Transforming Old Money with Smart Money
Welcome back to this week's post on Innovating Industry! This time around, we'll be looking at an awesome blockchain/Ethereum-based startup – EduDAO.
I had a chance to talk with the team back at the Blockchain for Social Good Meetup 2 weeks ago and thought it would helpful to introduce their work to the Steemit community as more and more members are looking to fund social-interest projects and applications through the power of Steemit. As many of you know, I'm currently working on STEEM PARK in an attempt to fund and support the first public project built with the engagement of Steemit. EduDAO's initiative really peaked my interest and has the potential to be a magnificent tool for similar efforts in the future.
EduDAO's Blockchained Philanthropy
To put it (overly)simply, EduDAO is an upcoming platform that allows donors to find and fund nonprofits and educational initiatives of their choice. Every donation to an educational cause will be integrated into the blockchain code and every transaction will be crystal clear.
Their auxiliary ambition is create such a robust network of schools, nonprofits, institutions, government bodies, companies, etc, that are collaboratively capable of empowering these small initiatives. Storytelling is a big part of what they want to accomplish in order to not only fund a project but bring that project to the forefront.
Reconstructing the Philanthropic Model
The philanthropic model is in need to a full makeover. Full stop. Here are some of the most glaring problems.
1- You Can't Follow the Money.
As it stands now, it's terribly easy to give money but no real way to track how that money is being used or have any real say on the allocation of those funds. Far too often are funds wasted on inefficient operations and in the worse case, internal corruption. It's no secret that many philanthropies serve as ceremonial faces of big tax write-offs and political leverage.
Building on the blockchain could begin to purge a well-intentioned field of those nasty bits that reveal themselves in an open ledger. Every dollar, every source, every fund within sight.
2- Donation is Often the Be-All-End-All
Write your checks or fire up your Paypal. Maybe you're at a cocktail party with perfect little olives or you're giving to that ambitious girl scout. No matter the setting, the cause, or the method, eventually that money is taken out of your hands and for most, the relationship ends there.
A more transparent model, as the one EduDAO's platform describes, would allow more openings in the process where interested parties can invest more of their energies. Say that quartet was funded but needed a place to practice? Maybe the CEO who donated could offer up the conference room of his company after-hours. Maybe the mom-and-pop music store could offer discounted reeds and cleaning cloths for the players' instruments. When the funding process in open and engageable, there are exponentially more and diverse opportunities to get involved.
Ultimately, this makes up the great sustainability of good intentions. It's determined by how well you can tell a story and resonate with those who want to be involved in the long-haul. If that isn't sustained, the donation is a single gesture in a world where continued action is so desperately needed.
3- Equity is Difficult to Build, Stake but No Effort
Are you a powerful, wealthy donor who can throw 5 or 6 figures at a philanthropy? Unless you were an early crypto-user, probably not! So the question becomes, how can the average person contribute tangibly towards a 501c(3) or initiative that they just heard about?
The philanthropic world needs more robust “agencies” to bring people onboard noble efforts without all the personal need of searching out and learning of these organizations on private websites. A consolidated list that branches into a decentralized but connected network is needed to make the dollar work harder.
Decentralizing Dependence
Imagine you're a parent with great interest in your child's education. You know that the school they attend could probably use some extra funds, use extra materials for activities, and use extra manpower for community events. But in today's world, regardless of the need, nothing is fulfilled unless the school takes on the extra task of organizing and mobilizing those “extra” ambitions.
Now consider if all the internal activities and fund allocation was transparent. You as a guardian would know exactly when you could help volunteer or fund a certain schedule. They would have access to all the relevant information and involved parties. Transparency = Trust.
I'll be following the efforts of EduDAO closely since they're primarily NYC-based and we might be able to get some of their input in our upcoming STEEM PARK! The blockchain world is exciting and growing, it's fantastic to see these emerging entrepreneurs in the arena.
Steem on!
Previous "Innovating Industry with the Blockchain" Posts -
1 - GAMECREDITS and the E-Gaming Industry
