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The Carbon Credit Postulates

by Kalium Bank • 9/22/2025

Misty Forest

What are the Kalium Carbon Credit Postulates

The Kalium Carbon Credit Postulates are a structured framework that defines the lifecycle, governance, verification, and exchange mechanisms of carbon credits within the Kalium ecosystem. While building upon the principles of the Paris Agreement’s Article 6, which establishes the international framework for cooperative approaches and the trading of emission reductions, these postulates refine and strengthen the conventions by addressing ambiguities and practical challenges. By enforcing strict scientific standards, transparent governance through the Kalium DAO, and operational oversight by the Kalium Bank, the system ensures credits are credible, non-duplicative, and scientifically verifiable.

The adoption of these postulates provides several advantages:

  • Improved integrity by eliminating loopholes such as double-counting and unverifiable claims.
  • Enhanced transparency via blockchain-backed registries, ensuring public, auditable, and tamper-resistant records.
  • Stronger market confidence through clear rules on fungibility, realisation, and retirement, which address trust gaps in current carbon markets.
  • Scalability and efficiency by integrating centralised exchange functions with decentralized governance, striking a balance between regulatory compliance and innovation.

Together, these postulates not only make carbon credits more viable in a blockchain-enabled, centralized exchange structure, but also set a higher benchmark for global carbon accounting, ensuring that credits represent real, permanent, and verifiable climate benefits.

The Kalium Carbon Credit Postulates consist of ten total postulates which are intentionally designed in a progressive and interdependent order, where each rule builds upon the definitions and requirements of those before it. This structure ensures logical consistency: a carbon credit is first defined, governance is established, permanence is clarified, and only then are verification, states, and realisation introduced. By layering postulates in this way, the framework forms a solid foundation for more complex legislation, compliance structures, and contractual arrangements to be developed without ambiguity. Contracts for trading, execution, or financing of credits can therefore rely on these postulates as primary legal and operational definitions, reducing uncertainty and standardising enforcement. In effect, the postulates function as the constitutional layer of the Kalium credit ecosystem—providing the certainty, transparency, and modularity needed to support future expansion into advanced governance, jurisdictional linkages, and international Article 6 alignment.

Postulate 0 - Carbon Credit

As defined in Postulate 0 A carbon credit is a single unit that represents exactly one metric ton (1,000 kg) of carbon dioxide or CO₂-equivalent (CO₂e) removed, reduced, or avoided from the atmosphere. This definitionis derived off of the guideliness outlined by the UNFCCC in Article 6 of the Paris climate Agreement.

Key Legal Basis The rules governing carbon credits under the Paris Agreement are mainly in Article 6 of the Agreement. There are two main “market/cooperative” mechanisms: • Article 6.2 — “cooperative approaches” using Internationally Transferred Mitigation Outcomes (ITMOs). • Article 6.4 — the Paris Agreement Crediting Mechanism (PACM), which is more of a UN-supervised, centralised mechanism for generating emission reduction / removal units.

Kalium’s redefinition of the carbon credit build on top of the key outlines issued by the Paris accord with additional definitions to enhance the validity and ensure samless complience with scientific consensus and the consnsu of the Kalium DAO. The Kalium adjusted definition of a carbon credit acts to improve on the flaws assicated with the Artical 6 guidelines.

All Kalium carbonb credits assume the same UNFCCC criteria as outlined by Artical 6 with the additional overides of the Kaliuym postulates and core principals.

Postulate 2 - Governance Entities

The governance entity postulate defines the sol responsable entities in defining and upholding the core principals of Kalium.

The key stakeholders mentioned include:

Kalium DAO

  • The Kalium DAO which is a decentralised autonomouse orgenisation build on the blockchain which ensures and upholds the global responsibilities of the Kalium Bank.
  • The Kalium is a globaly accesable election platform which enables the consensus of individuals to vote on key mandates and descisions executed by the Kalium Bank.
  • Kalium DAO membership is defined by the assignation of tokens to a self apointing mmember as well as the unanimous recognitioon and verification of said member by the Kalium Bank.

Kalium Bank

  • The Kalium Bank is the worlds premiar carbon bank responsible for the feeduciary market facilitation of any climate related initiative.
  • The Kalium Bank is responsible for facilitating the exchange, mediating and regulating transactions, and acting as market maker where appropriate, consistent with DAO governance and Article 6 conformity obligations (e.g., preventing duplication and double counting).
  • The Kalium Bank acts as a market maker, creating a regulated environment for the exchange of carbon credits.
  • The Bank’s operational responsibilities include maintaining the registry, enforcing state transitions, recording realisation confirmations, and publishing public audit logs per Kalium DAO policy.

Postulate 3 - Carbon Sequestration

The Intergovernmental Panel on Climate Change (IPCC) does not attribute a single atmospheric “half-life” or uniform duration to carbon dioxide (CO₂), as its removal follows multiple interacting processes rather than a simple decay function. Instead, the IPCC reports that approximately 50 percent of a pulse of CO₂ emissions is removed from the atmosphere within about 30 years, while roughly 30 percent persists for several centuries, and around 20 percent remains for tens of thousands of years. Consequently, the prevailing scientific consensus is that CO₂ should be regarded as having an effectively indefinite atmospheric lifetime from a human policy perspective, since a significant fraction endures for millennia. This underpins the view that CO₂ emissions are essentially permanent on the timescale of human civilization.

Given the general scientific consensus in order for the Kalium Bank to accept any proposed form of carbon sequestriation must be proven to preserve all sequestered greenhouse gasses without human intervention for a period greater than 1000 years. This is to ensuere the bulk of the realised emmisions quoted to be removed have undergone a sufficient amount of time exposure to effectivly decay from the atmosphere. Any period quoted less than the specified tenure or not substantialy proven to last the tenure are not elegable for the classification of sequestriation type.

Postulate 4 - Credit Verification

All carbon credits shall be valid only if issued by the Kalium Bank or by an operator or exchange expressly approved under Kalium DAO-defined standards. Any credit issued outside this authority shall be deemed invalid and without effect within the Kalium ecosystem. Each credit must be inseparably associated with a carbon emissions reduction or removal project conforming to an offset type that has been previously presented to, and formally approved by, the Kalium DAO. Recognition of such offset types shall require prior submission, review, and approval through established DAO procedures. No credit shall be valid unless it can be transparently traced and demonstrably linked to a recognised and approved offset type.

The issuance of credits shall be grounded in scientifically rigorous, project-specific evidence, including, where relevant, baseline determination, monitoring, leakage assessment, and permanence evaluation. Such evidence shall be transparent, auditable, reproducible, and capable of independent confirmation by field representatives appointed by and accountable to the Kalium DAO. Verification shall not be delegated to any entity that receives financial compensation from the issuer or related parties, as such arrangements are incompatible with the impartiality required under Kalium DAO standards. A credit shall not attain validity or executability until this verification has been duly completed and ratified under Kalium authority.

No unverified credits may be exchanged under any circumstances. Any credit listed or transacted on a Kalium-approved exchange must already be verified, or must be formally linked to a verified credit type and authorised by the DAO in a manner consistent with its rules. The exchange or circulation of credits that have not undergone DAO-approved verification, or that rely upon verification obtained through compensated third-party agencies, is strictly prohibited.

Postulate 5 - Credit States

1. Transferable

  • Definition: Credits eligible to be exchanged or sold.
  • Details: Transferable credits are tradable on the centralized blockchain-hosted Kalium Bank Exchange. This ensures conformity with Article 6 regulations, including the prevention of credit duplication and double counting.
  • Requirements: To be transferable, a credit must conform to the approved guides of a carbon credit and receive necessary verification and validation by either the Kalium Bank or, in substantial cases, the Kalium DAO.
  • Note: Credits not yet realised may be traded but carry risk until confirmation.

2. Executable

  • Definition: Credits that have been declared executable by the holder.

  • Rules:

    • Only the holder of the credit can declare it executable.
    • A credit can only be executable if it is in the transferable state and has been realised.
    • No other state can possess re-execution.
  • Consequences: Once executed, credits are no longer transferable and are accounted for under the bearer’s carbon registry.

  • Tenure: The tenure of an executed credit is exactly 1 year, regardless of credit origin or related project.

  • Expiration: Once the tenure expires, the credit is invalidated and can no longer be counted towards the owner’s carbon accounting register.

3. Retired

  • Definition: Credits that have reached the end of their tenure after execution.
  • Rules: Retired credits cannot be traded or reused.
  • Purpose: Serve as a permanent record of past offsets associated with the bearer at the time of execution.

Postulate 6 - Credit Realisation

For credits that do not fall within the classification of sequestration, the concept of realisation constitutes the critical stage at which a credit is confirmed as valid for execution. Realisation occurs when the primary issuer demonstrates, in accordance with Kalium DAO-informed methodologies, that the claimed reduction or removal has in fact taken place. This process ensures that the credit represents an actualised environmental benefit rather than a projected or contingent claim. Only upon the successful completion of realisation, and confirmation by the Kalium Bank or by Kalium DAO where such confirmation is mandated, may a credit transition from a transferable instrument to an executable one.

Non-sequestration credits may be traded within the Kalium ecosystem, enabling issuers to access financing and liquidity prior to realisation. However, these credits cannot be executed until the primary issuer has demonstrated, in accordance with Kalium DAO-approved methodology, that the claimed reduction or removal has occurred and such realisation has been confirmed by the Kalium Bank or, where required, by the Kalium DAO.

Until realisation is complete, non-sequestration credits must be explicitly identified and registered as unrealised in all transactions. Any transfer of unrealised credits must include clear disclosure of the risks inherent to their contingent status, thereby ensuring transparency and preventing their misrepresentation as executable units.

No credit may be executed against an owner’s emissions obligations unless it has been realised. Execution is therefore contingent not merely on issuance or transferability, but on the successful demonstration and confirmation of environmental outcomes. In this way, the integrity of the Kalium system is preserved, ensuring that only verified reductions or removals may offset emissions.

The process of realisation requires evidence that conforms fully with the standards of scientific rigour and independence defined under Postulate 3. Such evidence must be transparent, auditable, reproducible, and independently verifiable under DAO authority. This evidentiary threshold is essential to maintaining confidence in the system, preventing conflicts of interest, and upholding the credibility of credits recognised within the Kalium ecosystem.

Postulate 7 - Credit Uniformity

All verified credits shall be treated as equal in status and value, irrespective of their origin. This principle redefines the structure of the carbon credit landscape established under Article 6 of the Paris Agreement by dissolving the distinction between compliance and voluntary markets. Within the Kalium system, all credits exchanged must be approved, mediated, and regulated by the Kalium Bank or by an exchange expressly authorized by the Kalium DAO.

No verified credit shall hold inherent precedence over another, and each credit unit shall be considered fully interchangeable with any other verified unit. While credits may carry idiosyncratic attributes—such as alignment with particular United Nations Sustainable Development Goals (SDGs) or specific risk factors linked to their origin—such attributes do not affect their fundamental equivalence. Any excess risk associated with a credit must be borne and offset by the issuer.

Unverified credits must be strictly segregated and explicitly identified as such within any Kalium-approved exchange. This separation preserves market integrity and ensures that participants are fully informed of the status and reliability of the credits they transact.

Postulate 8 - Credit Recognition and Invalidation

The Kalium DAO holds ultimate authority over the recognition and invalidation of carbon credits within the Kalium registry. No credit can be deemed valid without Kalium DAO approval, and likewise, no credit can be invalidated except through Kalium DAO governance procedures. This central authority ensures that the integrity of the system is preserved by placing decision-making power in the hands of the collective, rather than any single institution or external actor. The Kalium DAO therefore acts as the final arbiter of credit legitimacy, safeguarding the credibility of the registry as a whole.

While the Kalium DAO retains authority, the operational responsibility for carrying out these decisions lies with the Kalium Bank. The Bank manages the technical and administrative aspects of the system: issuing credits once approved, maintaining registry entries, facilitating transfers between holders, and enacting administrative revocations when directed by the Kalium DAO. In this way, the Kalium DAO provides governance and oversight, while the Bank ensures the orderly functioning of the registry and the execution of Kalium DAO decisions.

If a credit is found to be invalid, whether due to error, fraud, double, counting, or a reversal of the underlying climate benefit, Kalium will prescribe appropriate remediation measures. These may include revoking the credit from the registry, requiring replacement credits from the issuer, or implementing corrective accounting to maintain balance and integrity within the system. By enforcing remediation in such cases, Kalium ensures that the registry remains accurate and trustworthy, preventing invalid credits from being used to offset emissions and maintaining confidence among all participants.

Postulate 9 - Quorum of Approval

Amendments to the core rules that govern recognition, validation, and credit eligibility are treated with exceptional care in the Kalium DAO. Because these provisions form the foundation of the credit system, they may only be changed when there is both a high level of participation and overwhelming support from the community. Specifically, no amendment is valid unless more than 60% of all eligible voting shares take part in the vote, and among those votes at least 80% must be cast in favour of the change. This ensures that alterations to the system cannot be passed by a narrow group or slim majority, but instead reflect the clear will of the wider membership.

Quorum rules play a central role in this process by guaranteeing that decisions are not made without broad participation. If the quorum threshold of 60% is not reached, the vote is automatically invalid, regardless of the outcome. Once quorum is satisfied, the supermajority requirement applies, meaning that four out of every five share votes cast must support the amendment for it to succeed. This dual requirement of quorum and supermajority safeguards against both low engagement and divisive or narrowly supported changes.

Voting membership, weighting, and quorum calculation are already defined in the Kalium DAO’s governance framework. These provisions specify who holds voting rights, how votes are counted, and how thresholds are applied in practice. By establishing clear and transparent rules for participation and decision-making, the DAO ensures that members understand exactly how legitimacy is measured and how collective decisions are reached.

Together, the quorum and supermajority mechanisms create a balance between adaptability and stability. The Kalium DAO retains the ability to update its standards and methodologies when science, technology, or market conditions evolve, but only when such changes command both strong participation and overwhelming consensus. This approach preserves trust in the system while ensuring that its most important rules remain robust and resistant to capture or manipulation.

Postulate 10 - Credit Exchange & Execution

The rules governing exchange, execution, and scientific compliance form the backbone of integrity within the Kalium credit system. By requiring that all transferable credits traded on the Kalium Bank Exchange or other Kalium DAO, approved venues carry explicit registry flags, such as whether they are realised or unrealised, their issuance vintage, or their sequestration status, the system ensures that every participant has full transparency about what they are buying or selling. These flags protect market participants from misrepresentation, support informed decision-making, and prevent the mixing of credits with fundamentally different levels of reliability or permanence.

Execution rules add another layer of significance by tightly controlling when credits may be used to offset emissions. Only credits that are both transferable and realised, or sequestration credits that meet the DAO’s permanence definition and have been properly issued, may be declared executable. This safeguard guarantees that credits used to balance emissions represent actual, verified climate outcomes, rather than unverified promises. In practice, this prevents entities from prematurely claiming environmental benefits and preserves the credibility of the Kalium registry as a reliable accounting system.

The requirement for scientific compliance further strengthens this framework. All evidence used to support exchange, realisation, or execution must meet the verification standards set out in Postulate 7 and be recorded transparently in the registry. This not only ensures the rigour and reproducibility of the data underpinning every credit, but also provides an auditable record accessible to the Kalium DAO and to stakeholders. The combination of transparency and scientific accountability significantly reduces the risk of fraud, double-counting, or inflated claims, which have historically undermined trust in carbon markets.

Together, these rules are significant because they align the economic activity of trading with the scientific and ethical standards of climate accountability. They create a marketplace where credits are not only financial instruments but also verified representations of real-world environmental benefit. By doing so, the Kalium system addresses many of the shortcomings of existing carbon markets and establishes a framework in which confidence, fairness, and scientific integrity are inseparable.