Non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized finance (DeFi) are redefining how charities raise donations and distribute funds to those most in need.
Through ever-evolving crypto and blockchain-related technology, crypto philanthropists told Cointelegraph that they’ve witnessed “new wealth distribution mechanisms” never seen before.
“Philanthropy has traditionally been seen as a high-cost-of-entry, individualistic activity but with web3, collective decision-making bodies like DAOs can use tools that streamline financial coordination and encourage more participation,” explained Omar Antila, Product Lead at Crypto for Charity.
“Crypto enables new innovative fundraising strategies, like charitable NFT-drop campaigns, or allowing people to pool their crypto funds in decentralized finance (DeFi) protocols that earn interest for a specific cause,” he added.
In October, a number of breast cancer-focused organizations started implementing NFTs to highlight Breast Cancer Awareness Month.
Antila noted that he has seen many other philanthropic communities built around non-fungible tokens (NFTs), which have raised support for many other causes in need, such as testicular cancer, human trafficking, and the war in Ukraine.
Last year, UkraineDAO, a decentralized autonomous organization crowdfunded $6.1 million for a 1/1 Ukrainian flag nonfungible token (NFT). Proceeds were aimed at nonprofit organizations in Ukraine helping those affected by the Russian invasion.
Blockchain technology is primed to expand on what is currently possible in the non-profit sector. Source: Moralis.io.
Meanwhile, Anne Connelly, the co-author of “Bitcoin and the Future of Fundraising” believes the crypto charity sector will soon expand from Bitcoin (BTC) and Ether (ETH) as the main cryptocurrencies for donations:
“Over time, however, we’ll see organizations accepting a much larger spread of tokens — similar to how they would accept gifts of securities. We’ll also see gifts of NFTs and…..