ART Token
ART tokens are minted while an AREC NFT is liquidized by the user. Liquidization is the process in which the user transfers the owned AREC NFT to the ART smart contract, the AREC NFT is set to Liquidized state, and the exact same amount of ART tokens as the amount of the RE output in the liquidized AREC NFT are minted to the user's account.
All the liquidized AREC NFTs are owned and managed by the ART smart contract in the form of a FIFO ring (First-In-First-Out). While an AREC NFT is liquidized, it is always added to the end of the ring. While solidifying ART to withdraw AREC NFT, the AREC in the head of the ring is the one removed and reverted to Certified state. Similarly while offsetting ART as a climate action to mint retirement badge, always the AREC in the head of the ring is removed and changed to Retired state.
The Liquidized state is an intermediate state, which can be reverted to Certified state while solidifying ART tokens, or changed to Retired state while offsetting ART tokens.
Solidify ART
Solidifying ART is the process to burn ART tokens and withdraw the AREC NFTs back to the user's wallet. Service fee proportional to the solidified ART tokens will be charged. The process to solidify ART tokens works as following:
Check that the ART amount to solidify is more than the RE amount of the first AREC NFT in the liquidized AREC ring.
Remove the first AREC from the liquidized AREC ring. (If it is not the first step in the loop, skipping is allowed to optimize the solidifying process).
Transfer the AREC to the burner of the ART tokens.
The NFT transfer hook in the AREC NFT smart contract is activated to check if the transfer is allowed.
AREC NFT smart contract sets the state of the AREC from Liquidized to Certified.
The AREC NFT in Certified is received in the user's wallet, then check if still some ART tokens need to be solidified, if yes, repeat from step 1.
Burn all liquidized ART tokens from user's wallet.
Charge solidifying service fee.
Complete the solidifying transaction.
Offset ART
Offsetting ART is the process to burn ART tokens as a climate action, and optionally mint an Arkreen climate badge. Different from solidifying ART，offsetting ART is completely free. The process to offset ART tokens works as following:
Check if the last retired AREC remains enough RE yield to cover the offset action, if yes, jump to step 5.
Remove the first AREC from the liquidized AREC ring.
Transfer the AREC to the retirement badge smart contract.
The NFT transfer hook in the AREC NFT smart contract is activated to check if the transfer is allowed.
AREC NFT smart contract sets the state of the AREC from Liquidized to Retired.
The AREC NFT in Retired is locked in the climate badge smart contract, and its life cycle is ended forever. Then offset detail information is created or updated, and jump to step 1.
Burn all liquidized ART tokens from user's wallet.
Create climate action to the user's wallet.
Complete the offsetting transaction.
