Crypto donations are a lot extra than simply peer-to-peer Bitcoin and Ether transactions.
Non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized finance (DeFi) are redefining how charities raise money and distribute it to those who need it most. increase.
With ever-evolving crypto and blockchain-related technologies, a crypto philanthropist told Cointelegraph that he has witnessed a “new wealth distribution mechanism” never seen before. “Charity has traditionally been viewed as an individualistic activity with high entry costs, but with Web3, collective decision-making bodies like the DAO can streamline financial coordination. , can use more tools to promote participation in cryptocurrencies for charitable purposes.
“Crypto enables new and innovative fundraising strategies such as philanthropic NFT drop campaigns or allows people to pool their crypto assets in his DeFi protocol to earn interest for specific purposes. I will,” he added.
In October 2022, several breast cancer organizations began implementing his NFT in honor of Breast Cancer Awareness Month.
Antilla pointed out that he has seen many other charities built around NFTs that rally aid for testicular cancer, human trafficking, the war in Ukraine, and many other emergencies. bottom.
Last year, UkraineDAO funded her $6.1 million for her 1:1 Ukrainian Flag NFT. Proceeds were donated to Ukrainian charities that help those affected by the Russian aggression.
Meanwhile, Anne Connelly, co-author of Bitcoin and the Future of Fundraising, believes the cryptocurrency charity sector will soon expand with Bitcoin (BTC) and Ether (ETH) as the leading cryptocurrencies for donations.
“I believe that once organizations realize the philanthropic potential of this donation segment, all organizations will have a crypto donation platform, just like all organizations accept credit cards,” she added. I got
Antillah said the pervasive nature of cryptocurrencies means that the total market that crypto charities can serve is also huge.
She said Antilla said that “the nearly 2 billion unbanked adults in the world today” have the tools to “participate in the global economy, conduct business, and generate wealth without third parties interfering.” We think we can get it soon.
This may be especially true for countries suffering from a lack of trust in their monetary systems, which also have the highest rates of crypto adoption.
According to Connelly, adoption rates are highest in developing countries, particularly Nigeria, Argentina, Vietnam, and South Africa, because these countries simply cannot trust their monetary systems.
“Over half the world’s population lives under double, triple, or quadruple inflation rates. Most people, can’t trust their governments to effectively manage the monetary system.
“Having the choice to use cryptocurrencies is an important choice for citizens, but it also shows that governments need to clean up their behavior if they want people to use fiat currencies,” she said. Added.