R5: ARR (Reforestation)

What this route does.

R5 turns new trees and restored forests into verified, ex-post removal tons that buyers can defend. It runs on PoV discipline: field plots, labs, and remote-sensing feeds are bound into a tamper-proof evidence packet (GRO); a verifier signs; EDMA issues tons; settlement happens on-chain in $EDM with 4% total fees and a 50% burn. No evidence → no ton → no settlement.

Market

Buyers. Corporates retiring removal tons alongside internal decarbonization. Demand has shifted toward higher-integrity ARR with strong MRV and permanence.

Reality today. Nature-based credits often trade in the high single-digits to low-$20s/t, while credible ARR clears ~$20–$60/t depending on species mix, tenure/FPIC, MRV quality, and buffer design. Supply tightened as methodologies strengthened (ARR issuances peaked ~37.9 Mt in 2021, then ~9.2 Mt in 2022 and ~7.8 Mt in 2023; 2024 trended lower as projects retooled). Verra’s VM0047 is now ICVCM-CCP eligible, improving buyer confidence.

PoV in Action

1

Capture & Sign

You set a monitoring plan (plots/strata, lab cadence, optical/radar RS) and time-sync instruments. Each interval produces a GRO evidence packet with coordinates, timestamps, instrument/lab IDs, QA notes. GRO is non-transferable evidence, not a credit.

2

Verify

An independent verifier reviews the dossier (baselines, leakage, uncertainty, permanence buffer) and signs the same evidence packet; weak additionality stories are routed to better lanes (e.g., soils/biochar in R8).

3

Gate

EDMA’s PoV Gate enforces:

1. Quorum present

2. Equality of evidence (every counted verification references the same packet/hash),

3. One-Claim exclusivity (he route-agnostic claimId has not finalized anywhere). If any rule fails, no mint, no issue, no settle.

4

Issue ex-post

After pass, EDMA issues removal tons using conservative math:

Saleable = Gross × (1 − deductions for baseline/leakage/uncertainty) × (1 − permanence buffer)

GRO is consumed and locked; it cannot be reused later.

5

List & settle

You choose pricing posture (forward/floors or spot). Seller pays 2% in EDM at claim; buyer pays 2% at settlement (optionally in EDM). 50% of every fee burns until circulating supply reaches 100M. A $0.50/EDM denomination floor is used only to compute token count; it’s not a price peg. If you lack EDM, the call cleanly reverts.

Eligibility (additionality & scope)

• Binary additionality gate. We admit projects that would not happen without the program (new ARR, assisted natural regeneration) and that can maintain tenure/consent (FPIC). Weak or marginal cases are quickly rerouted to a better route rather than stretched into carbon.

• One-claim law. If any overlapping instrument exists (biodiversity, land-use, energy-side attributes), it is retired/immobilized first and its external ID is recorded on-chain before carbon is queued. One unit of benefit backs one claim.

• Permanence with teeth. Risk-weighted 10–20% buffers, reversal monitoring, and clawbacks for deliberate loss.

What you actually do (week 1 → first issuance)

1. KYC + wallet. Whitelist your payout wallet.

2. Additionality gate. Fast yes/no; if “no,” we route to a better lane.

3. Connect data. Plots, labs, RS feeds; GRO begins minting per interval.

4. Prefund EDM. Admission Prefund (USD) = min( max( 0.02 × projected 3-month carbon revenue, $20 ), $1,000 ) — staked in EDM; the app shows a fuel gauge.

5. Verify → issue → sell → claim. Ex-post cadence (often annual early; semi-annual where data supports). 2% seller fee in EDM at claim; 50% burn.

Worked examples

Formula. Saleable_t = Area_ha × Gross_t/ha × (1 − deductions) × (1 − buffer); Net = Gross_$ − 0.02 × Gross_$.

Scenario A — 500 ha ARR (tropics), $40/t; deductions 20%, buffer 15% (multiplier 0.68).

Year 1: 680 t → $27,200 gross → $26,656 net

Year 2: 1,360 t → $54,400 → $53,312

Year 3: 2,040 t → $81,600 → $79,968

Year 4: 2,380 t → $95,200 → $93,296

Year 5: 2,720 t → $108,800 → $106,624

Prefund (Y1): quarter gross $6,800 × 2% = $136 (≤ 272 EDM at the $0.50 floor).

Scenario B — 200 ha ARR (temperate), $30/t; same multiplier (0.68).

Year 1: 136 t → $4,080 → $3,998 net … Year 5: 680 t → $20,400 → $19,992 net

Prefund (Y1): $20 minimum (≤ 40 EDM at floor).

Bands: plan against $20/t (conservative) and $40/t (base); treat $60/t as a stretch tied to story quality and buyer mix.

Integrity & controls (why buyers accept your tons)

• Ex-post only. We issue after monitoring closes and a verifier signs—no pre-selling hypotheticals.

• GRO = unbreakable spine. Field→lab→satellite is bound into a GRO receipt; at issuance, GRO is consumed and locked.

• Transparency. External retire/immobilize IDs are anchored on-chain; monthly burn reports by region.

Fees, EDM, and settlement

EDM is gas and fee; there are no auto-swaps. 4% total per sale (2% seller at claim; 2% buyer at settlement, with an EDM discount option). 50% of all fees burn until 100 M circulating. Denomination floor: max(oracle, $0.50/EDM) determines tokens owed; it’s not a peg. UX guardrails: fuel gauge, one-tap top-up, clean revert if short.

Risks & mitigations

• Factor/measurement risk. We lock factor sources/versions and publish any restatement SOPs; baselines/leakage/uncertainty are explicit in the plan.

• Permanence risk. Risk-weighted buffers (10–20%), reversal monitoring, clawbacks for deliberate loss.

• Process risk. Verifier backlog handled via accredited panels and batch scheduling; cadence is published in-app.

Cross-links

• PoV Layer (§9)

• Fees & Tokenomics (§14/§18)

• Marketplace → Tokens (listing, lineage, burn ledger)

• R8 for soils/biochar if ARR gate is weak.

Bottom line. Route 5 pays for real, measured forest growth—issued ex-post, guarded by GRO evidence, and one-claim law. Buyers get audit-ready tons; you get predictable on-chain cashflows; and every sale tightens EDM supply by design.