5-2. Status and Art Drawing

Regenerative NFTs can be issued and circulated before the creation of environmental value. The following statuses exist for these NFTs.

• Project Not Applied:

This status indicates that no registration application has been made under the certification system established for each credit to be formally recognized and registered as an official project.

• Project applied:

This status denotes the phase where the project is currently in the registration application process (prior to being registered).

• Project Approved (credit not attached):

This indicates that the project has been confirmed to meet the set criteria and is registered with the certification authority. While the project has commenced, it has not yet produced any environmental value. It typically takes about 1 to 2 years to transition from this status to a fully "Project Approved" state.

• Project Approved (credit attached: Available Environmental Value > 0):

This indicates that the project's compliance has been confirmed and it has been registered with the certification body, and furthermore, the environmental value has been produced. The generated environmental value is represented in the certified carbon credit NFT. The natural resource owners can, upon application, acquire (transfer) this environmental value.

• Retired:

The environmental value, such as the J-credits represented by the certified carbon credit NFT, has already been transferred, leaving the certified carbon credit NFT without any represented environmental value. To ensure that it does not mix with other Regenerative NFTs in secondary sales and the like, this specific certified carbon credit NFT becomes non-transferable.

• Expired:

If, from the later timing of either the creation of environmental value or the transfer of the Regenerative NFT, the pre-set validity period (refer to 4-3) has passed and no transfer of the said Regenerative NFT or its environmental value has taken place, the environmental value associated with that Regenerative NFT will be returned to the natural resource custodian. As a result, the Regenerative NFT will no longer represent any environmental value. To ensure it doesn't mix with other Regenerative NFTs in secondary sales and the like, this specific Regenerative NFT becomes non-transferable.

• Revoked:

This refers to a status where, for any reason, the natural resource owner has deemed the NFT void. There's a potential for any of the aforementioned statuses to become revoked. If the Regenerative NFT represents any environmental value, this representation will be nullified when the environmental value becomes revoked. To ensure it doesn't mix with other Regenerative NFTs in secondary sales and the like, this specific Regenerative NFT becomes non-transferable.

The status of the Regenerative NFT is written into the NFT's metadata each time it changes.

When a Regenerative NFT reaches a status of "Retired", "Expired", or "revoked", not only is the status inscribed into the metadata, but the state of its associated art also changes. By becoming non-transferable, this alteration can be visually confirmed.