The New Philanthropic Frontier: How Web3 Could Democratize Giving

A philanthropic DAO would transform fundraising, grant distribution, and nonprofit management into a truly transparent and democratic process.< /p> Opinion

A merger between crypto and philanthropy is already underway as Decentralized Autonomous Organizations (DAOs) and non-fungible token artists raise funds and donate crypto to nonprofits. But what does the age-old institution of philanthropy have to learn from emerging technologies in the crypto space? Also, what does crypto have to offer philanthropy that could improve the industry in general?

Crypto provides the ability for nonprofit organizations to be governed in a decentralized way, creating conditions that maximize the influence of the communities most impacted by these organizations.

Despite his reputation memes sometimes , the crypto industry is actually in the midst of a major push towards true democracy. This effort begins by leveraging blockchain technology which has created the conditions for decentralization.

Blockchains can host smart contracts, a kind of untunable code that automatically enforces rules, removing the need for central authority figures. Rather than an individual or group responsible for operations, it is possible to interact with smart contracts through a token vote. When blockchains are built with tokens and smart contracts, they enable online communities to create token-powered self-governance systems called decentralized autonomous organizations.

What if an organization nonprofit structured itself as a DAO in...