Bitcarbon Details

To fund the development and launch of the Carats Smart Contract, the Bitcarbon Foundation, and its subsidiary Bitcarbon Ltd. (a British Virgin Islands company) may sell Bitcarbon tokens to investors.

Bitcarbon are the governance token for the Carats protocol and guide the operations of the Bitcarbon Foundation.

The Carats Smart Contract manages the conversion of Diamond Standard Coin BCC tokens and Diamond Standard Bar BCB tokens into Carats commodity tokens, and the reverse. It maintains the public reserve of BCC and BCB tokens which can be exchanged for Carats, and it manages the Carats Ratio. The Carats Smart Contract collects fees in the form of Carats to pay for the operation of the network, especially to pay the custodians holding the physical Diamond Standard Commodities.

The primary source of fees is a slow increase in the number of Carats per Diamond Standard Commodity, which is the Carats Ratio. The Carats Ratio was initiated as 5000 Carats per 1 Diamond Standard Coin, or 5000:1. If the ratio increases to 5001:1, and there are 1000 Diamond Standard Coin BCC tokens held by the Carats Smart Contract, then 5000 new Carats are created by the Smart Contract. The balance of Carats held by each user does not change, but in order to redeem a commodity, each user will now need one additional Carats. The 5000 new Carats are delivered to the Bitcarbon Foundation which uses these Carats to pay for operations and custody.

The Carats Smart Contract can also charge small fees for conversions and transactions. The transaction fee rates are initially set at zero, to incentivize the conversion of Diamond Standard Commodities to Carats, and the use of Carats for transactions.