Glossary

Key terms used throughout the Carrot Network documentation.

A

Accreditation — The formal process that verifies a Recycler, Network Integrator, or other participant meets Carrot Network standards.

Additionality — A project activity that reduces net GHG emissions below the level that would have occurred without the project (the baseline scenario).

AMS-III.F — A UNFCCC Clean Development Mechanism methodology for avoided methane emissions from composting. The external, validated methodology behind the BOLD Carbon (CH₄) framework.

Aerobic composting — A process for producing nutrient-rich compost through aerobic (oxygen-present) decomposition of organic matter. Produces little to no methane compared to anaerobic decomposition in landfills.

Attribute — See Metadata. The terms attribute and metadata are used interchangeably in Carrot documentation to refer to the key-value pairs attached to events.

Auditor — An independent, third-party business, organization, or consultant who audits and accredits participants and facilities for the Carrot Network. See Independent Verification.

B

Baseline emissions — The GHG emissions that would occur if waste were disposed of through standard methods (landfill, dump site) rather than recycled or composted. Used to calculate avoided emissions.

Bin Custodian — A supply chain participant (B) who manages collection bins or drop-off points where Waste Generators deposit recyclable materials. See supply chain.

Blockchain block explorer — A third-party web interface for viewing raw on-chain data (transactions, contract calls, event logs) on a public blockchain. Carrot Network transactions can be verified via any blockchain block explorer (e.g. PolygonScan for Polygon PoS, which Carrot currently uses) without relying on Carrot's infrastructure. Distinct from the Carrot Explorer, which combines that on-chain data with platform data (methodology definitions, rule execution, accreditations) for a domain-focused view.

BOLD — Breakthrough in Organics Landfill Diversion. A family of methodologies on the Carrot Network for verifying organic waste diversion. Carrot provides the infrastructure; methodology frameworks and applications are developed by third parties. See BOLD Recycling and BOLD Carbon (CH₄).

C

CaA — Carrot Agentic Advisor. An AI layer that identifies opportunities for methodology, data quality, and process improvements across the ecosystem. See Methodology Ecosystem.

CaE — Carrot Analytic Engine. An ML-based layer that continuously monitors dMRV data, detecting anomalies and suspicious patterns in supply chain and methodology data. See Methodology Ecosystem.

Carrot Explorer — The public interface of Carrot's verification platform at explore.carrot.eco. Provides a transparent, user-friendly view of environmental data and audit trails — both on-chain data (MassIDs, certificates, credits, retirement records) and platform data (methodology definitions, rule execution, accreditations). On-chain data is also verifiable by anyone via any blockchain block explorer, without relying on Carrot's infrastructure. The registry function of the Carrot Network is described as the "public credit registry" (lowercase); "Carrot Explorer" refers specifically to the UI.

Carrot Foundation — A foundation in Switzerland building the Carrot Network. Mission: to accelerate the transition to a resource-efficient, low-carbon, and inclusive circular economy.

Carrot Network — A standard and registry for circular economy environmental credits, with dMRV infrastructure for independent, third-party verification. Enables the measurement, verification, issuance, and retirement of environmental credits, with automatic distribution of credit sale proceeds across the value chain.

Carrot Store — A consumer experience at store.carrot.eco for purchasing environmental impact. Offers intention-based products (e.g. For me, For my family) that result in retired credits — a simple way for individuals to take action without choosing methodologies or tonnage.

Category — The broadest classification level for a document in the Carrot API. For supply chain integrations, the category is typically MassID. See Waste Classification.

C-BIOW — The ERC-20 token symbol for Tokenized Recycling Credits (TRC) issued by the BOLD Recycling methodology. 1 token = 1 metric ton of certified recycled bio waste. Other recycling methodologies may issue TRCs with different symbols.

C-CARB.CH4 — The ERC-20 token symbol for Tokenized Carbon Credits (TCC) issued by the BOLD Carbon (CH₄) methodology (methane avoidance from composting). 1 token = 1 metric ton of CO₂-equivalent emissions avoided. Other carbon methodologies may issue TCCs with different symbols.

CDM — Clean Development Mechanism. A UNFCCC framework that allows emission-reduction projects in developing countries to earn certified emission reduction credits. BOLD Carbon uses CDM Tool 04 v08.1 waste categories to classify waste types for emission factor assignment. See Supported waste codes.

Certificate — A soulbound NFT representing a single MassID that has passed methodology verification. Two types: GasID (emissions avoided) and RecycledID (material recycled).

Chain of custody — The complete record of every participant who has handled a batch of waste material, from source to certified recycling. Recorded in each MassID.

Circular economy — A system where materials never become waste and nature is regenerated. Products and materials are kept in circulation through reuse, refurbishment, remanufacture, recycling, and composting.

CO₂e — Carbon dioxide equivalent. A standard unit converting all greenhouse gases to carbon dioxide equivalents using Global Warming Potential (GWP). Measured in metric tons (t-CO₂e).

Community Impact Pool — A collective fund (CP) for socio-environmental projects in the territory where recycling took place. Receives discounted reward amounts from scenarios such as incomplete onboarding or Large Business classification. Over time, the Pool will evolve toward progressive community participation in its governance. See Rewards Distribution Policy.

Credit — A fungible ERC-20 token representing 1 metric ton of verified environmental impact. Two categories: TRC (tokenized recycling credits, e.g. C-BIOW from BOLD Recycling) and TCC (tokenized carbon credits, e.g. C-CARB.CH4 from BOLD Carbon (CH₄)). Each methodology issues credits under its own on-chain symbol.

Carrot dMRV Standard — The five core principles that every methodology on the Carrot Network must follow: integrity & traceability, additionality & verifiability, standardization & comparability, interoperability & automation, and transparency & auditability. See Carrot dMRV Standard.

Crediting system — The circular economy crediting system encompassing a standard (methodology governance), a public credit registry, and dMRV infrastructure for independent, third-party verification.

Credit retirement — The permanent removal of credit tokens from circulation. When a buyer retires credits, the tokens are burned and a CreditRetirementReceipt NFT is minted as immutable proof. Retired credits cannot be re-sold or re-used. See Purchasing Credits.

D

dMRV — digital Measurement, Reporting and Verification. The Carrot Network's protocol for ensuring every recycling claim is backed by real-world evidence. See dMRV.

Digital evidence package — An organized set of data, documents, logs, versions, and validation results produced during dMRV execution; supports audit and governance.

Document — The root data structure in the Carrot API representing a traceability record. A document stores identity and classification fields (category, type, subtype); state changes are recorded as appended events on its timeline. Each document receives a unique identifier. See Core Concepts.

E

EPR — Extended Producer Responsibility. An environmental policy that holds producers responsible for managing their products through the entire lifecycle, including post-consumer disposal and recycling.

ESG — Environmental, Social, and Governance. A corporate reporting and compliance framework measuring an organization's sustainability practices. Organizations and individuals purchase TRCs and TCCs to meet ESG commitments.

Event (dMRV) — An operational occurrence in the methodology flow that requires defined inputs and validations per the MvF/MvA.

F

FIFO — First-In-First-Out. The inventory management method used at processing facilities — the earliest MassIDs in a facility's inventory are processed and credited first.

G

Geographic Annex — A companion document that provides the local specification for every territorial element in a Methodology Verification Framework (MvF). Maps local regulations, material classification codes, required documentation, emission factors, and eligibility criteria to the functional requirements declared in the framework. The MvF plus a Geographic Annex forms a complete, implementable specification for a given market. See MvF — Geographic adaptability.

GasID — A certificate type issued under a carbon methodology that quantifies greenhouse gas emissions avoided through waste diversion. Under BOLD Carbon (CH₄), GasIDs generate C-CARB.CH4 credit tokens at minting; other carbon methodologies may use different symbols.

GWP — Global Warming Potential. A measure of how much heat a greenhouse gas traps relative to CO₂. Methane (CH₄) has a GWP of 28 over 100 years.

H

Hauler — A supply chain participant (H) who transports waste between locations — from collection points to processors or recyclers. May include both local and long-distance haulers. See supply chain.

I

Ibama — Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Brazilian Institute of Environment and Renewable Natural Resources). Publishes the Brazilian List of Solid Waste (Lista Brasileira de Resíduos Sólidos, per IN nº 13/2012), which assigns 6-digit classification codes to waste materials. BOLD Carbon uses these codes for waste classification. See Supported waste codes.

Independent Verification — The practice of using third-party entities (VVBs, auditors) to validate methodology compliance, facility accreditation, and credit integrity — independent from Carrot's platform operations. Encompasses four levels: facility audits, accreditation, MvF validation, and dMRV execution.

K

KYC — Know Your Customer/Client. The mandatory process of verifying participant identity before network participation.

M

MassID — A unique digital asset (soulbound NFT) created when waste is identified and measured. Records material type, weight, and chain of custody. The foundation of the Carrot Network's verification system. See MassIDs.

Merkle proof — A cryptographic method used for privacy-preserving rewards distribution, allowing participants to claim rewards without exposing full distribution details on-chain.

Metadata — Key-value pairs attached to events that provide contextual information about an operational action — for example, date, location, vehicle, operator, or weight measurement. Also called attributes. See Data Formats.

methodology — A validated scientific methodology that underpins environmental credit generation. Always backed by third-party validation. The scientific basis is translated into an operational methodology framework (MvF), which is then implemented as an MvA. See Methodologies.

methodology execution — The platform's process of running methodology verification: the MvA executes the methodology framework's rules on supply chain data to produce verified outcomes (MassIDs, certificates). See Methodology Execution.

methodology framework — The full operational framework (MvF) — rules, requirements, and documentation — that translates a validated methodology into executable dMRV logic. See MvF.

methodology rules — The verification rules defined in a methodology framework (MvF) and implemented/executed by the MvA. See Methodology Execution and MvF.

MvA — Methodology Verification Application. The software implementation of a methodology framework (MvF) that automates rule validation and verification. See MvA.

MvA Developer — The engineer who implements methodology frameworks in code (the MvA). See MvA and the MvA Developer Guide.

MvF — Methodology Verification Framework. The specification document that defines the rules, calculations, and verification criteria for a particular methodology. See MvF.

MvF Author — The specialist who creates methodology frameworks. See MvF and the MvF Author Guide.

MyCarrot — The buyer's portal in the Carrot ecosystem, available at my.carrot.eco. Provides an impact dashboard with accumulated metrics, purchase history with certificate details, and audit trails linked to the Carrot Explorer. Requires no blockchain knowledge. See Purchasing Credits.

N

Network Integrator — A third-party software application that submits supply chain data to the Carrot Network via the API. See Network Integrators.

P

PAYT — Pay-As-You-Throw. A waste management pricing model where households and businesses pay for waste collection based on the amount they generate — incentivizing source sorting and recycling. See The Solution.

Processor — A supply chain participant (P) who sorts, accumulates, or pre-processes waste materials before they reach a certified Recycler. See supply chain.

Protocol — A domain-specific set of technological and financial rules that groups related methodologies and their economics within the Carrot Network. The first protocol covers circular economy (reverse logistics, recycling, composting).

Progressive community participation — The Carrot Foundation's approach to gradually expanding community participation in ecosystem governance as the network matures, through three phases: engagement, consultative, and deliberative. See Governance.

Proof-of-Authority (PoA) — The trust mechanism in the Carrot Network that ensures data integrity through three layers: self-policing via economic incentives (participants lose rewards if data is fraudulent), facility accreditation conducted by independent third-party auditors, and network oversight by the Carrot Foundation which can suspend or disqualify bad actors. See dMRV.

Proof-of-Physical-Work (PoPW) — Evidence that real-world recycling work was performed, recorded through supply chain events and validated at each transfer point in the supply chain.

Proof-of-Provenance (PoP) — Evidence that tracks the origin and journey of waste materials from source to certified recycling, recorded in MassIDs.

R

Recycle-to-Earn — The Carrot Network's incentive model where every verified participant in the recycling supply chain receives rewards proportional to their contribution — turning recycling into a rewarded economic activity.

RecycledID — A certificate type issued under a recycling methodology that verifies a specific quantity of waste was certified recycled. Under BOLD Recycling, RecycledIDs generate C-BIOW credit tokens; other recycling methodologies may use different symbols.

Recycler — A processor that has been accredited to perform certified recycling for a specific waste type. Only accredited Recyclers can trigger credit generation. See supply chain.

Registry (Carrot's role) — Carrot issues, tracks, and retires environmental credits on a public blockchain ledger. The blockchain provides public, permanent, and independently verifiable records. Distinct from the Standard role — Carrot holds both. See The Registry.

RFP — Request for Proposals. The formal mechanism through which Carrot sources new contributions to the ecosystem — from methodology development (MvF + MvA) to infrastructure projects and technology solutions. Each RFP defines scope, eligibility criteria, evaluation matrix, timeline, and deliverables. Six types (A--F) cover different contribution needs: problem-solving, AMC projects, MvF builds, MvA builds, technology solutions, and open calls. See the RFP Process for the full lifecycle and type descriptions, and the RFP Participation Guide for evaluation criteria and submission instructions.

S

Soulbound — A property of NFTs meaning they cannot be transferred between wallets. All Carrot Network NFTs are soulbound, ensuring the audit trail is permanent.

Standard (Carrot's role) — Carrot acts as a standards body for domains where no established global standard exists — for BOLD Recycling, Carrot is the standard. For domains with established standards (e.g. carbon under UNFCCC AMS-III.F), Carrot provides dMRV infrastructure and registry while the methodology framework references the external standard. The Carrot dMRV Standard applies to all methodologies on the network. Distinct from the Registry role — Carrot holds both. See The Standard.

Subtype — The most specific classification level for a document, refining the type. For example, within type Organic, subtypes include Food Waste, Garden Waste, Industrial Sludge. Accepted subtypes depend on the methodology. See Waste Classification.

T

TCC (C-CARB.CH4) — Tokenized Carbon Credit. A fungible credit representing 1 metric ton of CO₂-equivalent emissions avoided through waste diversion. The on-chain symbol C-CARB.CH4 is used for TCCs issued by the BOLD Carbon (CH₄) methodology (methane); other carbon methodologies may issue TCCs with different symbols. See credits.

Timeline — The chronologically ordered sequence of events recorded on a document, representing the full operational history of a mass from origin to final destination. Visible in the Carrot Explorer.

Tracking ID — The unique public identifier assigned to each document in the Carrot platform, used to look up the record in the Carrot Explorer.

TRC (C-BIOW) — Tokenized Recycling Credit. A fungible credit representing 1 metric ton of certified recycled material. The on-chain symbol C-BIOW is used for TRCs issued by the BOLD Recycling methodology; other recycling methodologies may issue TRCs with different symbols. See credits.

Type — The mid-level classification for a document, identifying the primary material or process class (e.g. Organic, Plastic, Paper, Glass). See Waste Classification.

U

USDC — USD Coin. A stablecoin pegged to the US dollar, used in the Carrot Network for credit purchases and rewards distribution. Provides participants with stable value without cryptocurrency price volatility.

V

Validator — The receiving party in a material transfer who confirms the content (weight, quality, source) and updates the MassID. In most supply chain events, the receiver acts as the Validator. See dMRV.

Vault — The smart contract that holds all soulbound NFTs (MassIDs, certificates, receipts) and credit token inventory on behalf of the network. See Smart Contracts.

VVB — Validation/Verification Body. An independent, third-party entity that provides external assurance for the Carrot ecosystem — from methodology validation to evidence review. See Independent Verification for full scope and responsibilities.

W

Waste Generator — A supply chain participant (G) — the person or business that produces waste. Identifying the Waste Generator in the chain of custody is critical: when present, all participants receive full rewards; when absent, discounted payouts apply. See supply chain.

Z

Zero Waste — The conservation of all resources by means of responsible production, consumption, reuse, and recovery of products, packaging, and materials without burning and with no discharges to land, water, or air that threaten the environment or human health. Goal: reduce waste to landfills by more than 90%.