6.1 Seed Pre-Sale to both Clarify Impact and Enable Funding

Through a pre-sale model, projects can raise upfront capital by selling future carbon storage, represented by the Seed token (Smart-contract for Ex-ante Emissions Deletion), for a price in real-world currency (through a stable token) they set. An all-or-nothing campaign model enforced by the Seed smart contract ensures that if the project fails to sell its target of Seeds by a set date, buyers get a full refund and projects do not incur any cost. If the campaign is successful, the project receives the proceeds. As the project progresses, the carbon removal materializes, and Seeds progressively become Carrots at a 1:1 swapping rate.

Buying Seed equates to having access to discounted ex-ante Carrots (albeit riskier) and can be used to hedge or speculate against CRD price fluctuations.