# Toucan

> The Toucan Protocol aims to facilitate decentralized carbon credit markets.

- Canonical URL: https://iq.wiki/wiki/toucan-protocol
- Categories: Cryptoassets
- Tags: Infrastructure, Layer 2
- Created: 2023-02-03T00:37:40.285Z
- Last updated: 2023-03-10T20:14:22.859Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**Toucan** is a [blockchain](https://iq.wiki/wiki/blockchain) infrastructure project built on the [Polygon](https://iq.wiki/wiki/polygon) network. The goal of the project is to bring environmental assets on-chain, specifically carbon credits. [\[1\]](#cite-id-eeqg02c7asm) [\[2\]](#cite-id-umlkrhcc2jn)[\[3\]](#cite-id-sxm4ea1eam)  
  
**History**  
The Toucan Protocol launched in October 2021, as the infrastructure component of the cryptocurrency Base Carbon Tonne (BCT). In the first month after launching, BCT achieved $2 Billion USD in trading volume.   
  
**How It Works**  
"Bridging": Carbon-credits must be brought on-chain from a verified credit-issuer (e.g. Verra Registry). Bridging creates a ERC20 token (compatible with Ethereum and Polygon).  
  
"Utility": Once the credits are "tokenized" they can be pooled, traded, and used in various carbon-credit projects or markets.  
  
"Burning": To compensate for emissions, the tokens can be permanently removed from circulation.  
  
**Carbon Intensity**  
Toucan is built on the Polygon Network. Polygon is an energy-efficient proof-of-stake blockchain. Proof-of-stake is vastly less resource intensive than proof-of-work blockchains (such as Bitcoin).