How Crypto Disrupted the Philanthropy Economy. Crypto companies and individuals as well are rapidly giving to charity. However, a lot of traditional charities are not been added to the digital money deluge.
So many of them have brought concerns. Concerns that control and guidance is being taken out in the favour of giving out control to the donors.
Crypto philanthropy is a fast-rising industry that looks and acts so different from the rest of traditional philanthropic ventures.
While the current market recession has witnessed lucks being wiped out, there is expanding number of voices. That suggests that the wealth-creating potential of crypto as well as its ability to distribute the wealth just begun.
If Bitcoin price were to increase to $200,000. Brian Armstrong, the CEO of Coinbase observed that half of the world’s billionaires would be crypto billionaires.
Even if Bitcoin never gets to that number, the heady mix of increasing wealth creation of crypto. The cult-like status of some of its richest citizens. As well as a delusion with data is remolding philanthropy already, as we all know it.
The Rise of Crypto Philanthropy
Charitable giving and crypto have been ongoing for years now. In the year 2018, an anonymous crypto user, Pine, gave out 5,104 bitcoin to 60 charities completely anonymously. And this equates to $86 million at that time.
Also, FTX, a crypto trading platform, gives out 1 percent of its net fees to the world’s most effective charities. And this leads to over $10 million worth of cash moving out of the company.
NFT projects are as well donating proceeds to carbon offsetting charities.
Others projects have also been developing new funding means. In order to raise some money for good causes.
Let us take, for instance, Gitcoin. Gitcoin raises and distributes funds to work on open-source software. It makes use of a procedure known as quadratic funding to suggest where the money should go.
This is a scientific model that is used to determine which of the projects should be granted funding. Based on how popular it is amongst the rest smaller donors.
Meanwhile, AidChain offers what the researchers at Northumbria University called “surveillance philanthropy”. They use blockchain as a means of tracking where and how money is being spent.
It also gives donors the opportunity to see if their donations have been spent in a way that is pleasing.
Another crypto-giving platform, Promise. Promise puts in the method that is mainly found in software companies to gauge the success of a charitable campaign.
Promise depends on any project that signs up to the platform to post a series of confirmable project milestones. To ensure that funds are only given out when they have met their main target.
And it has for long collaborated with over 2,000 registered charities. English Heritage, which is one of the biggest charities in the United Kingdom is not excluded.
Donors have every right to stop those in need from purchasing anything at all that the donor doesn’t want them to get.
Let us take the Humanity Token for example. For instance, permitted and qualified goods and services include health care, shelter, food as well as professional courses.
But Humanity Token doesn’t accept drugs, alcohol, and other things that could damage health. To be purchased with the token to be sure that the recipients of aid are going along in the donor’s interest.