Toucan Protocol has announced an update to the NCT standard. This means that the NCT basket criteria on Regen Ledger must be updated to remain in alignment.
What is the change in NCT criteria announced by Toucan?
In order to ensure all nature-based TCO2s have the same inclusion eligibility in NCT on the Polygon, Celo, and Regen Network chains, the NCT standard criteria change removes the rolling vintage policy. Practically, this means that all nature-based TCO2s 2012 vintage and newer will be eligible for inclusion in NCT. This decision was made by Toucan Protocol in an effort to maintain work done bringing carbon credits to as many chains and ecosystems as possible, scaling ReFi to accelerate on-chain climate action.
Technical Upgrade Required on Regen Ledger:
In an effort to prevent a blocker on the upgrade to Regen Ledger 5.1, the message MsgUpdateDateCriteriaResponse was added to the Regen Ledger 5.1 release. This implementation allows Toucan’s NCT basket criteria update to be implemented without a coordinated software upgrade/chain halt.
If passed, the proposal to change the NCT basket criteria will execute a message that updates the minimum date for NCT eligible credits to January 1, 2012, allowing all nature-based TCO2 credit’s continued eligibility for NCT.
Given the sense of urgency to ensure that NCT criteria on Regen Ledger, Polygon, and Celo are identical, this discussion will end and the on-chain proposal will go up in three days, on Saturday, April 8th at 3pm.
Branch Out has voted no with veto on this proposal.
We understand the need for interoperability for a token like $NCT to function.
However we take issue with doing so by lowering the quality of the $NCT basket criteria on the Regen Ledger, by allowing progressively older vintages to be included in the pool.
Although this is a minor change, we feel the speed with which it was proposed (without the customary 7 days for discussion) & rubber-stamped (without any consideration for how the vintage criteria could have instead been improved across other chains) reflects a broader issue with how the governance of the $NCT has transpired.
To be clear, we are frustrated with expedience taking precedence over due diligence and greater transparency with regard to the need for token vetting to prevent harmful credits from being issued in the $NCT basket and inaccurately presented as capable of effectively offsetting emissions.
We have amended our previous comment here to account for our confusion that the $NCT could be launched prior to this software upgrade being approved, despite it being presented as necessary for interoperability.
When the community voted for our Cimate Wiki proposal to be integrated within the Regen Network, that included substantial integration with both the Marketplace and Registry.
We were not meaningfully included in either of these functions prior to the launch of $NCT, despite our best efforts to publicize our report of Climate Wiki research and have it ‘make a difference’ in ensuring RND lived up to its own promise to issue the $NCT as a basket of “premium quality.”
Until and unless a substantial change is effected in terms of Branch Out’s relationship with RND, which would require a MOU that delini
I support the shifting of the basket criteria in order to ensure that the NCT criteria across blockchains remains in parity.
Since Toucan Protocol governs the NCT criteria, this is simply a technical upgrade to ensure NCT on Cosmos and NCT on Polygon and Celo are identical. Without the NCT criteria as identical, NCT will not be able to maintain its fungibility as a token standard, which is a requirement for all fungible tokens.