclRigr8D6afbMTrRGiT) **Hester Kranendonk (Chief Legal Counsel)**\ A successful international corporate law and finance attorney who has decided to pursue her career in sustainable business projects. Hester will develop, guard, and coordinate the relationships between the various participants in the Tracer ecosystem, ensuring that it operates in compliance with relevant legal and regulatory frameworks. ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXcJJolKFy6htcjuUioSijbfeS9bY-45Ese1Rir8JWUUDTCr1k7UDFnNSA9bFFOAkFP8dxIADoUL83H4fWxaLhflmL7xfyOfngeu8OWboj_AzsF8HDTRU3Vkx7oNpl6tvV4nPMHm?key=qk5jCclRigr8D6afbMTrRGiT) ### 6.2 The advisory board Tracer's Advisory Board includes luminaries from various fields, bringing a wealth of experience and expertise to support the ecosystem's development and growth. **Dr. Alberto Pace**, head of data management at CERN in Geneva, brings his extensive knowledge of large-scale data management and analysis to help Tracer develop robust and scalable solutions for tracking and verifying carbon removal projects. ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfoFdH5yHzW7jWJPurJsHZDuy7Esn_-NCy1XwBbg9ScJHtPg3qVlJFpFo7vK7a_SXE3stGCFHoarRpH0DzM5ykWtHX_lkVeKunGXaxxlJXXWEVzdO7-2V7Nq6MTMAw-Pva0rTZqXw?key=qk5jCclRigr8D6afbMTrRGiT) **Hubert Shio-Hsien Tai**, who has been involved as CTO in the US IPOs of two leading Chinese technology companies, provides valuable insights into the technology landscape and the process of scaling and growing successful technology ventures. **Andrew Barbeau**, Based in Chicago, USA. Andrew has advised companies and governments on how to successfully advance clean tech and smart city projects in the United States. His strategic insights and deep understanding of the carbon removal industry will help guide Tracer's long-term vision and positioning in the carbon removal market. The combined expertise and experience of Tracer's team and advisory board positions the ecosystem to become a leading player in the carbon removal market, driving innovation, fostering collaboration, and accelerating the adoption of effective carbon removal solutions on a global scale.
# Glossary **Blockchain**\ A decentralized, distributed ledger technology that records transactions across a network of computers, ensuring transparency, security, and immutability. **Carbon Credit** \ A tradable certificate or permit representing the right to emit one metric ton of carbon dioxide or an equivalent amount of another greenhouse gas. **Carbon Dioxide Removal (CDR)** \ The process of capturing carbon dioxide from the atmosphere and storing it in a manner that prevents its release back into the atmosphere for an extended period. **Carrot Token (CRRT)** \ An ERC1155 token that represents a verified amount of carbon dioxide removed from the atmosphere. Each token is tied to a specific carbon removal project and includes a grade based on the persistence of the removal. **Decentralized Autonomous Organization (DAO)** \ An organization represented by rules encoded as a computer program that is transparent, controlled by the organization's members, and not influenced by a central government. **Decentralized Finance (DeFi)**\ A blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments. **Endorser** \ An entity, such as a certification authority or large corporation, that is recognized by the Tracer DAO to curate, validate, grade, and endorse carbon removal projects. **ERC20**\ A technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. **ERC1155**\ A multi-token standard that enables the efficient transfer of multiple token types at once, including both fungible and non-fungible tokens. **Fungibility**\ The property of a good or a commodity whose individual units are essentially interchangeable and indistinguishable from each other. **Liquidity**\ The degree to which an asset or security can be quickly bought or sold in the market without affecting its price. **Non-Fungible Token (NFT)**\ A unique digital asset that represents ownership of a specific item or content, such as a piece of art, music, or video. **Persistence**\ In the context of carbon removal, persistence refers to the duration for which the removed carbon dioxide remains stored and prevented from re-entering the atmosphere. **Smart Contract**\ A self-executing contract with the terms of the agreement directly written into code, which automatically executes when predetermined conditions are met. **Staking**\ The process of locking up tokens as collateral to support the operations of a blockchain network, often used as a means of earning rewards or gaining governance rights. **Token Generation Event (TGE)**\ The moment when a new cryptocurrency or token is created and distributed to investors or the public. **Tokenomics**\ The economic framework and incentive structure designed around a cryptocurrency or token, including factors such as token distribution, supply, and governance. **Tracer Token (TRCR)**\ The governance token of the Tracer ecosystem, used for voting on key decisions, managing the treasury, and ensuring the integrity of the ecosystem. **Voluntary Carbon Market (VCM)**\ A market where individuals, companies, or governments can purchase carbon credits voluntarily to offset their emissions or support environmental projects. # Milestones ### 2024: Foundation & Development Throughout 2024, the TRACER team dedicated its efforts to solidifying the core concepts underpinning the platform and developing robust prototypes. This period involved extensive research, design iterations, and technical validation to ensure a strong foundation for the TRACER ecosystem. ### 2025 - Q3: Private Sale & Token Launch The third quarter of 2025 will mark the official launch of the TRACER token. A private sale round will be conducted to secure strategic partnerships and early-stage investment. This will be followed by a public sale offering wider community participation via established launchpads, granting access to the TRACER token and the broader TRACER ecosystem. ### 2025 - Q3: Public sale & Centralized Exchange Listings TRACER will be listed on carefully selected centralized cryptocurrency exchanges. These listings will enhance accessibility and liquidity for the token, enabling broader market participation and trading activity. ### 2026: Business Expansion The obtained funding in 2025 will serve as a solid foundation to expand the business and increase adoption of the Carrot Smart Contract, thus expanding the Carrot-Tracer universe, in 2026 and beyond. ### 2026 - Q1: Pilot Programs with Marquee Partners The first quarter will be dedicated to conducting pilot programs with key partners in strategic industries. These collaborations will serve to demonstrate real-world applications of TRACER technology, gather valuable feedback, and refine the platform's functionalities.
# Conclusion TRACER presents a compelling opportunity for cryptocurrency purchasers seeking exposure to the burgeoning carbon removal market. By combining a focus on high-quality carbon removal credits with a unique deflationary token mechanism, TRACER offers a promising investment with the potential for significant returns while contributing to a critical global cause. The project's strong team, strategic partnerships, and innovative approach position it for success in the rapidly growing carbon removal economy. # Get in touch Website: Email: X: Telegram: LinkedIn: