7️⃣Incentive Alignment and Deflationary Pressure

Incentive Alignment between TRACER DAO and the CARROT ecosystem

The TRACER ecosystem fosters a strong incentive alignment between the TRACER DAO and the CARROT Smart Contract. Proceeds from the TRACER token sale fund the development of the CARROT platform, including pilot projects and a comprehensive marketplace for carbon removal technologies. This marketplace will connect carbon removal project developers with buyers, facilitating the growth of the carbon removal economy.

As the carbon removal market expands and the price of carbon credits increases, the CARROT Smart Contract generates more revenue. Crucially, 1% of every CARROT token minted is used to buy and burn TRACER tokens, creating deflationary pressure and increasing the value of TRACER for token holders. This mechanism creates a positive feedback loop, where the success of the CARROT platform directly benefits TRACER holders.