DAO + Charity: Creating Trust Within the Industry

DAO + Charity: Creating Trust Within the Industry

Problems in the Field of Philanthropy

In the development of the charity sector, charity groups have encountered a myriad of problems, due to factors such as the lack of transparency and accountability mechanisms, as well as restricted ways of accepting donations. These problems are summarized below:

1. Low Work Efficiency

Traditional public welfare organizations typically have low efficiency. Donations are first deposited into the accounts of a charity organization before being directed into the relevant causes. Such a cumbersome process may lead to high labor costs and long delays.

2. Lack of Transparency

Traditional charities often lack supervision and auditing, and information about their operations is not made public. There are few watchdogs available to ensure that these charities are doing the right things; news media tend to avoid negative coverage due to inherent biases, while there are no clear guidelines for internal managements to adhere to.

3. Opaque Operational Processes

In traditional non-profit organizations, information with regards to the fundraising process, along with how these funds are utilized is not accessible to everyone. Organizations can easily misappropriate funds in clear violation of regulations or even falsify data. As a result, these charity organizations may not contribute effectively to public causes.

The Solution: Incorporating DAO into Charity

DAO stands for ‘Decentralized Autonomous Organization’, which also represents the Web3 structure of an enterprise or organization. As a pioneer in the decentralized DAO sector, HyperDAO hopes to help non-profit organizations, charities, universities, individuals, and other mission-oriented organizations around the world. When it comes to philanthropy, HyperDAO hopes to help those who need it the most. The team intends to create a “charity protocol” by incorporating the DAO model into charity, and based on this protocol, allow more partners to focus their resources on improving the world.

What is a “Charity Protocol”?

HyperDAO is a multi-chain, decentralized platform connected to multiple blockchain networks, such as Ethereum, Polygon, and Binance Smart Chain (BSC). The protocol is designed to assist charities in their fundraising process through our extensive donor base. HDAO token holders can participate in the decision-making process through a DAO model. Some benefits include:

1. Reduce Operating Costs

HyperDAO’s “Charity Protocol” provides a distributed ledger, supports on-chain query for data retrieval, and has inherent data transparency characteristics. Sharing information on charitable projects through blockchain allows more charities, universities, individuals, or other mission-oriented organizations to easily participate in new charity initiatives. No tedious manual review process is required, and all donations can be monitored on-chain automatically, which effectively reduces operating costs.

2. Traceable Donation Funds

All donations, regardless of their size or denomination, will be publicized on the blockchain. Relevant personnel can query and trace each transaction, regardless of the size and scale of the charity organization. Peer-to-peer queries can be easily performed, which may serve to address any potential security issues.

Due to numerous scandals in the field of philanthropy, trust within the sector has been steadily eroding. As a DAO, HyperDAO hopes to make more donors believe in the power of charity through its “Charity Protocol”, so that donations can help more people in need.