The crypto community just invented a decentralized approach towards giving. It is cheaper, efficient and awesome!

But lets stop for a moment and think how things work in a “centralized and trustful” environment. Supose you want to give $100 for people who are in dire need in South Sudan or in Venezuela. How would you do it?

You would probably select a reputable charity on sites like Charity Navigator. You would select an organization that works in such geography, take your credit card, fill the information and submit it. The credit card company would take a fee of 2%. The non profit would take another fee of 15% for administrative and marketing costs. Depending on the organization philosophy and strategy, it is unclear how much of the remaining 83% would actually get to the final beneficiary.

The cryptocommunity just created an amazing, trustless and decentralized way of distributing charitable aid. Enter “EatBCH”, an initiative from a 22 years old business student from Venezuela. His name is Jose and this is an interview with him:

Jose tells more about the situation in Venezuela in this video:

This approach was replicated by the Bitcoin Cash Community in South Sudan. Here is their Twitter: and their website. And it costs only the miners´ fee on the Bitcoin Cash.

At the same time, Brian Armstrong, founder of Coinbase just launched a new charity called GiveCrypto. Below you can see his pitch during the inauguration dinner:

In the video, Brian describes that it is time for cryptocurrencies to change from investment to utility and to be part of people´s lives all around the world. Giving crypto to the poorest people of the world is a smart move to increase the adoption, and thus the value of the network.

However, he claims that the biggest challenge will be the last mile distribution of such funds.

If you had USD$1Bi to distribute to the world´s poorest 1 Billion individuals. How would you do it?

I have been thinking a lot about this problem. In this previous post I describe that we got inspired by other projects to usebiometrics + smartphones, liquid democracy and Decentralized and Autonomous Communities to create a new way to connect Donors, Fund Managers, Oracles, Merchants and Beneficiaries to work together in a decentralized and trustless way.

Below is a diagram of the relationships among the users:

We want to do an ICO and create what we call Bonnum Network. An open source software based on EOS or Cardano´s blockchain that will unite all the actors in the same network to perform actions which are transparent and immutable.

With Bonnum Network Tokens, anyone could start a Decentralized and Autonomous Community to create a fundraising effort and give to beneficiaries in any geography. The more an individual or organization contributes torwards a DAC, in any cryptocurrency, the more vote one gets to vote for the “Oracles” (people like Jose in Venezuela), who will choose and subscribe the people who will be recipients. If the Oracle is discredited for a reason, the token holders can just withdraw their votes and choose someone else. That is liquid democracy at work.

In order to transfer $100 to a DAC, the donor would spend $1 in Bonnum tokens. Of that, $0.90 will be sent to a single Global Basic Income Fund and $0.10 will be burned. Thus increasing the utility of the Bonnum tokens and reducing its circulating supply.

Now… Imagine doing an ICO and 50% of the proceeds will be destined to create a single evergreen fund whose profits will be donated to the poorest people on Earth which will be chosen by Bonnum token holders.

The value of this Global Basic Income Fund will only increase as the value of Bonnum Tokens and the usage in the network increases. It is a global safety net created for the people, by the people. No need to involve corrupt governments as middle men. This decentralized and trustless aproach can potentially extinguis poverty from Earth.

This is a solution for the problem of how to distribute USD$1Bi to 1 Billion People. But how would the poorest people in the world HODL, exchange for fiat or pay with the crypto they got as donations?

This is what we are going to write about next.