As the dawn of Decentralized Finance continues to look brighter each passing day, new projects are launching, with each showing unique potentials. Currently, there are dozens of reward tokens, payment solutions, synthetic asset networks and Dexes, and many other aspects of DeFi.
Although there are many entities within the DeFi space, DeFi charity projects have become stellar examples of consumer activism and social sustainability. These crypto initiatives introduce the concept of philanthropy into the blockchain space.
The number of charity DeFi projects has been growing exponentially in the recent past. Since the early crypto days, top charity organizations have recognized crypto as an essential tool in financing philanthropic activities. Some DeFi charity projects have donated as much as $1 million.
The major driver to the fast rise of DeFi charity projects is the need for accountability. Red Cross Australia was under fire a few months ago for not being able to account for donations worth $90 million. Such incidents can be circumvented by integrating blockchain technology, which will ensure that funds are safe and charities uphold transparency.
So, what are some of the most impactful DeFi charity projects? This guide looks into the biggest projects that incorporate charitable incentives within the DeFi network.
What are DeFi Charity Projects?
DeFi charity projects are those that allocate a proportion of their revenue for charitable causes. They may also offer unique value propositions in addition to supporting charities. These projects could have been launched to reward investors as well as set aside a percentage of their tax for charity. So, what charities can they focus on?
- Environmental protection
- Carbon-free world
- Access to clean drinking water
- Bridging income gaps due to growing wealth disparity
- Managing pests
- Finding cures for diseases
- Solving hunger problems in impoverished countries
- Fighting gender-based violence
Top 5 DeFi Charity Projects to Follow
A charity token recognized currently is the Aquari.io network. This platform works as an environmental conservation network, using crypto to restore the earth to its good health.
Like Munch, the Aquari token also sets its tokenomics to help ensure they properly reward the average investors. The network charges a 10% tax. Out of the 10%, 3% go to rebates for token holders. The network burns another 4% to ensure this token remains deflationary in the long term.
Finally, 3% of every transaction goes to a charity's donation wallet. The amount aids in funding the entire project's non-profit functions.
TipsyCoin takes a spot as a leadingDeFi project focused on charities that protect and nurture children and animals. Their platform has a native token dubbed $tipsy that supports a network dedicated to helping children break away from the poverty cycle.
TipsyCoin’s smart contracts have been designed with unique tokenomics to sustain non-profit initiatives. But how do their innovative tokenomics work?
The project has a maximum finite supply of 100 billion tokens. Out of this, 3% – equaling 3 billion tokens – will go to charities. TipsyCoin’s mechanics feature a burn protocol and as the token supply decreases, it corresponds to an increase in the value of their tokens. Once the project releases its revolutionary game, TipsyVerse, the adoption of $tipsy would rise exponentially since the game would be among the first in the DeFi space to integrate VR technology. When $tipsy hits $0.01, the 3 billion charity tokens would be worth a total of $30 million and this would have an enormous impact to improve the world. This would be among the largest donations in the crypto scene. As a DAO (Decentralized Autonomous Organization), owners of $tipsy will be able to vote on charities of their choice, weighted by the amount of $tipsy they hold.
TipsyCoin’s vision is not far-fetched. In fact, the project is already associated with Anja Ringgren Lovén (2016 world’s most influential person) who has tweeted about them. TipsyCoin has saved 81 Nigerian children by providing them food, shelter and education.
There is a superstition in many parts of Africa where children are considered to be demons and are ostracised by their families; TipsyCoin’s founder also has a relationship with Anja from some time back through collaborative vaccination efforts involving Pfizer. Even before launching TipsyCoin in Q1 of 2022, it is evident that this project truly cares about humanitarian efforts and this lends added credibility. Most recently, Paradise Wildlife Park (a registered charity based in the UK) has confirmed that TipsyCoin has adopted 50 penguins.
3. World of Waves
World of Waves focuses on revolutionizing the idea of charities around the globe. According to their website, they intend to make the world a sustainable place using NFT and DeFi.
The network introduces a $WOW token, a BEP-20 protocol to provide the charity options. This token charges a transactional tax of 11%. Out of the tax, 3.3% is distributed as rebates to token holders as a token of encouragement to hold more. Another 3.3% goes to liquidity pools.
The last 4.4% tax is autonomously sent to the $WOW charity wallet. Every month, the network will be utilizing some amount from the charity wallet for philanthropic activities. They intend to focus on aquatic wildlife and ocean conservation.
4. Save The World
Save The World is a Binance based ecosystem that puts philanthropic efforts into solving different global issues. This network has a native token, Save, which helps charities. In every buy and sell transaction, a tax of 10% is charged. 5% goes to token holders as rebates, while 2% goes to daily operations. The remaining 3% goes to charities. Additionally, they developed a “donations wallet” for well-wishers to donate BNBs.
The first phase of the funds, which was about $1.7 million, went to help India in her battle against Covid 19. The network also contributed towards the GBV fight in South Africa and donated some funds to the American Cancer Society. Other beneficiaries included Africa Rising and Shawn Mkhize among others.
Munch is one of the DeFi projects proving to be highly influential, especially in charities. The platform, which was lightly mentioned earlier, launched in 2017.
The network uses the Munch token to raise funds for its operations and charitable activities. It charges a 10% tax. Out of the 10%, half rewards the token holders for hodling, while the other half of the assets are converted to Ethereum and autonomously sent to charities. The Munch ecosystem allows community members to select the charity they want to support accordingly.
This guide has outlined the concept of charity DeFis. The organizations featured are doing a noble job of protecting the environment and its people from mounting complexities created by factors such as global warming and growing income disparities.
Munch, Aquari.io, WOW, Save and TipsyCoin all have addressed different challenges faced by our world.