The carbon credit retirement effects of KlimaDAO’s decentralized climate protocol are transformative. By tokenizing and retiring carbon credits on-chain, KlimaDAO enhances transparency, liquidity, and efficiency in the voluntary carbon market. Its $KLIMA token, backed 1:1 by carbon credits, incentivizes retirement, permanently removing credits from circulation to offset emissions. Since 2021, KlimaDAO has retired over 600,000 tonnes of verified credits, streamlining a process that traditionally takes months into minutes. The protocol’s advanced tools, like the selective retirement feature, empower users to choose specific credits, boosting market accessibility. KlimaDAO 2.0’s dual-token model further optimizes liquidity and governance, driving climate finance to high-impact projects. Despite challenges like market maturity, KlimaDAO’s transparent, blockchain-based approach accelerates global decarbonization efforts.