Aavegotchi x KlimaDAO: Protocol Green Fee Integration - Request for Comment


KlimaDAO proposes to integrate opt-in offsetting of on-chain carbon to allow Aavegotchi users to make their protocol utilization carbon neutral.


Using Kyle McDonald’s emissions estimates, the Ethereum network has a carbon footprint of roughly ~18.1M tonnes. Now that the merge has taken place, Ethereum’s footprint looking forward is minimal. However, it’s important for the community as a whole to effectively quantify and take action for historical emissions. Doing so is a win for Ethereum, but also helps push investment and ideation into the growing ReFi (regenerative finance) ecosystem.

Recently, Sushi and KlimaDAO announced the launch of an automated carbon offsetting integration via a ‘Green Fee’, leveraging a technology stack that combines Polygon, Chainlink, Sushi, and KlimaDAO components.

For the first time, users of a core piece of decentralized financial infrastructure – in this case Sushi, a Decentralized Exchange (DEX) – became able to offset the impact of their activity, without having to leave the platform or even interrupt their user experience. Users gained access to opt-in via a switch to compensate for the carbon emissions of their transactions for a nominal fee.

This integration demonstrates how Web3 primitives can unlock climate finance. When embedded directly into blockchain applications, we can

  • put impact in the hands of the user, who can simply ‘opt in’;
  • enable carbon offsetting to happen at the point the carbon emissions occur, with minimal lag time; and
  • make offsetting automatic, programming it into regular actions and helping to increase the volume and scale of carbon offsetting through the Voluntary Carbon Market.

The good news is that taking action on historic emissions is possible in a web3-native way, thanks to KlimaDAO’s development of DeFi rails for climate finance. The KlimaDAO team has developed expertise and unique technology to make the process of removing historical emissions achievable for dApps such as Aavegotchi.


When a Aavegotchi user opts in to use the Green Fee and executes a transaction, Chainlink Automation nodes bundle users’ opt-in transactions to be offset at 24-hour intervals, routing them through the Klima Infinity retirement aggregator. This tool executes carbon offsets automatically, using tokenized carbon credits contained within KlimaDAO’s Sushi liquidity pools. The offset transactions are logged directly on the Polygon blockchain.

The transactions are executed without requiring permissions or activity to execute the offset, making this a fully automated climate solution.

With automation comes scalability: the amount of carbon that is offset scales directly with increased adoption of the Sushi DEX and of opt-ins to the Green Fee. Friction does not increase as volumes scale, and no technical or operational debt is incurred.

Importantly, the components of the tech stack are interchangeable. Sushi operates across 14 different blockchains, so it can roll out the Green Fee across chains and use cross-chain offsetting to draw on KlimaDAO’s Polygon-based carbon liquidity pools. Chainlink Automation likewise supports multiple blockchains. The Green Fee could therefore be integrated across other DEXes and aggregators (such as Uniswap, Quickswap, and 1inch), other decentralized financial infrastructure (trading platforms, lending platforms), and even on Web2 platforms (when sending payments via PayPal, or your airline’s ticketing portal).


When the Merge took place in September 2022, the foundational layer of this tech stack made an evolutionary leap forward in fulfilling the reduction step of the mitigations hierarchy, with the Ethereum network’s carbon footprint dropping by over 99.9%.

Even prior to the Merge, the Polygon network – sitting on top of Ethereum and operating with Proof of Stake consensus since it was launched as MATIC Network in 2017 – was energy efficient, with checkpointing and bridging transactions with Ethereum Mainnet being responsible for over 99% of Polygon’s emissions. With these Ethereum emissions now also minimized, the inherited emissions higher up in the stack are just fractions of those produced by traditional financial infrastructure.

These astounding results profoundly benefit the end user: users opting in to the Sushi x Klima Infinity integration offset carbon credits equivalent to 0.02 MATIC per transaction – which is a cost of around one cent per transaction in USD terms. Even at this extremely low cost to the user, every Green Fee transaction is climate positive: offsetting a single transaction with 0.02 MATIC is 100-fold overcompensating the actual emissions of the transaction.

The Polygon, Chainlink, Sushi, and KlimaDAO Web3 stack, built on top of Ethereum, has driven carbon emissions down to the bare minimum, and is setting the precedent for automated, scalable, and frictionless climate positivity.


KlimaDAO is looking forward to feedback from the Aavegotchi community on this proposal and ways that we can partner together on tackling historical emissions, developing the on-chain credit market, and broader ReFi ecosystem.

We appreciate Offsetra’s carbon.fyi for their work in developing a methodology for on-chain calculations and the countless stakeholders who have refined it over the past year.

Thank you for your consideration.


Ready to have this discussion in a big way. As many in the Gotchigang know, I am the full time community manager at Nori, an incoming carbon removal marketplace on Polygon. Carbon has been something I have mentioned a few times during our community events to begin the awareness.

Happy to see the work KlimaDAO has accomplished thus far. Most of the Aavegotchi liquidity resides in Quickswap, will this auto routing of green offsetting still be possible? Does KlimaDAO offer any novel dedicated carbon removal credits or are these bridged imports of existing credits via traditional registries like Verra or Gold Standard? Thanks for the discussion and looking forward to getting into the carbon weeds with ya.


Nice to meet you! Let’s dive in.

  1. Yes, the green fee will still be possible. Integration doesn’t require substantial resources, capital or movement of liquidity on Aavegotchi’s side.
  2. Can you expand on what you mean by novel dedicated carbon removal credits? Currently there are no carbon removal project credits on chain. I suppose you could say that natural carbon project tokens such as NCT or NBO would help in that category, for example reforestation or IFM credits that are hybrid mitigation + removal. A full breakdown of on-chain carbon can be found here: https://carbon.klimadao.finance/
    2a. Yes, all current on-chain carbon credits are from incumbent registries. This of course can change as the market develops and there is further regulatory clarity.

All for having an optional Green Fee tab added to our marketplace. Not sure how it would work in the gotchiverse. can micro txns be included?
as a team member of ReVesture we won our category of the ReFi hackathon creating a marketplace that has the Green Fee built-in before there was a Green Fee. But our goal is to retire TC02 credits on Toucan now.
We have the ability to impact our markets in great ways. This is one of them. It also allows some savvy investors the ability to offset their Gotchi doings on chain and irl without having to do a bunch of other stuff and provide proof from each company and step along that path. it’s all done for you.
I would love to see Toucan also integrated if possible. could we add any cool ReFi Klima stuff to the mix in the process? like maybe nft’s to display after we have retired X amount of carbon?


Hey json,
Thanks for the well written proposal. I think purchasing carbon at the protocol level is a great idea and will have a much larger impact to the earth than any 1 community member can accomplish by themselves. I also like that there doesnt seem to be much heavy lifting on the dev side. Pixelcraft has never let us down in the shipping department but we, the community, have a responsibility to not crowd their plates and weigh the cost-benefit while they work on our exciting upcoming features.

Recently the community has had many discussions about how we can being more players into the gotchiverse. Marketing is an area that, I’m afraid, gets too little attention. So my question is this - does Klima have a program or other form of incentive to help spread awareness for their partners?

Thanks again for coming to speak to us the other day and I look forward to a great partnership with Klima

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Yes absolutely, KlimaDAO can help to support Aavegotchi with marketing. Aavegotchi would be the first Web3 game to integrate this green fee/climate click solution. Being a first-mover is huge, especially with a community like Aavegotchi. Ultimately I hope we can continually market Aavegotchi as a leader in a cohort of Web3 games that are taking a stance on climate change. Making gaming also green at the same time. That being said if this passes, KlimaDAO will work directly with Aavegotchi DAO members to put together a marketing campaign and we will include it in future talks at major Web3 events.

Check out our marketing on our socials!
Twitter: https://twitter.com/KlimaDAO
Website Blog: KlimaDAO | Resources

Could you please link to the docs about how to integrate? @json

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Yeah let me pull some links together for you. The step by step guide I would need to get from the dev when he wakes up but to my understanding, in some cases, it can be literally one line of code. Below I’ve attached the Sushi github links and the polygonscan links from activity with the contracts. Let me know if anything is unclear.


Polygonscan links: