# 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.