We believe the ambitious goal of universal education can be met, by marrying the concepts of Network Philanthropy and blockchain technology with the opportunities afforded by new currencies and emerging markets opened up by mobile technology.
Network philanthropy is a disruptive model for fundraising and aid provision in a digital economy. It provides an open source marketplace that enables social enterprises to trade micro-payments for traceable and transparent impact.
We believe this could be achieved within the next 10 years, through a distributed funding model and building a positive feedback cycle as follows:
- Fundraising at scale (i.e. ~$21Bn per annum) we will achieved through distributed funding streams built into mobile payments (specifically “real time non-card payments” is forecast to provide ~$80bn of new revenue by 2018 growing at 8%).
- Real-world transactions processed through mobile apps attract a micro-fee captured by an open source Funding Network.
- Fund distribution is automated through a smart contract based direct engagement model to registered NGOs to build Impact Assets e.g. Child Friendly schools.
- Funding, project delivery and Impact Realisation is managed and remunerated through distributed verification on the blockchain ensuring radical transparency.
- Personal Impact Portfolios track every µ-donation invested providing a clear link between the action and impact (e.g. this Latte helped build that school).
- Constant positive reinforcement and proof of impact to the community will drive growth in the network and further distributed funding streams.
We believe that by creating an open source community of like minded people and organisations, we have a once in a lifetime chance to change the fabric of the economy and build a more equitable world.
We believe that a number of converging technologies and social themes (blockchain, mobile payments and the rise of the social consumer) provide a chance to solve some key challenges currently faced in fundraising, fund management and impact realisation.
This will allow us to scale impact significantly, without extensive centralized overheads or requirements for government control.
- Distributed Funding: Allows us to build micro-payments into everyday transactions, across millions streams with very low overheads ensuring that the system is never reliant on a single funding stream that can be cancelled.
- Direct Project Engagement: Reduces the intermediary organisations between an aid project and the consumer by providing funds directly to projects. Funds can be staggered against verifiable milestone delivery to further guard against corruption.
- Standardised Impact Assets: Ensure that we can measure and compare the performance of NGOs and projects against a common network metric (education hours delivered per $ invested) in order identify opportunities to improve efficiency in the network and prioritise investment.
- Personal Impact Portfolios: Will provide a complete overview of a person’s impact, allowing you to see and easily share via social networks the details of every project you have ever supported. Ongoing updates on impact (e.g. # of children graduating) and detailed proof of delivery (e.g. maps, photos, videos) will also be provided.
- Distributed Impact Realisation: Karma Coins on the blockchain will allow us to facilitate transactions as well as providing a mechanism for rewarding the community. Distributed impact realization and governance processes will provide the backbone of this reward model, whilst supporting the scalability of network.
Network Philanthropy is currently being built as an open source marketplace by social enterprise KarmaPay Pty Ltd. KarmaPay will establish a mobile payment application in order to kick start this movement and establish the first funding streams in early 2018.