The Offset module has a simple purpose: make sure offset claims are real and transparently recorded on an immutable ledger.
As explained in Pool, carbon offsets need to be pulled out of circulation for a compensation claim to be valid. In the legacy world, this is done by retiring the credits. On-chain, we use the term burning (i.e. destroying) the
TCO2 tokens. This way, it is guaranteed that an offset cannot be counted twice.
If you want to offset your emissions, you need to hold an equivalent amount of
TCO2 tokens and initiate the offset transaction through the Toucan dApp interface.
The transaction will burn the
TCO2, reducing the available supply of this project's offset tokens. At the same time, an offset certificate is minted to the user in the form of an NFT (non-fungible token) representing a proof-of-compensation. These NFTs will serve as publicly verifiable evidence that carbon offsets were retired and open up myriad possibilities for use cases as wide-ranging as corporate ESG reporting to gaming to cryptoart and beyond.