Frequently Asked Questions
Pure Sky is a modern, community-driven nature-based credit registry that is governed by its members. Often referred to as a Decentralized Autonomous Organization (DAO), Pure Sky operates through a decentralized governing body uniting all stakeholders through a common purpose: to provide a nature-based credit approval system.
Pure Sky decisions are governed by a decentralized group of SKY Token holders. The holders of these tokens have governance rights that approve the decisions presented to the membership. This includes enhancements to the Pure Sky Standard, approval of new methodologies, approval of members, and approval or rejection of credit issuances.
The goal of Pure Sky is to: 1) provide an open and transparent registry for nature-based credits, and 2) offer tokenization services for credits to go on-chain for trading. The mission is to align incentives and structure for project developers, buyers and validation bodies to create a high-integrity, blockchain-ready market for carbon and natural assets.
The Pure Sky platform enables:
- project registration and methodology approvals
- credit issuance, and retirement
- member governance through token voting
- validator rewards for specific functions to SKY token holders
Project developers must become a Pure Sky member to open an account on the Pure Sky registry. Before project submission, project developers should:
- review the Pure Sky Standard
- confirm their project’s methodology is an approved Pure Sky methodology
- engage a third-party validation and verification body
- complete Pure Sky’s submission checklist
Contact us to inquire about membership.
Members and investors of Pure Sky are holders of SKY Tokens. SKY Tokens allow holders to:
- vote on proposals and make decisions
- participate in registry submissions (projects and methodologies)
- participate in staking rewards
The total supply of SKY Tokens is 300,000,000. No further tokens can be minted, and the issuer account is permanently blackholed.
This decentralized process is governed is governed on a layer 2 Ethereum blockchain, which stores all of Pure Sky’s financial records and program rules. Blockchains provide transparency so that each investor can see every detail of the company’s history. It’s a record that promotes accountability and verification.
Using carbon as an example, each carbon credit project proposed and considered by Pure Sky is peer-reviewed and thus certified by an open committee of well-qualified individuals in the industry. This means that every carbon credit project in the Pure Sky system is of high quality as an industry standard.
Rewards come from network fees on project registration, issuance, transactions, and insurance. They are not distributed via new token issuance, preserving the fixed supply.
- Issuance Fees – Pure Sky receives fees each time a credit is issued to a registered project.
- Registration Fees – Each time a project requests registration with Pure Sky, the company receives a registration fee.
A portion of the fees are provided to token holders, and the rest are held by the Pure Sky DAO Treasury.
- Project and methodology submissions cost 5,000 of approved stablecoins and are refunded upon approval.
- Issuance costs $0.05 per approved carbon credit.
- Retirement of credits carries no fee.
- A share of fees goes to node operators, while the rest strengthens the Pure Sky Decentralized Autonomous Organization (DAO) Treasury.
Traditional registries are centralized, leading to inefficiencies and trust concerns. Pure Sky decentralizes governance, ensuring transparency and accountability while aligning incentives among developers, validators, and buyers.
- Token holders vote, stake, and help govern the DAO.
- Project developers submit and register new carbon credit projects.
- Corporations and individuals purchase and retire credits to offset emissions.
- Validators run nodes and secure the registry while earning fees.
A carbon credit represents one metric ton of CO₂ (or equivalent GHG) reduced or removed from the atmosphere. Carbon credits have created a marketplace between companies or individuals emitting CO2 and companies or individuals removing CO2 from the atmosphere.
The voluntary carbon credit market is a system where companies, organizations, and individuals can voluntarily purchase carbon credits to offset their greenhouse gas (GHG) emissions. The voluntary market is driven by corporate sustainability goals and climate commitments.
Simply put, a company reaches “net-zero” when the amount of greenhouse gases it emits is matched by the amount it removes – also referred to as being carbon neutral. The way the vast majority of companies are reaching net-zero is through purchasing carbon credits.