<p>Timber-based construction, while globally prevalent and environmentally renewable, continues to contribute significantly to deforestation and carbon emissions due to limited and fragmented adoption of sustainable practices. The general problem addressed in this paper is the lack of effective mechanisms to incentivize construction companies to adopt circular economy (CE) practices within timber-based supply chains. The research question is: How can blockchain technology be employed to design a transparent and enforceable incentive mechanism for circular supply chain (CSC) adoption in timber-based construction? We developed a blockchain-based tokenization framework using Solidity smart contracts that implements a scoring, ranking, and token-based incentive system to answer this question. The framework was tested through simulated interactions in the Remix Integrated Development Environment (IDE), with the code made publicly available on GitHub. The results show that the system can autonomously execute token-based incentives tied to CE performance scores, demonstrating its technical feasibility and ability to ensure transparency, accountability, and trust. This is important for policymakers, regulators, and industry stakeholders seeking scalable tools to promote sustainability in the construction sector, as it provides a replicable, verifiable, and tamper-proof mechanism for rewarding circular practices. The framework enhances compliance and motivation by linking incentives directly to measurable sustainability performance. Finally, this research enables future work by laying a foundation for deployment on live Ethereum networks and integration with decentralized applications (DApps), which supports the transition toward sustainable construction and contributes to Sustainable Development Goals (SDGs), including responsible consumption, sustainable cities, and climate action goals.</p>