Toucan Protocol is Going Open Source — and Introducing Cedar
Today, we're thrilled to announce two significant updates: Toucan Protocol is becoming an open-source, community-driven project, and we're launching a new independent venture called Cedar. This evolution marks a crucial step forward in our mission to build transparent and accessible infrastructure for climate action.
Why We're Making These Changes
When Toucan Protocol launched in October 2021, we were guided by three core beliefs:
- A vibrant and highly active Voluntary Carbon Market (VCM) is critical for addressing climate change.
- Such a rapidly growing market would require robust, scalable and transparent infrastructure.
- Web3 provides the best foundation to build this infrastructure, enabling transparency, decentralization, and trust.
However, the Voluntary Carbon Market has since encountered substantial growing pains: questionable integrity in some major projects, political and regulatory uncertainties, and significant market fragmentation. These factors have led to a slowdown—and even contraction—in certain segments of the market. As a result, while scalable infrastructure remains crucial, we've recognized that more immediate challenges in sustainability demand our attention.
Additionally, as a venture-backed startup, we've learned firsthand the importance of timing and market readiness. In hindsight, we combined the VCM and crypto markets early—perhaps too early. Despite this, our conviction remains strong: Toucan's infrastructure will be essential for the market’s long-term success. But to reach its full potential, Toucan needs a new strategy and model—one that is community-driven, collaborative, and free from traditional VC timelines.
Introducing Cedar
To complement the shift in Toucan's strategy, we're spinning out Cedar—a separate venture building AI agents and automated workflows that supercharge sustainability teams. Cedar focuses on solving immediate, tangible problems, creating a direct and timely market opportunity.
To strengthen Cedar's capabilities, we've acquired Neutral, a trusted partner with whom we've collaborated closely, including on the successful CHAR launch.
We believe Cedar’s work will be complementary to Toucan by tackling upstream sustainability challenges, guiding teams through an increasingly complex regulatory landscape, accelerating their decarbonization journeys and developing effective compensation strategies. We’re strategically reallocating resources toward Cedar, while also ensuring Toucan remains positioned for long-term growth and success.
Open Source and What it Means for Our Community
Carbon markets should be a public good. They exist to address our shared climate crisis, and their infrastructure should reflect that. We believe that the tools and systems that power these markets should be accessible to everyone, not locked behind proprietary walls.
Open source isn't just about code – it's about fostering trust through transparency. When everyone can see, verify, and contribute to the infrastructure, we create a foundation of trust that's essential for carbon markets to thrive.
By transitioning Toucan to an open source project, we're doubling down on our investment in community. We're creating a space where developers, carbon market participants, and climate advocates can collaborate to build something greater than any single organization could achieve alone.
This isn't about maximizing profit or racing to capture market share. It's about creating lasting, meaningful impact in the fight against climate change. It's about building infrastructure that serves the needs of the many, not the interests of the few.
So here's what you can expect:
- No Impact on Assets or Operations: All existing tokens (CHAR, NCT, TCO2s, retirement certificates) and core infrastructure services, such as the Puro bridge, will continue operating exactly as normal.
- Community-Driven Development: We’ll gradually release our codebase, allowing developers and contributors worldwide to enhance, refine, and innovate.
A detailed FAQ is available here.
Looking Ahead
This transition represents more than a shift in operations—it reflects our ongoing commitment to a resilient, transparent, and inclusive carbon market. We invite developers, market participants, and climate advocates to join us in this exciting new chapter.
And if you're part of a sustainability team looking to streamline operations, meet reporting and regulatory demands, or implement effective climate strategies—check out Cedar to schedule a demo.
Get Involved
We welcome your collaboration and support. Join us here:
- Discord: toucan.earth/discord
- GitHub: github.com/ToucanProtocol
- Documentation: docs.toucan.earth