# Sproutly CO₂ Burn

Sproutly introduces a structural, organisation-led offset mechanism known as the Company CO₂ Burn. This program ensures that staking $SEED tokens not only benefits the individual holder, but also results in direct, measurable climate action at the protocol level.

### **How it works**

Every quarter, Sproutly commits to a large-scale $aCO2 token burn, proportional to the total amount of tokens staked across the ecosystem. This burn is tied to real-world carbon offsetting: a direct and traceable removal of CO₂ from the atmosphere through certified agroforestry systems.

As a result, every staked $SEED token contributes to automatic climate impact, without any action required from the token holder.

### A Token with Real Impact

This mechanism transforms $SEED from a utility token into a climate-positive asset. Simply by existing and being staked, the token generates environmental value. It positions $SEED as one of the few crypto assets with intrinsic, protocol-backed sustainability.

To ensure that the Company CO₂ Burn reflects the full climate impact of the $SEED ecosystem, Sproutly includes in its quarterly burn calculation not only actively staked tokens but also those that have been converted into company shares via the Token-to-Share Conversion program.

This guarantees that no carbon offset is lost, even when tokens are permanently removed from circulation through conversion. The result is a consistent and verifiable CO₂ burn rate that remains aligned with the total value committed to the ecosystem.

### Measurable Impact on UN SDGS

The Company CO₂ Burn contributes to nine of the seventeen United Nations Sustainable Development Goals (SDGS). Each token burn is backed by real, on-the-ground impact, verified through field reports and third-party certifications.

The following SDGS are actively supported by Sproutly’s agroforestry operations:

* SDG 1 – No Poverty\
  Fair compensation and support for local farmers improve long-term financial stability.
* SDG 2 – Zero Hunger\
  Integration of food crops into agroforestry systems improves food security in rural regions.
* SDG 6 – Clean Water and Sanitation\
  Enhanced soil water retention and watershed protection improve water quality and availability.
* SDG 8 – Decent Work and Economic Growth\
  Sustainable jobs are created through planting, maintenance, and training programs.
* SDG 9 – Industry, Innovation and Infrastructure\
  Blockchain, geolocation, and satellite data ensure transparent CO₂ tracking.
* SDG 10 – Reduced Inequalities\
  Projects actively include indigenous and marginalised communities, promoting social equity.
* SDG 11 – Sustainable Cities and Communities\
  Regenerative ecosystems strengthen local resilience and improve living conditions.
* SDG 13 – Climate Action\
  Large-scale tree planting directly contributes to long-term CO₂ removal.
* SDG 15 – Life on Land\
  Restoration of biodiversity, soil health, and ecosystems through regenerative planting.

### Transparency & Reporting

Sproutly’s partner (Carbify) publishes a Carbon Market Intelligence Report every quarter. The first report has already been released in Q1 2025.

Additionally, a formal sustainability impact report is published every quarter, covering:

* Total $SEED staked
* Volume of $SEED burned
* Estimated CO₂ offset (in metric tons)
* Project site highlights and third-party verifications
* Ecosystem-wide burn statistics

By aligning financial participation with systemic environmental benefit, Sproutly ensures that the act of staking becomes a climate action in itself, verifiable, measurable, and globally relevant.