Why On-Chain Carbon Credits Matter

Demand for high-integrity offsets has outpaced supply. Tokenization reduces friction: it lowers minimum commitment thresholds, records ownership transparently and unlocks secondary liquidity. Investors gain visibility into project flows and revenue distributions, all recorded on a public ledger.

Token Design and Revenue Model

• Smart-Contract Issuance — Tokens minted on a compliant blockchain, each representing a fractional right to future carbon-credit sales.
• Revenue Distribution — Proceeds from registry-verified credit auctions or offtake sales flow into a treasury contract. Holders receive quarterly distributions in stablecoin or fiat.
• Governance Rights — Token holders vote on project selection criteria and annual audit firms, ensuring alignment with quality standards.
• Transparency — All token transfers, revenue receipts and distribution events are publicly verifiable via on-chain explorers.

Financing Early-Stage Carbon Projects

Capital raised by the Carbon Credit Token is earmarked for seed- and pilot-stage projects with high sequestration potential:

• Reforestation & Afforestation — Fast-growing species in degraded landscapes.
• Peatland Restoration — Critical basins with millennia-old carbon stores.
• Soil-Carbon Enhancement — Regenerative agriculture practices that build long-term carbon stocks.
• Distributed Renewables — Microgrids and off-grid solar installations that displace fossil generation.

Budgets cover land rights, community engagement, MRV implementation and registry fees. Early-stage financing bridges the gap until credits begin generating revenue.

Access, Liquidity and Reporting

• Subscription Process — Accredited investors complete KYC, sign a token purchase agreement and transfer funds to the treasury contract.
• Secondary Trading — Tokens list on approved decentralized exchanges or regulated digital-asset venues, enabling portfolio rebalancing.
• Performance Tracking — Monthly dashboards display project milestones, MRV results and revenue inflows.
• Tax-Compliance Support — Annual statements detail credit retirements and geographic breakdowns for ESG reporting.

Example: Mangrove Restoration Tokenization

A pilot mangrove project in Southeast Asia issues 100,000 tokens. At $15 per credit, expected annual revenue is $1.5 million. With 10 percent reserved for operational reserves, 90,000 credits underlie token distributions. An investor holding 1 percent of the tokens receives quarterly payments equivalent to 900 credits’ sale proceeds.

Frequently Asked Questions

How do I know projects meet quality standards?
All projects are validated under recognized frameworks (VCS, Gold Standard) and audited by independent MRV firms.

When do distributions begin?
Revenue shares start after the first credit issuance—typically 12–18 months from project initiation.

Can I trade my tokens before credits are sold?
Yes. Secondary markets allow token transfers ahead of revenue distributions, subject to applicable regulations.

What risks should I consider?
Early-stage projects carry development, regulatory and operational risks. Detailed risk disclosures accompany each subscription round.

Disclaimers & Important Considerations

FG Capital Advisors acts as arranger and advisor. Token holdings do not represent equity in underlying projects. Credit-sale revenue depends on MRV outcomes, registry approvals and market demand.

Prospective investors must complete independent legal, tax and financial reviews prior to purchase.