Decoding 3 Carbon Tokenization Models: Who’s Actually Telling the Truth?
```Warning: Just because a token is labeled “carbon” doesn’t make it green. In the ESG world, credibility lies in traceability—and traceability is earned, not assumed.
Toucan – Fast Liquidity, Blind Trace
Toucan was one of the first platforms to bring Verra credits onto the blockchain. But instead of retiring them in the original registry, they chose to immobilize the credits and mint ERC-20 tokens called TCO2 for on-chain trading.
The main issue: TCO2 does not represent an actual offset. The underlying credit remains active in Verra and can still be used off-chain. This has created significant concerns over double counting and even allegations of enabling carbon fraud.
C3 – DAO-Based Verification But One Layer Short
Unlike Toucan, C3 only accepts carbon credits that have already been retired off-chain. These are then tokenized into assets like $NBO or $UBO, with metadata attached via IPFS.
Pros: C3 supports traceability through public metadata, DAO governance, and open APIs. However, the link between the token and the original certificate is not always clearly verifiable. It still requires trust in the DAO’s ability to perform independent due diligence.
Thallo – The Promising Bridge of Tokenization 2.0
Thallo is building an API + oracle infrastructure to directly connect registries like Verra, Plan Vivo, and Gold Standard with blockchain systems. Their goal is to sync issuance, retirement, and MRV data into smart contracts with real-time updates.
Thallo doesn’t create tokens arbitrarily—they aim to reflect actual, verified registry data. If granted access under the upcoming Verra Tokenization Framework (VTF), Thallo could set a global benchmark for trusted carbon assets on-chain.
Currently, Thallo is piloting with Plan Vivo and is actively participating in international standard-setting discussions.
Quick Comparison: Who’s Trustworthy?
| Project | On-Chain Retirement? | Traceable Metadata? | Verra Approved? |
|---|---|---|---|
| Toucan (TCO2) | ❌ No | ⚠️ Limited | ❌ Blacklisted |
| C3 ($NBO, $UBO) | ❌ Off-Chain | ✅ Yes, via IPFS | ❌ Not officially recognized |
| Thallo | ✅ In development | ✅ Registry-integrated | 🟡 Pending approval |
What’s Next? Follow Trace, Not Hype
Carbon tokens aren’t evil—but tokens without traceability are meaningless. The line between legitimate ESG action and greenwashing lies in proof, not intention.
To ensure traceability, look for:
- On-chain metadata (via IPFS or public oracles)
- Transparent, verified smart contracts
- Direct registry links proving retirement or issuance
Before investing or claiming offsets, always ask: Where was this token minted, and what does it actually prove?