Let currency C be a reward proportional to amount of carbon offsets (or any other social good).

I am trying to invent a way to reward (to stimulate social good) holders of this currency.

Let M be "money" (some valuable currency that is a currency market subjects do want to acquire).

Consider two scenaria and help me understand which of them rewards better for acquiring C.

  1. Create an exchange of C for M using a liquidity-pool-based swap like Uniswap or Bancor.

  2. Allow anyone to donate M to an account that is locked for a long period of time (like 50 years). When the time passes, allow anyone to exchange C for M from this account: a. by fixed exchange rate T_M / T_C where T_M and T_C are total supplies of these tokens on the market; b. by donating the entire sum of tokens on this account to a liquidity-pool-based swap.

I think that "2" may probably be better than "1" because if we don't use "2" there is no account where a person wanting to donate could send M to stimulate C holder. (He could send it to a luquidity pool, but then if the sum of C available on the swap is little (why would it be big?) then the money M of the donor would be uselessly spent by somebody holding just a minor amount of C because the price C/M would become very high.)

Could anyone help me to check this my hypothesis mathematically?

(It is assumed that there are enough market players wishing to invest into 50 years future by acquiring C currency.)

Here are some of the exchange rates used by swaps:


Uniswap formula


Bancor formula

How my idea could be further improved? I propose to lock donated funds for a fixed period of time like 50 years and the choice of this time period is arbitrary (I have no scientifically founded formula for the locking period.)


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