“The Integrated Program for Climate Initiatives is designed to develop a distributed network of mitigation contributors based on common principles, rules and criteria, as well as provide an accounting platform, which can achieve absolute emission reduction targets in compliance with quantitative emission limitation commitments. The goal of the Integrated Program for Climate Initiatives is to integrate corporate and regional mitigation initiatives.” (Sustain Europe)

The Integrated Program for Climate Initiatives derives from ongoing subnational and corporate climate initiatives and aims at providing for common investment instruments, which are based on climate change mitigation outcomes including high quality carbon offset credits.

The Integrated Program for Climate Initiatives has served as DAO IPCI genesis program.

White Paper Executive Summary

Ronald Coase has proposed most efficient market-based approach to the problem of social costs. This approach has introduced the concept of limited right to perform activities harmful to the third party and provided basis for market-based distribution of limited resource and for a peer-to-peer settlement of reciprocal damage.

Advance of decentralized arbitration, distributed ledger, triple-entry accounting technologies such as blockchain, crucially decreases transaction costs for peer-to-peer interactions and thus provides for further development of Coase paradigm. Application of blockchain technology to mitigation of collateral socio-environmental damage of economic activities relies on a market concept of decentralized peer-to-peer and public evaluation of negative impact, distribution of liability, and settlement by means of mitigation outcomes.

DAO IPCI in the first instance provides for accounting of claims to limited credit-based or quota-based rights to GHG emissions.

DAO IPCI design objective is to provide common space, common space fabric, common tools and ecosystem that would be universal, reliable, easy-to-use, and transparent and allow diverse stakeholders, including businesses and individuals, to register quantified impacts and pledges, to invest mitigation projects, to offset carbon footprint, to acquire and trade mitigation outcomes, to join existing programs or launch new programs.

As societal costs mitigation-focused blockchain ecosystem, DAO IPCI is smart contracts-based digital environment developed to minimize transaction costs, to make issuance and transfer of mitigation units, including internationally transferred mitigation outcomes, highly reliable, transparent and centralized manipulations-proof.

Decentralization is ensured at the key level of different mitigation programs operating in the same digital environment. There are no technical restrictions as to who may launch autonomous mitigation program in DAO IPCI. Existing mandatory, voluntary, large and small programs of diverse scopes of activities, jurisdictions, as well as businesses, NGOs and individuals may create independent DAO core to implement specific programs and projects and perform transactions in DAO IPCI. Independent mitigation programs within DAO IPCI may interlace and form a web of DAOs choosing modules and protocols they wish to share and have in common with their peers.

Mitigation Token, MITO, and MITO Market are designed to serve as an exchange unit and exchange for whatever asset-based instruments different programs operate with. MITO holders may evaluate and assign cost to virtues and flaws of different programs and their instruments (units) by means of Mitigation Token as an exchange currency.

Furthermore, DAO IPCI architectonics provide for actual interaction of different asset-based systems on the Ethereum blockchain. The modules of external blockchain systems, DAOs, e.g. energy assets-based, may be included into DAO IPCI Core, and reflected in the decentralized application, and vice-versa.

Mitigation Token sole purpose is to provide market exchange operations with environmental units issued to the environmental units’ registries by independent entities under the rules and supervision of operators, which accept MITO policy.

MITO is inherently appropriate and designed for executing DAO IPCI smart contracts, including placing and executing buying and selling of environmental units’ orders, for security deposit contract collateral, MITO market commission fee.

MITO emission implies strict limitation of the potential amount of emission, strict adherence to the interests of the MITO holders, the interests of the issuers of environmental units and participating environmental programs’ compliers.

To avoid dilution and preserve the interests of MITO holders, 50% of MITO newly issued, which will be possible at least one year after initial emission, shall be distributed to existing MITO holders.

MITO emission protocol shall ensure direct correlation of current cap for MITO emission and the sum of environmental units secured and accessible via environmental units’ registries minus the amount of MITO previously issued. Thus, MITO-to-environmental units’ ratio shall be predetermined by the protocol and reach maximum at the stage of ICO, and with growth of environmental units issued further MITO emissions shall be close to 1 with a certain lag in favor of environmental units due to the time needed to agree on and perform further emissions.

Along with global trend toward the increase of value of climate change mitigation outcomes and cost of GHG emissions, this algorithm would support long-term increase of value of Mitigation Token and of DAO IPCI mitigation ecosystem.

Long-term prospects of DAO IPCI development are limited only by its’ functional capacity as the trends are evidently in favor of environmental markets’ and specifically carbon markets’ expansion both in scale and number, linkage and integration with a perspective of ultimate creation of common market space with fungible instruments. DAO IPCI is a prototype of such market environment.

Blockchain Climate Standard (BloCS) Brochure