Circular Economy Protocol
The Circular Economy Protocol — the technological and financial rules that connect circular economy activity, traceability, certificates, credits, retirement, and settlement.
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What is the Circular Economy Protocol?
The Circular Economy Protocol is the set of technological and financial rules that coordinates circular economy activity on the Carrot Network. It connects supply chain data, chain-of-custody records, certificates, tokenized credits, retirement, rewards, and settlement into one auditable flow.
At its core, the protocol standardizes how real-world circular economy work becomes traceable digital evidence. Waste movements are recorded as MassIDs, verified outcomes become RecycledID or GasID certificates, and those certificates back Tokenized Recycling Credits (TRC) or Tokenized Carbon Credits (TCC). The same protocol flow also governs how credits are purchased, retired, and connected to settlement and rewards distribution.
digital Measurement, Reporting and Verification (dMRV) is the execution and evidence process inside this broader protocol. It runs approved methodology framework criteria against supply chain data and records the evidence that third-party verifiers, buyers, auditors, and the public can review.
What's covered in this section
The Problem
Why the linear take-make-waste economy fails and what needs to change
The Solution
How Carrot turns verified recycling into tradable environmental assets
How It Works
The end-to-end flow from waste collection to credit issuance
Credit Ecosystem Roles
Who does what across standards, methodologies, dMRV, registry, VVBs, buyers, and supply chain participants
Platform Architecture
End-to-end operational flow from supply chain data to credit issuance and retirement
Third-Party Verification
How third parties review methodology compliance, dMRV evidence, and credit integrity
Supply Chain Verification
dMRV, MassIDs, methodology execution, and the recycling supply chain
Credits
MassIDs, certificates, credit lifecycle, on-chain minting, purchase, and retirement
Blockchain Infrastructure
Smart contracts, on-chain flows, and interoperability