> For the complete documentation index, see [llms.txt](https://valuex.gitbook.io/valuex-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://valuex.gitbook.io/valuex-whitepaper/value-x-whitepaper/9..md). # 9. Carbon Points and Markets Carbon Points represent verified reduction records. The market is planned to open in stages once data verification stability, circulation volume and jurisdictional regulatory requirements are met.
### 9.1 Carbon Point Issuance Rules * Issued once, and only for activities that pass the verification rules: formulas and coefficients are applied according to the methodology version, and there is no additional issuance at administrators' discretion. * Metadata kept after a change of owner: the source grade, methodology version, measurement period and source hash are preserved after ownership changes. * Distinct naming: Carbon Points are an internal unit for reduction records, not nationally certified emission allowances. ### 9.2 How Individuals Use Points Individuals use the points they have accrued in the following ways. * In-app partner benefits: discounts and payments at partner merchants * Conversion to VLX tokens: Carbon Points → VLX, one way only * VLX Card payment deduction: not included in the first release. Planned for release after carbon data verification, partner integration and confirmation of the settlement structure * Sale on the marketplace ![Figure 9. The life of a Carbon Point: from issuance, through four uses, to permanent retirement. Payment deduction comes in a later phase](https://4111024654-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fw7YoFCbsDz1NbkOTHoHH%2Fuploads%2FauPr0MKhvQ5tpdIjgd0n%2FChatGPT%20%EC%9D%B4%EB%AF%B8%EC%A7%80%202026%EB%85%84%209%EC%9B%94%2028%EC%9D%BC%20%EC%98%A4%ED%9B%84%2003_35_18.png?alt=media\&token=53f9f5ae-ccb4-4d8a-8dcf-2b2a5161b707) Notice on legal nature. The rules that apply to Carbon Points may vary by scope, function and jurisdiction, and are determined after legal advice. Deduction for merchant payments is provided by an entity that meets the relevant requirements. ### 9.3 How Businesses Use Points Businesses can use Carbon Points to manage internal reduction activities and track data. Using them for external carbon offset claims, regulatory compliance or official ESG disclosures requires separate approval from the relevant scheme and verification body. ### 9.4 P2P / B2B Marketplace Ahead of the exchange, a limited marketplace is planned to run as a pilot in Phase 2 (2027). During the pilot, suppliers register orders with conditions on grade, period and quantity, and buyers fill them. Payment and the transfer of points execute atomically in a contract. The purpose is to verify the stability of the infrastructure. ### 9.5 Conditions for Opening the Exchange Module * Data verification stability: the verification rejection rate and anomaly detection metrics fall within a stable range * Circulation volume of reduction records: enough participation and liquidity to support smooth order matching and price formation * Meeting jurisdictional regulatory requirements: the regulatory requirements of the relevant jurisdiction are met (in jurisdictions where the interpretation has not been settled, the scope of participation may differ) ### 9.6 Permanent Retirement When a holder retires points, they go to a burn address. A certificate record stating the reason, the party to which the retirement is attributed and the period covered remains on the ledger, and anyone can verify it by its unique transaction hash. Retired points are designed so that they cannot be recovered or put back into circulation, and the operating entity has no recovery authority either. ***