Humanity faces more problems than climate change. The world faces some of the greatest challenges of our time: global hunger, growing inequalities and economic instability. Many believe that the root cause of all of the problems facing humanity is the expansion of the political power of elites as the distribution of income and wealth becomes more polarized.
Since our beginnings, we have used technology to account for the value created or exchanged. Humans created the concept of money as a way to reward contributions to society; however, money as we know it now is corrupt. Currently, we are witnessing a major inflection point in prioritizing human capital over financial capital, driven by the intersection of blockchain, decentralized autonomous organizations (DAO), and non-fungible tokens (NFT). Today we have the opportunity to make an impact by taking a strong stand for humanity. Through NFTs, we can begin to put people first for profit.
Many people are wary of modern social impact organizations – and for good reason. Over the years, investigators have denounced several charities as facades of profit, contrary to their humanitarian messages. These organizations have taken advantage of government grants and armed unclear ledger systems to hide their profits and maintain a veneer of altruism. Now many are getting wise at this game.
With blockchain technology, donors can demand greater transparency from organizations. Things like NFT auctions, linked to charities, can display verifiable evidence of impact for donors. Blockchain adds radical transparency, improves donor confidence, and allows social impact organizations to focus on what matters. As the arts community continues to support their favorite charities, the company can leverage blockchain and NFTs as a new canvas for content and a system for tracking impact – what money has been spent, where, and why.
Related: Digitization of charity: we can do better to do good
Changes in the incentive of human capital to the detriment of purely financial capital
Another indicator of a more prosocial society is that blockchain challenges the economic basis of human behavior, shifting us from greater individualism to collectivism. In his speech at the recent Ethereum community conference in Paris, Ethereum co-founder and lead developer Vitalik Buterin described how governments fail to fund public goods because they are “too conformist” or “Too exclusive” in favor of selective groups.
Blockchain technology represents an important opportunity to change, realign and properly incentivize the economy of our global system to a values driven ecosystem instead of a profit driven ecosystem where human values, such as wellbeing and resilience, are valued as key measures of success in relation to the price share and where well-being is for all. It is only a matter of time before we prioritize human and social capital over financial capital. This will create new forms of capital, not one at the expense of the other.
Related: No, blockchain technology can’t solve everything
Growth of DAOs funding social causes
DAOs have given more voice, control and power to communities making their own rules for making autonomous decisions, all encoded on a blockchain. There are a growing number of blockchain projects focused on funding social causes and public goods.
NFTs and DAOs have made it easier and more transparent to fund social causes and good. A good example is PleasrDAO, which bought the NFT from National Security Agency whistleblower Edward Snowden for $ 5.4 million and then donated 100% of the proceeds to the Freedom of the Press Foundation. DAOs will continue to make it easier for people and organizations with the resources and motivation to make a difference.
Related: Social governance of crypto will lead to online freedom
Increased participation in the collective good thanks to TVN
Another factor we are seeing take off is what Buterin describes as the legitimacy of participation in his blog post “The most important scarce resource is legitimacy”. Buterin reflects, “If people are involved in choosing an outcome, they are more likely to see it as legitimate. ” He adds:
“If the conception of NFT legitimacy can be pulled in the right direction, there is an opportunity to establish a strong funding channel for artists, charities and others.”
Recent use cases in the NFT ecosystem have shown increased participation in the collective good. Tim Berners-Lee has sold an NFT of World Wide Web source code for $ 5.4 million and plans to donate all profits to charity. Another example is a month-long awareness campaign for Open Earth, an accounting and climate technology project launched by Yale University that culminates on Earth Day.
Related: Earth Day 2021: How the crypto industry is getting closer to going green
Retroactive possibilities of public funding
For many charities and NGOs, raising funds in advance through donations and grants does not provide sufficiently stable flows. Retroactive public funding would fundamentally change the funding model for not-for-profit organizations. With retroactive funding, there is a price set by individuals, communities, or DAOs for solving a problem tomorrow that prompts entrepreneurs, organizations, and nonprofits to be rewarded in building public goods like Ethereum. and other welfare goods.
Even though Buterin believes in retroactive funding, the Ethereum community has chosen to go ahead with the Ethereum improvement proposal 1559, which will burn Ether (ETH) (the base fee) instead of using that flow of capital. to permanently fund organizations and individuals who contribute to the creation and maintenance of public goods.
Related: London hard fork of Ethereum puts ETH on a more deflationary path
For some, it is easier to spend money than it is to coordinate and finance public goods. As an avowed humanist, this disappoints me greatly. This fundamental shift would have been a tremendous support for research, development and innovation that maximizes community benefits and the prosperity (rather than survival) of more transparent nonprofits. Developments in this space would make incredible progress for Ethereum and society in general.
The building blocks are there for humans to coordinate and reward those who create lasting impact. NFTs, DAOs and retroactive public funding help prioritize humanity. We are at a monumental time for pro-social organizations, where public goods such as ending world hunger, upholding human rights and economic empowerment can be designed for the long term.
This article does not contain any investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research before making a decision.
The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Manuel Gonzalez Alzuru is the founder of DoinGud and a mechanical engineer, serial entrepreneur, avowed humanist, solarpunk, nomad and DAO / governance / NFT enthusiast. Its original idea is FightPandemics (building resilience in an emergency). He is also the hyper dot connector at API3.org (a DAO for decentralized oracles) and is actively engaged in many other DAOs (MetaCartel, Inverse and Gitcoin). Previously at Rocket Internet-Jumia (Africa’s largest market) and Brickblock (symbolizing real-world assets like real estate), Manuel is currently developing social media and the DoingGud NFT marketplace, reinventing the creator and empowering the economy. .