# What is ART
ART tokens are minted when a user liquidizes an AREC NFT by transferring it to the ART smart contract. This process changes the AREC NFT's state to Liquidized, and the equivalent amount of ART tokens based on the Renewable Energy (RE) output is minted to the user's account. Liquidized AREC NFTs are managed in a FIFO (First-In-First-Out) ring structure. The Liquidized state serves as an intermediate phase, reversible to Certified or changeable to Retired depending on the action.
Solidifying ART involves burning ART tokens to withdraw AREC NFTs back to the user’s wallet while incurring a service fee. The process ensures the first AREC NFT in the FIFO ring is reverted to Certified state and returned to the user. This cycle repeats if additional ART tokens are burned. The process is completed once all ART tokens are burned, and the fees are charged.
Offsetting ART burns ART tokens as a climate action to optionally mint a retirement badge, free of charge. The first AREC NFT in the FIFO ring is transitioned to the Retired state and locked permanently in a retirement badge contract. Once retired, the NFT's life cycle ends, and offset details are updated. This approach enables users to contribute to climate goals by offsetting energy impacts.
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