Making Room for Crypto in Charity
December 08 2021 - 12:42AM
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With the exponential growth of blockchain, the world is finally
witnessing the use cases of cryptocurrency and blockchain
technology for social causes and non-profit organizations. There
has been a positive movement within the space as several projects
have begun donating portions of their revenue to charity. However,
there are very few direct connections between blockchain projects
and nonprofit organizations that can actually benefit from the
transparent technology. As a solution, Baby Santa, a DeFi protocol,
is making it possible for investors and organizations alike to
donate to charities via crypto. With features like convenience,
transparency, and transaction speed, the platform aims to offer a
gateway for investors to give back by donating to charity while
earning through staking on their platform, thus becoming a new form
of income for charities. How is Crypto Helping Fundraise for
Charities? According to the Association of Fundraising
Professionals (AFP), charity donations fell by 6% in 2020,
resulting in a massive loss of revenue. Despite that, there has
been a 17.2% rise in online fundraising compared to the prior year.
Integrating blockchain and crypto with charitable fundraising has
further expanded the means by which organizations can collect
funds. It has also offered a transparent medium for donations that
instill trust in both the giver and the receiver. Several
organizations have started accepting donations in Bitcoin, Ether,
stablecoins, as well as other digital currencies. Further,
decentralized applications are now creating direct channels to
contribute to social causes. With over $150 billion invested in
this space, more initiatives seek methods to further the
charity-in-crypto movement. NFTs have recently become a frontier
for fundraising, offering more than a direct monetary donations.
There have been several recent instances where NFTs have been
utilized to raise funds for charitable organizations. In March
2021, the Open Earth Foundation received $6 million from the sale
of Beeple’s NFT for charitable artwork. This altruistic movement
has made tremendous progress, providing the charity sector with
transparency, inclusion, and a worldwide presence. There are,
however, a few issues that continue to plague the charity sector.
Existing Challenges in the Industry One of the primary issues with
crypto charity is the lack of belief that money will reach the
cause. There have been countless cases where donations gathered
through the crypto funding platforms have not reached the intended
recipient but instead have ended up in the wrong hands. For
example, members of the FaZe Clan were suspended following charges
that their ‘Save the Kids’ cryptocurrency was a hoax. And despite
being endorsed by popular influencers, the token was subject to a
rug pull. Another challenge that confronts the charity tokens is
the source of fund verification. Since cryptocurrency transactions
are designed to be secret, it is difficult for highly reputable
charities to verify the source funds received. This would create
problems for organizations if the funds are received from unknown
or malicious sources. Baby Santa Simplifies the Crypto Charity
Process Baby Santa is a DeFi protocol focused on helping the less
fortunate. The native cryptocurrency of the platform is the Baby
Santa Token which is aimed to encourage the healthy development of
charitable utility. The idea behind Baby Santa is to provide value
to the needy while also motivating investors and users of the
platform to donate more. Baby Santa will act as a
revenue-generating system where profits can be distributed to the
needy. The project goes beyond that and also seeks to benefit its
investors by enabling investors to earn a secondary form of income
in the form of BUSD rewards. Holders will also have the option to
compound earnings through Baby Santa’s Workshop Pools. It will also
collect staking funds from staking tax and buybacks that will be
distributed to the users who have staked their tokens. Baby Santa
will hold a 12 day of Christmas NFT lottery where users will be
chosen by minting a seasonal NFT at the Nutcracker NFT Mint Event.
The proceeds from this NFT mint will be donated to organizations
and social causes that most need it. Furthermore, Baby Santa will
have NFTs minted under the names of different regions, and the
funds raised from these NFTs will be donated to causes specific to
those regions. Going beyond that, the platform will have a
merchandise store whose proceeds will go to those in need. Even
clothing collections will be made with seasonal themes, promoting
the project and empowering the charity programs, which will be
active throughout the year. Moving Toward a More Charitable Future
Charitable intent was never something simple, as there have
regularly been challenges caused by a lack of trust and
transparency. However, the introduction of blockchain and crypto
philanthropy has shown some promising outcomes. Baby Santa promises
to be the gift of giving, spreading the Christmas spirit all year
long.
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