4.2 Enabling Both Traceability and Liquidity Simultaneously

The Carrot token architecture is designed to achieve both traceability and liquidity, two conflicting goals in the carbon credit market. This dual objective is achieved through the following unique mechanisms:

1. Token ID Structure: Each Carrot token has a unique ID that indelibly links it to the project that minted it and to the endorser that validated it. This ensures complete traceability of the token's origin and authenticity.

2. Grading System: Carrot tokens are graded by their Endorsers based on the durability of the carbon removal solution they represent. This grade appears explicitly in the token ID and allows for the pooling of tokens from different projects with the same durability characteristics, maximizing market liquidity.