Last updated 8 months ago
The lack of verifiable carbon credit systems in Paraguay's prevents landowners from monetizing sustainable practices, limiting their participation in carbon markets and environmental efforts.
A platform will issue Verra-compliant carbon credits under Paraguay Law 7190/2023 through NMKR, using IoT sensors and Wolfram Alpha to verify carbon sequestration via Aiken smart contracts on Cardano
This is the total amount allocated to High Yield Tokenized Carbon Credits.
Please provide your proposal title
High Yield Tokenized Carbon Credits
Enter the amount of funding you are requesting in ADA
100000
Please specify how many months you expect your project to last
12
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
The lack of verifiable carbon credit systems in Paraguay's prevents landowners from monetizing sustainable practices, limiting their participation in carbon markets and environmental efforts.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
'No dependencies'
Will your project's outputs be fully open source?
No
License and Additional Information
The project will be fully open source under the MIT License, covering smart contracts (Aiken), IoT integration, monitoring processes, and legal compliance. This ensures transparency, security, and community collaboration, while serving as a reusable model for carbon credit and environmental asset tokenization aligned with Paraguay’s Law 7190/2023.
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Environment
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
This proposal innovates by combining IoT sensors with Cardano smart contracts to generate carbon credits in real time. Unlike traditional projects that depend on costly audits and manual reports, IoT devices provide automated, tamper-proof data on soil and biomass, directly tokenized as native assets. This reduces costs, ensures compliance with Paraguay’s Law 7190/2023, and makes credits transparent, scalable, and accessible to small farmers.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP will be deployed on Cardano mainnet and accessible through a public web dApp, with source code and documentation available on GitHub. It will show IoT sensor data from the Paraguay pilot farm, daily logs stored on IPFS, and carbon credit tokens minted as native assets. Users can verify credits on the Cardano explorer and review the full open-source codebase in GitHub for transparency and auditing.
Describe realistic measures of success, ideally with on-chain metrics.
Success is measured through IoT deployment (10–20 sensors operating with ≥95% uptime), on-chain activity (200–300 carbon credit tokens minted on Cardano mainnet and daily reports anchored to IPFS), and platform usage (public dApp live with 100+ visitors in first 3 months). Farmer engagement includes at least 5 onboarded landowners and one buyer agreement. Transparency verified via GitHub repo updates and Cardano explorer links.
Please describe your proposed solution and how it addresses the problem
Comprehensive Carbon Sequestration Platform Using IoT, Wolfram Alpha, and Aiken Smart Contracts integrated with NMKR for Verra-compliant Carbon Credit Issuance on Cardano under Law 7190/2023
This project will use IoT, Wolfram Alpha, and blockchain technology to implement and verify carbon sequestration techniques in Paraguay, ensuring Verra-compliant token issuance under Law 7190/2023.
Carbon Sequestration Techniques Applied to 1 Hectare:
Silvopasture (Trees integrated with livestock grazing)
Sequestration Potential: 3 tons of CO2 per hectare per year.
Process: Trees are planted in grazing areas, sequestering carbon in biomass and soils. IoT sensors monitor growth, livestock activity, and soil health. Data verified via Wolfram Alpha triggers Aiken smart contracts for token issuance through NMKR.
Environmental Benefits: Enhances biodiversity, reduces methane emissions, and increases soil carbon, improving water retention and fertility.
Biochar & Terra Preta (Anthropogenic Black Earth)
Sequestration Potential: 2 tons of CO2 per hectare per year (combined).
Process: Biochar and Terra Preta are applied to improve soil carbon content. IoT devices track soil fertility and carbon levels, and data is verified through Wolfram Alpha before feeding into Aiken smart contracts for credit issuance.
Environmental Benefits: Improves soil health, boosts microbial activity, and enhances water retention, reducing the need for chemical fertilizers.
Conservation Agriculture (No-till farming, cover cropping)
Sequestration Potential: 0.2 tons of CO2 per hectare per year.
Process: Practices like no-till farming and cover cropping minimize soil disturbance, improving organic carbon buildup. IoT sensors track improvements, and data is verified by Wolfram Alpha, triggering Aiken smart contracts for tokenization.
Environmental Benefits: Enhances soil health, reduces erosion, and conserves water, while reducing the carbon footprint of farming activities.
Reforestation
Sequestration Potential: 6 tons of CO2 per hectare per year.
Process: Native tree species will be planted in degraded lands. IoT sensors track tree growth and soil carbon changes, and Wolfram Alpha verifies the data for smart contracts. Reforestation contributes to carbon sequestration, habitat restoration, and ecosystem resilience.
Environmental Benefits: Restores ecosystems, supports biodiversity, and sequesters significant amounts of carbon through tree biomass.
Total Carbon Sequestration Potential for 1 Hectare:
Silvopasture: 3 tons CO2
Biochar & Terra Preta: 2 tons CO2
Conservation Agriculture: 0.2 tons CO2
Reforestation: 6 tons CO2
Total Sequestration: 11.2 tons of CO2 per hectare per year
Issuing Carbon Credits on the Cardano Blockchain:
Data Collection and Verification: IoT devices continuously collect real-time data on carbon sequestration, soil health, and tree growth. The real world data
Wolfram Alpha: Processes and verifies the data, ensuring accuracy before feeding into the blockchain. It is the link
Aiken Smart Contracts: Verified data triggers smart contracts, ensuring that carbon credits are only issued for actual, verified sequestration.
Tokenization via NMKR: After verification, carbon credits are tokenized and made available for trading on the Cardano blockchain, adhering to Verra standards and Paraguay’s Law 7190/2023.
Carbon Credit Value in Paraguay:
Current Market Price: $14 per ton of CO2.
Total Annual Carbon Credit Value per Hectare:
11.2 tons CO2 x $14/ton = $156.80 per hectare per year from carbon credits.
Sustainability:
APY Calculation for per Hectare:
Land Cost in Paraguay: $1,000 per hectare (average).
Carbon Credit Revenue per Hectare per Year: $156.80.
APY:
APY from Carbon Credits: 15.68% per year based on land costs and carbon credit revenue.
Additional Environmental and Agricultural Benefits:
Improved Soil Fertility: Biochar, Terra Preta, and conservation agriculture enhance soil quality, boosting fertility and reducing dependency on synthetic fertilizers.
Enhanced Water Retention: Techniques like silvopasture and biochar improve water retention, making land more resilient to drought, crucial in dryland areas.
Biodiversity and Ecosystem Restoration: Reforestation and silvopasture restore degraded ecosystems, supporting wildlife and improving biodiversity.
Sustainable Farming Practices: Conservation agriculture sequesters carbon while improving farm productivity, reducing erosion, and enhancing water management.
Conclusion:
By implementing these carbon sequestration techniques across 1 hectare of land, 11.2 tons of CO2 can be sequestered annually, generating both environmental and financial benefits with an APY of 15.68%. The integration of IoT, Wolfram Alpha, Aiken smart contracts, and NMKR ensures a transparent, scalable, and efficient system for Verra-compliant carbon credit issuance under Paraguay’s Law 7190/2023. This project will enhance land quality, support sustainable farming, and contribute to global climate goals.
Please define the positive impact your project will have on the wider Cardano community
This project will positively impact the Cardano community by creating an open-source framework for carbon credit tokenization, which can be extended to other Latin American countries. By leveraging IoT devices, Wolfram Alpha oracles, and Aiken smart contracts, we will establish a scalable and transparent system for carbon credit generation under Paraguay’s Law 7190/2023. This framework provides governments, landowners, and enterprises with a verified and legally compliant mechanism to issue and trade carbon credits, promoting environmental sustainability and offering new financial opportunities.
Value to the Cardano Community:
Open-Source Contribution: The project will provide an open-source, fully documented framework that can be replicated and adapted across the entire Cardano ecosystem and Latin Americ
Government Adoption: The framework can easily be used by governments across Latin America, providing them with the tools to manage and incentivize carbon sequestration projects within their own countrie
Economic Opportunities and Diversified Investment: By enabling landowners and governments to tokenize and trade carbon credits, the project opens up new financial opportunities for rural and agricultural region
Increased Transaction Volume and Liquidity: The minting and trading of carbon credits on Cardano will increase transaction volume, creating higher activity on the blockchai
Measuring the Impact:
Quantitative Metrics:
Number of carbon credits issued and tokenized using the system.
Number of hectares of land enrolled in the program.
Trading volume of carbon credits on the Cardano blockchain.
Participation from landowners, enterprises, and governments in Paraguay and other Latin American countries.
Qualitative Metrics:
Feedback from participants, including landowners and government officials, on the platform's ease of use and effectiveness.
Community engagement in improving the open-source framework.
Use of the system in broader environmental projects across Latin America.
Sharing Outputs and Opportunities:
Open-Source Repository: All smart contracts, IoT integration, and legal compliance with Paraguayan governent and Verra compliant sequestration strategy will be made publicly available through a GitHub repository. The repository will include documentation, updates, and allow for community collaboration and contributions.
Workshops and Education: The project team will provide educational resources, such as tutorials, webinars, and documentation, to help governments, developers, and landowners understand the technology. This will promote adoption and extend the framework’s use across Latin America.
Community Engagement and Collaboration: Regular updates and progress reports will be shared with the Cardano community through Catalyst and other forums. We will invite feedback and suggestions from the community to improve the project, encouraging inclusivity and transparency.
This project creates a sustainable and economically viable model for carbon credit generation and trading, directly benefiting the Cardano ecosystem by driving increased transaction volume, liquidity, and diversified investment opportunities. It also demonstrates how blockchain technology can address global environmental challenges while offering attractive financial returns for investors.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
Team Capabilities & Feasibility
Rodrigo Enmanuel González Alonso – Project Lead & Legal Advisor: Licensed lawyer in Paraguay with experience in governance and blockchain legal frameworks. Ensures compliance with Law 7190/2023 on carbon credits and international standards (Verra, Paris Agreement Article 6).
Yaqueline Escobar – Legal & Community Engagement: Lawyer specializing in cooperative structures and community outreach. Leads farmer onboarding, training, and transparent reporting.
Fernando Orue – Legal Support & Compliance: Experienced attorney focused on environmental regulation and compliance. Assists with drafting contracts, credit certification, and local regulatory approval.
Feasibility
The team’s combined legal expertise ensures the project meets Paraguayan environmental law and international compliance frameworks, reducing legal risk.
Their established connections with cooperatives and farmer associations in Paraguay make farmer onboarding feasible at pilot scale (10–20 hectares).
By starting with a small MVP, the project limits technical and financial risk while demonstrating real-world viability.
The open-source approach guarantees transparency, with code, data, and reports available on GitHub and Cardano mainnet.
Milestone Title
Milestone 1: Legal Compliance & Tokenization Design for Verifiable Carbon Credits
Milestone Outputs
Legal Compliance for Verifiable Tokens: Develop the legal complieance structure for carbon credit issuance, ensuring that each token, representing 1 ton of sequestered carbon, complies with Law 7190/2023 and Verra standards.
Baseline Sequestration Model: Submit a model to Verra that establishes the baseline CO2 sequestration levels, depending on the chosen sequestration methods (e.g., silvopasture, biochar application, reforestation).
Tokenomics Design: Design the tokenomics model, detailing how tokens will be issued, governed, and traded, with each token representing 1 ton of carbon sequestration, reflecting the current carbon market price (approx. $14 per ton of CO2).
Regulatory Collaboration: Work with legal experts to ensure that the platform meets all national and international legal standards.
Acceptance Criteria
Legal Complieance: A fully compliant structure developed and approved by Nestor Rodriguez, ensuring that each carbon credit token meets both local and Verra requirements.
Baseline Sequestration Model: A completed CO2 baseline model, validated and submitted to Verra, defining the carbon sequestration methods and anticipated sequestration levels.
Tokenomics Model: A finalized tokenomics model for carbon credit issuance, linked to 1 ton of CO2 sequestration, aligned with market prices and governance structures.
Regulatory Validation: Achieve full legal validation for token issuance, ensuring compliance with Paraguayan and international standards.
Evidence of Completion
Signed Legal Compliance Document with Verra: Upload finalized legal documentation demonstrating compliance with Law 7190/2023 and Verra standards, ensuring each token is backed by verified sequestration data.
Baseline Sequestration Model: Submission of the CO2 baseline model to Verra, including details of the sequestration method, sequestration potential, and project validation.
Finalized Tokenomics Documentation: Upload the completed tokenomics model, outlining token issuance, governance, and market value.
Regulatory Approvals: Upload all regulatory approvals and agreements with governmental bodies to ensure transparency and full legal compliance.
Delivery Month
3
Cost
30000
Progress
30 %
Milestone Title
Milestone 2: IoT Integration and Wolfram Alpha Oracle Setup
Milestone Outputs
IoT devices deployed on 1 hectare of land to monitor carbon capture via techniques such as silvopasture, Terra Preta, and biochar application.
Data pipeline established, connecting IoT sensors to Wolfram Alpha for validation of soil carbon levels and biomass growth.
Wolfram Alpha oracles set up for real-time data feeds into Cardano’s blockchain.
Acceptance Criteria
IoT Deployment: Successful installation and operational IoT devices transmitting real-time data on carbon sequestration.
Data Validation: Data validation workflow established between IoT devices and Wolfram Alpha oracles.
Oracle Integration: Verified data fed into the Cardano blockchain using Aiken smart contracts.
Evidence of Completion
Deployment logs and operational data from IoT devices.
Validation reports from Wolfram Alpha, confirming the accuracy of real-time data.
Screenshots or logs showing integration with Cardano through Wolfram Alpha oracles.
Delivery Month
6
Cost
30000
Progress
60 %
Milestone Title
Milestone 3: Aiken Smart Contract Development & NMKR Token Issuance
Milestone Outputs
Aiken smart contracts developed for carbon credit issuance based on verified data from IoT and Wolfram Alpha.
Token issuance mechanism developed through NMKR to create and trade tokenized carbon credits.
Smart contracts deployed on the Cardano testnet for functionality testing.
Acceptance Criteria
Smart Contract Deployment: Successful development and deployment of Aiken smart contracts on Cardano’s testnet.
Token Issuance: Token issuance mechanism built using NMKR, with functional tests confirming proper operation.
Audit: Security and functionality audits of the smart contracts, ensuring compliance and risk mitigation.
Evidence of Completion
Testnet logs showing successful deployment of smart contracts.
Token issuance mechanism documented and available for review.
Independent audit reports confirming the security and functionality of the smart contracts.
Delivery Month
9
Cost
30000
Progress
90 %
Milestone Title
Final Milestone: Full Integration, Token Minting, and Project Close-out
Milestone Outputs
System Integration: Complete and test the integration of IoT data collection, Wolfram Alpha for data validation, Aiken smart contracts for carbon credit verification, and NMKR for token issuance.
System Testing: Ensure smooth operation from real-time data collection to token issuance.
Minting Preparation: The system will be prepared to mint carbon credits once the first ton of carbon sequestration is verified.
Developed Platform: Full-stack development of web portal with react for front-end and node.js for back-end
Final Report and Video: A project close-out report and video will be created to document the project’s completion and demonstrate the platform's functionality.
Acceptance Criteria
Full Integration: Successful integration and functionality of IoT devices, oracles, smart contracts, and token issuance on NMKR.
Token Minting Readiness: System is fully prepared for minting once the first ton of carbon sequestration is achieved and verified by the platform.
Website: Functioning website with front-end and back-end complete
Project Close-out: A detailed report and video documenting the project’s development and future token issuance.
Evidence of Completion
System Logs: Logs showing the successful integration and functioning of the complete system.
Minting Preparation: Confirmation of readiness to issue carbon credits upon the verification of the first ton of carbon sequestration.
Website: Link to website wtih all parts integrated
Final Report and Video: Upload the final project report and demonstration video to Catalyst and share with the Cardano community.
Delivery Month
12
Cost
10000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Legal Compliance (15,000 ADA)
Legal Services (10,000 ADA): Legal review, documentation, and compliance with Law 7190/2023, led by legal experts (drafting, contracts, approvals).
Government Filing & Approvals (5,000 ADA): Submission and regulatory fees for credit certification in Paraguay.
IoT Integration & Oracles (20,000 ADA)
IoT Devices & Sensors (12,000 ADA): Pilot deployment of soil/biomass sensors across selected hectares.
Oracle Integration (8,000 ADA): Subscription and setup of Wolfram Alpha oracles to verify IoT data streams.
Aiken Smart Contract Development (25,000 ADA)
Development (20,000 ADA): Smart contracts for verification, tokenization, and automated issuance of credits.
Code Auditing (5,000 ADA): Independent audit for transparency and security.
Token Issuance & NMKR Integration (12,000 ADA)
NMKR Services (8,000 ADA): Token issuance, setup, and verification.
Integration (4,000 ADA): Technical connection with IoT + oracles for seamless workflow.
Project Management & Reporting (13,000 ADA)
Project Management (8,000 ADA): Oversight, coordination, and delivery across legal and technical teams.
Reporting & Documentation (5,000 ADA): Open-source updates, community reporting, and stakeholder materials.
Publicity, Marketing & Engagement (10,000 ADA)
Marketing (6,000 ADA): Outreach to landowners, stakeholders, and buyers.
Workshops (4,000 ADA): Educational sessions for farmers, governments, and investors.
Budget Overview
Legal Compliance: 15,000 ADA
IoT Integration & Oracles: 20,000 ADA
Smart Contract Development: 25,000 ADA
Token Issuance & NMKR: 12,000 ADA
Project Management & Reporting: 13,000 ADA
Marketing & Engagement: 10,000 ADA
Total: 100,000 ADA
How does the cost of the project represent value for the Cardano ecosystem?
This project delivers strong value by combining legal compliance, IoT innovation, and blockchain transparency within a lean 100,000 ADA budget. Funds are allocated across essential categories only: legal (15%), IoT + oracle integration (20%), smart contracts + audit (25%), token issuance (12%), management + reporting (13%), and outreach (10%). Costs are industry-weighted and trimmed from the original 126k ADA without compromising quality.
By focusing on an MVP (10–20 hectares, 500–1,000 credits), the project proves feasibility at small scale before expansion, minimizing risk. The integration of IoT devices with Cardano smart contracts creates tamper-proof, verifiable credits, ensuring market credibility and higher sale value. Open-source reporting, IPFS logs, and on-chain transactions maximize transparency for both the Cardano community and buyers.
Every ADA spent contributes directly to deploying hardware, writing smart contracts, ensuring legal compliance, and educating stakeholders. This approach balances cost efficiency with innovation, positioning Cardano as a leader in verifiable carbon markets and enabling a clear path to profitability through credit sales and future scaling.
Terms and Conditions:
Yes
Team credentials: https://drive.google.com/drive/folders/17PaT4iuro8SyORfhMxQXWBYwOfVvcRjl?usp=drive_link
Rodrigo Enmanuel González Alonso – Project Lead & Legal Advisor
Licensed lawyer in Paraguay specializing in environmental and blockchain law. Leads project strategy, ensures compliance with Law 7190/2023, and aligns tokenized credits with Verra and Article 6 frameworks.
Yaqueline Escobar – Legal & Community Engagement
Lawyer with expertise in cooperative structures and governance. Manages farmer and cooperative onboarding, community training, and transparency reporting.
Fernando Orue – Legal Support & Compliance
Attorney focused on environmental regulation. Provides compliance checks, contract drafting, and certification support for carbon credit issuance.
Technical Development (Subcontracted, already engaged)
IoT Integration Specialists: Deploy and manage sensors for soil and biomass measurement.
Blockchain Developers (Cardano): Build Aiken smart contracts, mint/burn policies, and dApp integration.
Web Developer / Dashboard: Create public portal with explorer links, IPFS data, and real-time IoT metrics.