ConsenSys and WWF Roll Out Platform for Transparency in Philanthropy
Blockchain startup ConsenSys and the World Wildlife Fund have jointly launched the Impactio platform to bring transparency into philanthropy.
ConsenSys, a blockchain startup founded by Ethereum’s (ETH) co-founder Joseph Lubin, and the World Wildlife Fund (WWF) have jointly launched the Impactio platform to bring transparency into philanthropy.
Per an announcement made on Sept. 24, a new partnership between ConsenSys and the WWF resulted in an Ethereum blockchain-based platform dubbed Impactio designed to supervise and fund projects within nongovernmental organizations and standalone companies. The impetus behind the initiative is to trace how companies’ funds are spent within social impact projects.
What does Impactio solve?
Individuals and companies who utilize 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.
After that, curators receive Impactio Tokens in a digital wallet, with the platform using a system based on ConsenSys’ research on Token Curated Registry (TCR) to curate 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.”
According to Robby Greenfield, 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.” Indeed, a law firm Nolo’s study revealed that 75% to 85% out of 220,000 nonprofit organizations improperly allocated their expenses.
Industry players embrace blockchain in philanthropy
As Francesco Nazari Fusetti, social entrepreneur and founder of Ethereum blockchain-based token AidCoin and full-service platform CharityStars, previously 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 the work is sustainable. He added:
“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.”
In early September, news broke 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 tech.
Binance Charity, the philanthropic wing of major cryptocurrency exchange Binance, also began a campaign to help support victims of Hurricane Dorian.