Credits
Units of verified environmental impact — 1 credit = 1 metric ton of recycled material or avoided emissions.
What are credits?
Credits are the tradeable units of verified environmental impact at the end of the Carrot Network's token hierarchy. Each credit represents 1 metric ton of verified impact — either recycled material or avoided greenhouse gas emissions. On-chain, credits are implemented as fungible ERC-20 tokens with decimal precision: they can be issued, held, transferred, purchased, and retired in any amount, including fractions.
Credits are the mechanism through which the environmental work performed by recycling participants becomes a commodity that organizations and individuals can purchase to offset their waste and carbon footprints.
Credit types
The Carrot Network supports two categories of environmental credits. Each category can have multiple on-chain symbols, depending on which methodology issued the credits:
| Category | Description | Example symbol | Issued by | Unit |
|---|---|---|---|---|
| Tokenized Recycling Credit (TRC) | Certified recycled material | C-BIOW | BOLD Recycling | 1 token = 1 metric ton of certified recycled material |
| Tokenized Carbon Credit (TCC) | Avoided greenhouse gas emissions (CO₂e) | C-CARB.CH4 | BOLD Carbon (CH₄) (methane) | 1 token = 1 metric ton of CO₂e avoided |
Not all TRC are C-BIOW — C-BIOW is the credit issued by the BOLD Recycling methodology. Other recycling methodologies could issue TRCs with different on-chain symbols. Similarly, not all TCC are C-CARB.CH4 — C-CARB.CH4 is the methane credit issued by the BOLD Carbon (CH₄) methodology; other carbon methodologies could issue TCCs with different symbols.
Tokenized Recycling Credits (TRC)
TRCs represent certified recycled waste. When MassIDs of a specific material type pass verification under a recycling methodology at an accredited facility, RecycledID certificates are created and credit tokens are minted in a matching amount. The BOLD Recycling methodology issues TRCs with the on-chain symbol C-BIOW. Because MassIDs record the source location of waste creation, TRCs can be traced to specific municipalities — making them a tool for demonstrating compliance with Extended Producer Responsibility (EPR) mandates.
TRCs are material-specific — glass TRCs represent recycled glass, plastic TRCs represent recycled plastic. This granularity allows credit buyers to target specific waste streams that match their product footprints.
Tokenized Carbon Credits (TCC)
TCCs represent greenhouse gas emissions avoided through recycling. They are backed by GasID certificates, which are generated directly from MassIDs by a carbon methodology — independently of RecycledIDs and TRCs. The emissions avoidance is calculated by comparing the recycling outcome to the baseline scenario (what would have happened if the waste went to a landfill or dump). The BOLD Carbon (CH₄) methodology issues TCCs with the on-chain symbol C-CARB.CH4 (methane avoidance from composting). Other carbon methodologies could issue TCCs with different symbols.
TCCs are particularly valuable for biological waste recycling. Composting food waste and green waste prevents methane emissions that would otherwise occur over 20 years of landfill decomposition. The UNFCCC Clean Development Mechanism methodologies used to calculate these avoided emissions demonstrate that composting 2 tons of organic waste can avoid over 2 tons of CO₂e compared to landfill disposal.
Credit lifecycle
Credits follow a clear lifecycle from minting to retirement:
- Minted — When a certificate is created by the
InventoryManager, credit tokens are minted in a matching amount and deposited into the Vault smart contract. - Held — Credits remain in the Vault as available inventory until purchased.
- Purchased — When a buyer purchases credits, tokens are transferred from the Vault to the buyer's wallet. Payment (in USDC) is sent to the
RewardsVaultfor distribution to participants. ACreditPurchaseReceiptNFT is minted as immutable proof of the transaction. - Retired — The buyer can permanently retire credits to claim the environmental offset. Retirement burns the tokens and mints a
CreditRetirementReceiptNFT as proof. Retired credits cannot be re-sold or re-used.
Why credits are fungible
MassIDs and certificates each represent unique batches or outcomes; credits, by contrast, are fungible by design. Every token of a given symbol (e.g. C-BIOW) represents the same unit — 1 metric ton of certified recycled material for that methodology — regardless of which specific MassIDs back it.
This fungibility is what makes credits tradeable as commodities. Buyers don't need to evaluate individual waste batches; they purchase standardized units of environmental impact. At the same time, the full provenance chain is preserved: every credit can be traced back through its certificate to the underlying MassIDs, providing full transparency for auditors and regulators.
Credits and EPR compliance
Because MassIDs record the geographic origin of waste, credits inherit this traceability. A company operating in Brazil can purchase TRCs specifically backed by waste collected in Brazilian municipalities, demonstrating compliance with local EPR regulations. This location-specific traceability distinguishes Carrot credits from generic environmental offsets and makes them directly applicable to regulatory compliance.
Learn about purchasing credits · Learn about certificates · Learn about the token hierarchy