DAO for Paris Agreement

Shanghai Jiao Tong University Blockchain Hub
This document describes a theoretical approach for governance and decentralized ways of committing and tracking NDC under blockchain implementation of Paris Agreement.
Integration to OpenClimate platform demo code here.

The need in DAO (Decentralized Autonomous Organization) for PA

The Paris Agreement brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects, with enhanced support to assist developing countries to do so.
The goal of the PA is collaborative and, hence, requires some sort of governance mechanism for decision making and adjustments of goals. Each party in the PA should have a vote right. Each party should be heard. This can be achieved only in decentralized, immutable, and absolutely transparent setting, which blockchain technology can offer. Moreover, it help to involve in the process regular people who wants to take part in achievement of the main goal - decrease of global warming.

Basics of DAO (Decentralized Autonomous Organization)

The DAO was the first successful attempt to create a full scale truly decentralized organisation, which is transparent, cant be controlled or manipulated by a single party or government, and works for the benefit of their stakeholders.
A DAO is an organization that’s self-governing and not influenced by outside forces: its software operates on its own, with its by-laws immutably written on the blockchain, not controlled by its creators. DAOs are formed by groups of like-minded individuals (or groups, countries, communities) with specific projects and goals in mind. Its identity is formed through consensus. Its authority is defined through voluntary endorsement and, ultimately, network effects. (source:
Original version of the DAO is built on Ethereum blockchain framework and consists of smart contracts.

The Idea

As described in PASC the main function of it in addition of storing NDCs and tracking the nation emissions will be an issue of blockchain tokens which can be freely exchanged to some sort of benefits (for example tax reductions for corporations), thus have a value, and circulated on the open market.
Because of the nation`s level of PA we propose to have two types of DAO smart contracts: 1. on the country level 2. on the PA level itself. They will differ on in terms of participation. Nation's DAO should address the problem of governance inside the country. Paris Agreement DAO will allow for governance on the nations level.
Paris Agreement DAO system
Nation DAO and Paris Agreement DAO will be implemented on Ethereum blockchain framework, but generally blockchain framework agnostic and can be replicated on any other blockchain platforms with available Turing complete state transition virtual machine.

Governance of the Paris Agreement DAO

Each country nominates a representative. These representatives form a PA committee and can submit/vote on PA Proposals.
The voting power of a country is proportional to accumulated GHG reductions compared to the initial state.
Any country can submit a proposal (for example, issue more GHG offset tokens) to a specific smart contract and other countries will have some time to vote (3 months) on it. If a proposal receives majority of votes (more than 51% of offset tokens vote) it should be implemented in software if it affects a PA smart contract system and ratified on the next PA meeting.

Main functions of the Paris Agreement DAO smart contract

  1. 1.
    Receive proposals from the country.
  2. 2.
    Set state for open voting. Emit notifications to Open Climate platform. Start timer.
  3. 3.
    Compute total state of GHG reductions for each country and determine voting power.
  4. 4.
    Receive votes for the proposal and compute the threshold.
  5. 5.
    If a proposal receives the majority of votes it gets approved and published on the Open Climate platform.
The draft code for PA DAO implementation in Solidity here.