ConsenSys, a blockchain startup founded by Joseph Lubin, the Co-Founder of Ethereum (ETH), and the World Wildlife Fund (WWF) have jointly launched the Impactio platform to bring transparency into philanthropy.
It has been reported that there was an announcement which was made on September 24, that a new partnership between ConsenSys and the WWF resulted in an Ethereum blockchain-based platform dubbed Impactio which designed to supervise and fund projects within non-governmental organizations and standalone companies. The impulse behind the initiative is to record how companies’ funds are spent on social impact projects.
However, individuals and companies who use Impactio should submit their projects, providing clear objectives for aspects such as sustainability, inequality, emerging communities or the environment in accordance with the United Nations’ 17 Sustainable Development Goals.
Consequently, curators receive Impactio Tokens in a digital wallet, with the platform using a system that is based on ConsenSys’ research on Token Curated Registry (TCR) to arrange and choose high-potential projects and subsequently, present them to potential funders. The announcement further explains the TCR’s role in the process:
“It requires curators to stake their tokens to back a project, and for curators who wish to dispute that project to stake the same amount of tokens. If there are no other curators who object to the project, the project will be approved and surfaced for donors to decide on funding. If there are objections, curators can challenge the project by matching the tokens staked by the curator backing the project.”
It has also been reported that according to Robby Greenfield, the Co-Founder at ConsenSys Social Impact, “Many nonprofits struggle to show that they are using their funds effectively and how it aligns their funders’ goals.” In fact, a law firm Nolo’s study declared that 75% to 85% out of 220,000 nonprofit organizations improperly allocated their expenses.
Industry players support blockchain in philanthropy
According to Francesco Nazari Fusetti, the Social Entrepreneur and Founder of ‘AidCoin’ the Ethereum blockchain-based token, and ‘CharityStars’ the full-service platform, earlier told Cointelegraph: “Charities must keep in touch with their donors all the way through the project, and keep updating them about the new milestones reached” in order to prove that a success story is true, as well as to ensure that the work is substantial.
“Adding financials and proofs of payment definitely helps to create a success story, but only with crypto and blockchain we can aim to give full transparency about the use of funds.”Francesco Nazari Fusetti
Likewise, in early September, it has been reported that Rainforest Foundation US, a New York-based nonprofit NGO working in Central and South America, was hoping to support anti-deforestation efforts with crypto and blockchain technology.
Thus, Binance Charity, the philanthropic wing of major cryptocurrency exchange Binance, also started a campaign to help support victims of Hurricane Dorian.