Protections Against Dilution

Minting additional Land NFT tiles dilute rewards for other Land NFT holders

Land NFTs yield a Virtualcarbon reward each month, tied to the carbon sequestration of active Carbon Project NFTs (see the Forest NFT Case Study). The quantity of Virtualcarbon each Land NFT owner will receive will be directly affected by the number of Land NFTs minted.

Solution 1: Milestones

To combat dilution, CarbonHive will launch new Land NFTs only upon meeting certain milestones. Milestones have been designed to be both achievable for CarbonHive, and result in an increasing amount of Virtualcarbon for each Land NFT holder.

Tier	Tiles Minted	Milestones	Estimated Virtualcarbon Yield / NFT / Year
Genesis I	25,000	Land Voucher Launch	0
Genesis II	25,000	Sellout of Genesis I, Minimum 30 days	0
Genesis III	25,000	Sellout of Genesis II, Minimum of 30 days	0
Supporter I	25,000	6,000 Acres Protected*	25.2
Supporter II	25,000	25,000 Acres Protected*	84
Supporter III	25,000	75,000 Acres Protected*	210
Solstice I	75,000	150,000 Acres Protected*	280
Solstice II	63,122	250,000 Acres Protected*	365
Total	288,122

* Note: The above milestone list suggests that only Forest NFTs are launched to make it easier for readers. In reality, CarbonHive is already working with prospective launch partners to launch carbon projects for other project types such as wind and solar. For the purposes of the milestone calculation for other project types, CarbonHive will calculate the CO2e sequestered and calculate the effective acres of forest protected. This will result in the same number of Virtualcarbon / Land NFT / Year.

Solution 2: Bonus Virtualcarbon

To ensure early adopters are fairly rewarded and are less affected by dilution, they will earn a higher reward as compared to later releases. Bonus Virtualcarbon will be yielded by the Genesis and Supporter tiers when compared to the Solstice tier based on the following schedule.

Tier	Bonus
Genesis (all tiers)	30%
Supporter (all tiers)	10%
Solstice (all tiers)	0%