ESG Oracle

The DPX ESG Oracle produces live E, S, G scores from 6 real-world institutional data sources. Those scores flow directly into settlement fees: a higher score means a lower fee. 100% of ESG fee revenue is redistributed to verified on-chain impact programs — making every DPX settlement a direct contributor to measurable environmental and social outcomes.

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Data Sources

The oracle pulls from 6 institutional data sources across the three ESG dimensions:

Environmental (E)

Source	API	Metrics
World Bank	api.worldbank.org	CO2 emissions (metric tons per capita) — EN.ATM.CO2E.PC
Climate Monitor	climatemonitor.info/api	Live CO2 levels (ppm), CH4 levels (ppb)

Social (S)

Source	API	Metrics
UN SDG API	unstats.un.org/SDGAPI	SDG 4.1.1 — minimum proficiency in reading (education), SDG 3 health indicators

Governance (G)

Source	API	Metrics
IMF	dataservices.imf.org	Consumer Price Index (CPI) — economic stability proxy
OECD	sdmx.oecd.org	GDP data — economic governance indicator
SEC EDGAR	data.sec.gov	Corporate governance disclosures (XBRL company facts)

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Metric Weights

Each category uses a weighted average of its underlying metrics:

Environmental weights

Metric	Weight	Direction
CO2 emissions	50%	Higher = worse score
CH4 (methane)	20%	Higher = worse score
Temperature anomaly	30%	Higher = worse score

Social weights

Metric	Weight	Direction
Education (SDG 4.1.1)	70%	Higher = better score
Health indicators	30%	Higher = better score

Governance weights

Metric	Weight	Direction
GDP stability (OECD)	40%	Higher = better score
Corruption / CPI (IMF)	60%	Lower corruption = better score

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Scoring & Normalization

Each raw metric is normalized to a 0–100 scale:

normalizedScore = ((value - min) / (max - min)) × 100

Metrics where higher = worse (CO2, CH4, temperature) are inverted: score = 100 - normalizedScore

The three category scores (E, S, G) are then averaged equally:

avgScore = (E + S + G) / 3

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Fee Formula

esgFee = (100 - avgScore) / 200

Score	Fee	Tier
100	0.000%	Excellent
90	0.050%	Excellent
75	0.125%	Good
50	0.250%	Average
25	0.375%	Below Average
0	0.500%	Poor

This formula is identical in normalize.js, routes/agentEndpoints.js, and DPXSettlementRouter.sol. The three implementations are always consistent.

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ESG Redistribution Mechanism

100% of ESG fee revenue is redistributed to verified on-chain impact programs. This is enforced by the DPXSettlementRouter contract — it is not discretionary.

Distribution

Program	Share	Rationale
Ocean Conservation	30%	Largest share — oceans absorb ~30% of CO2
Renewable Energy	25%	Direct emissions reduction
Forest Preservation	20%	Carbon sequestration and biodiversity
Climate Action	15%	Broad climate mitigation programs
Clean Water	10%	Social / SDG 6 alignment

How it works on-chain

1. Counterparty’s E, S, G scores are fetched from the oracle at settlement time
2. DPXSettlementRouter.settle() computes esgFee = (100 - avgScore) / 200
3. The ESG fee amount is transferred to the redistribution contract
4. The redistribution contract routes funds to five verified program addresses according to fixed percentage weights
5. Each redistribution is recorded in a Storacha (IPFS) proof with: tx hash, per-program amounts, period dates, and total redistributed

The program addresses and percentage splits are set at contract deployment and can only be changed via on-chain governance — not by Untitled Financial unilaterally.

Impact at scale

Annual Volume	ESG Fee Pool (score 75)	Per Program
$100M	$125K	$37.5K (Ocean) / $31.25K (Renewable)
$1B	$1.25M	$375K (Ocean) / $312.5K (Renewable)
$5B	$6.25M	$1.875M (Ocean) / $1.5625M (Renewable)
$12B (Year 10)	$15M+	$4.5M+ (Ocean) / $3.75M+ (Renewable)

Every redistribution is verifiable on-chain and on IPFS. Any agent, auditor, or regulator can independently confirm funds reached the programs.

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Live Endpoint

GET localhost:3001/esg-score

Returns the current E, S, G scores, composite average, active fee rate, and tier label. Use scores.average as the esgScore parameter in settlement quotes on the Stability Oracle.

Replace localhost:3001 with your production URL. Hosted endpoint provided upon beta approval.

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File Structure

esg-oracle/
  oracle.js           ← Orchestrates all 6 data sources, runs on interval
  normalize.js        ← Normalization, weighted averages, fee formula
  weights.json        ← E/S/G metric weights (co2: 0.5, ch4: 0.2, temp: 0.3, etc.)
  adapters/
    worldBank.js      ← World Bank CO2 data
    climateMonitor.js ← CO2 ppm + CH4 ppb live readings
    un.js             ← UN SDG education and health indicators
    imf.js            ← IMF CPI (governance proxy)
    oecd.js           ← OECD GDP data
    sec.js            ← SEC EDGAR corporate governance disclosures
  routes/
    agentEndpoints.js ← /manifest /esg-score /quote /fee-schedule /reliability
  storachaClient.js   ← IPFS audit trail for ESG results + redistribution proofs