How the World of Charitable Giving Is Changing as Cryptocurrencies Like NFT’s, Daos and Defi Come into Play

Blockchain technologies such as NFTs, decentralized finance (DeFi), and decentralized autonomous organizations (DAO) are restructuring charities to raise and distribute funds to the less privileged in our society.

Crypto donors around the globe have attested to the new wealth distribution mechanisms that the growing Blockchain technology has created. According to Omar Antila, Crypto for Charity’s Product Lead, philanthropy has long been seen as a very expensive and solo venture. However, with the help of Web3 technologies such as DAOs, it’s possible to use special tools that enhance financial coordination and thus encourage more people to participate.

Omar added that the blockchain technology has also equipped them with new fundraising methods such as NFT drop campaigns or giving people a chance to pool their Crypto in a decentralized finance protocol that earns interest to be used for charity.

To raise breast cancer awareness, several organizations focused on breast cancer began implementing NFTs in October 2022. The theme being Breast Cancer Awareness Month.

The Product Lead of Crypto for Charity also mentioned that his firm was aware of several charity organizations built around NFTs. These organizations have raised funds for good causes such as aiding patients with testicular cancer and supporting victims of the Ukraine invasion by the Russian army.

In 2022, Ukraine DAO managed to crowdfund over $6 million for a Ukrainian flag NFT. The profits realized were sent to NGOs in Ukraine to support families affected by the invasion.

One of the authors of “Bitcoin and the Future of fundraising,” Anne Connelly, strongly believes that crypto fundraising will expand beyond Bitcoin and Ether in the foreseeable future. She believes that charitable organization will soon expand their receivable tokens as the crypto market continues to grow.

Anne adds that as soon as organizations around the globe realize the philanthropic potential wielded by Crypto, crypto donations will be as common as receiving credit card donations.

According to Omar, the growth of the crypto market bears good news for crypto donations. He believes it’s only a matter of time before the 2+ billion unbanked adults globally start participating in the global economy. They will be equipped to create wealth without the help of third parties.

This is most likely to begin in developed nations as they are the regions with the highest adoption rates. According to Anne, undeveloped nations such as Nigeria, Argentina, and Vietnam have the highest crypto adoption rate since they don’t trust the financial system available in their country.

Anne also mentions that some of these nations have extremely high inflation rates that people don’t even consider to have fiat currencies. She adds that giving citizens the freedom to use cryptocurrency is vital. In addition, it shows that citizens will only use a form of currency they trust.

In conclusion

According to Cointelegraph, the number of people using Bitcoin and Crypto for payments has increased sharply over the years. And as crypto donations have proved to be more effective and efficient than their fiat counterparts, we’re likely to see more crypto donations soon.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.