Blockchain startup ConsenSys has partnered with the World Wildlife Fund to create Impactio—a blockchain-based platform supporting the UN’s Sustainable Development Goals (SDGs) by bringing transparency to philanthropy.
Constructed using Ethereum blockchain technology, Impactio was designed to both fund and supervise projects undertaken by NGOs and other entities.
Through a vast network of subject matter experts, individuals and organisations throughout the world, the platform aims to maximise collaboration and bring high-quality social impact projects to life. As transactions on blockchains are transparent and permanent by nature, Impactio will also track exactly how the entities’ funds are being used.
“Many nonprofits struggle to show that they are using their funds effectively and how it aligns their funders’ goals,” Robby Greenfield, co-founder at ConsenSys Social Impact, said in a Medium post.
First, project leaders need to submit their projects on the Impactio platform, providing clear steps for goals such as sustainability, inequality or emerging communities in line with the SDGs. Then, curators offer constructive feedback to the project leaders, with the aim of improving the quality of the project’s application.
“This openness and access to expertise is invaluable, and is arguably the most compelling feature of the platform and its workflow,” the post stated.
Next, curators use Impactio tokens to collectively vote on high-quality, impactful projects to present to funders.
The curators backing the approved projects will get their tokens refunded and receive more tokens as a reward for investing their time and commitment in the project. Those who voted for approved projects will also receive tokens as a reward for their due diligence in assessing the project and resolving any possible challenges.
Greenfield explained that social impact projects often must compete with each other to receive funding, which is especially true or projects that are not part of a funding network. As a result, many good projects with worthwhile goals can’t receive the funds to be carried out. Impactio is looking to change that.
“This will all lead to philanthropists, investors, and donors having more confidence that the selected projects would have undergone a rigorous peer-review process by subject-matter experts from around the world, with good governance in place and can decide to fund them.”