For context, read CAP for VCM first.
While both CAP and Hypercerts are pushing the envelope on impact verification and tokenization, they each bring a unique set of strengths to the table. This writing aims to explore these strengths, highlight the complementarity of CAP and Hypercerts, and propose a collaborative framework to amplify their collective impact.
At first glance, Hypercerts and CAP might seem like two systems serving the same purpose. However, a closer look reveals that they are more like complementary tools in a toolkit: Hypercerts is a spoon, versatile and suitable for a broad range of applications, while CAP is a knife, finely honed for a specific task.
Hypercerts is addressing the critical issue of rewarding public goods retroactively. It operates on the premise that rewarding projects based on their actual impact, rather than mere predictions, can lead to more efficient resource allocation, increased transparency, and ultimately, amplified impact. Hypercerts achieves this by providing a secure and efficient way to issue digital certificates of verified impact. These certificates represent the tangible outcomes, of, abstractly, a series of actions.
Hypercerts is a versatile tool for retroactive public goods funding, while CAP is specifically tuned for the carbon markets. CAP distinguishes itself by making explicit the distinction between "impact claims" and "digital certificates". An impact claim, under CAP, represents a project developer's declaration of a certain amount of carbon credits. Once this claim is verified and delivered, a CAP eco-certificate can be redeemed, representing the realized value of the impact. And, like Hypercerts, CAP is a primitive to build with.
CAP provides a framework for the claiming and verifying of impact before it would, conceptually, become a Hypercert. Tokenized Claims and Stamps unlock decentralized, global prospective funding mechanisms for ecological impact projects.
Given their complementary strengths, it would be highly beneficial to bridge CAP and Hypercerts. This integration could take the form of a module that allows a Hypercert to be minted or redeemed for verified impact on CAP.
Such a module would not only enhance the functionality of both systems, but also foster greater transparency, efficiency, and credibility in the market for public goods funding. It would seamlessly connect the vast array of public goods sectors served by Hypercerts with the specific needs of the voluntary carbon markets addressed by CAP.
Moreover, this integration would allow the prediction markets for future ecological assets enabled by CAP to leverage the auditable and retrospective funding mechanism of Hypercerts. The result would be a more fluid, dynamic, and responsive market for public goods funding, capable of nurturing, growing, and scaling impact proactively.
As we strive to heal our planet and build a more sustainable future, let's leverage the best tools at our disposal. We propose a collaboration between the Hypercerts and CAP teams to bring this vision to life. Together, we can revolutionize the landscape of public goods funding and accelerate our collective impact.
Let's embark on this journey together. Let's combine our efforts, expertise, and creativity to turn this proposal into reality. Let's build a future where impact is not only retroactive, but proactively nurtured, grown, and scaled.
Let's build a framework for proactive public goods funding.