When you think of DeFi platforms, what features come to mind first? For most people, visions of staking and farming protocols are the norm. However, there is a new feature that has started to emerge on some select platforms as of late that has serious potential to upend industries - charitable systems.
This month has seen a few DeFi platforms integrate a charitable aspect into their core features. Networks such as MUNCH are pioneering these efforts in some unique ways. For example, the MUNCH ecosystem is the first to integrate an automated charitable donation mechanism in a trustless and sustainable way.
Notably, this approach is one of the most advanced to enter the market to date. It’s also one of the most effective strategies because it automates the entire process of giving. Every time a user sends a transaction, 50% of the fee gets redirected to a charitable smart contract. This approach introduces some interesting benefits to the sector.
For one, it eliminates any chance of donation fraud or scamming. Charity scams have cost groups millions and continue to plague the sector. Since the entire MUNCH donation process is handled by advanced smart contracts, there is no human intervention required. Consequently, the donation is conducted autonomously and with great efficiency. In this way, MUNCH can provide unmatched transparency in the market
This strategy is particularly powerful when coupled with the open nature of blockchain technology. The current systems in place lack the security and verification systems that are inherent with these networks. For example, when you make a donation to your favorite cause, in most instances only a small portion of those funds ever make it to the actual cause.
MUNCH's strategy eliminates the middleman and provides users with the ability to track their donations all the way to their destination using multiple avenues. Users can verify the network’s donations directly from the platform or through tracking tools provided by the organization.
In addition, the MUNCH community carefully vets all the charitable groups selected to be part of the program. Only the highest quality organizations make the cut. Notably, these groups are not randomly chosen. Rather they are submitted via the community. In this way, MUNCH is prepared to expand to meet the needs of the community as they develop.
The Community Makes the Final Say
MUNCH users are the ones who get to decide where the network's charitable funds will end up. The community introduces an approval process to streamline these changes. MUNCH token holders can put forth their favorite charitable organizations for review. These platforms are carefully vetted and voted on by the community.
If your submission is approved, your charity will join the list of organizations integrated into the MUNCH charitable smart contracts. Every month, the platform selects one of these approved networks to receive its donations. This strategy is more effective than making small donations to a variety of charities every month as is the case with some other charitable DeFi platforms.
Transforming Network Fees into a Better World
The internal functions of the MUNCH network are designed to make participating in the platform as easy as possible. For example, there are no extra steps required to join in the charitable aspects of the platform. The protocol gathers these funds via a 10% transaction fee.
This fee is then split in half. The first half of these fees get redistributed to the MUNCH token holders. The final 5% becomes the charitable donation sent to approved organizations. These funds are trackable and verifiable via the Ethereum blockchain.
While this percentage may seem higher than the competition, there are some vital facts that ensure this approach is sustainable including advanced deflationary systems. Also, you can easily track the network’s donation level via the protocol directly or the charity. For example, the network recently concluded a successful campaign with the Givewell Charity group in which +2 million dollars was donated in less than 30-days.
The List Expands
As you can imagine, there is now a drive by kind-hearted individuals to get their favorite charities listed on the network. Currently, the network lists Givewell Charity, Yellow Brick Road, and the India Covid Relief Fund as options. This list is set to expand rapidly in the coming weeks as the community submits and approves new options. You can join the network and submit your favorite charities with ease utilizing the voting system.
Expanding Crowdfunding Features
The development team behind MUNCH seeks to integrate some additional crowdfunding features for enterprise and startup clientele. In the coming months, the platform will unveil its Launchpad feature. This option will streamline the crowdfunding process for projects seeking a secure and efficient means to access global capital.
A Long Term Strategy
Another feature that has helped bolster faith in MUNCH is its token lock. The developers recently extended the network's token locking protocol on Uniswap. Token locks are crucial to the DeFi sector because they prevent developers or whales from removing large amounts of liquidity from the platform without warning. As such, liquidity locks are quickly becoming the norm for security-focused DeFi investors.
MUNCH is set to become one of the premier charitable DeFi platforms within the Ethereum ecosystem. Ethereum-based DeFi platforms provide users with unmatched interoperability within the market. For example, MUNCH users can store their tokens in any ERC-20 compliant wallet. They can also trade their tokens on top DEXs (decentralized exchanges) such as Uniswap and Sushiswap.
In the near future, developers intend to launch a BSC bridge. The bridge protocol will enable users to convert their ERC-20 MUNCH over to BEP-20 MUNCH. This maneuver will open up the network to the Binance Smart Chain’s ecosystem, including popular DEXs like PancakeSwap.
MUNCH - A Promising Prospect
The MUNCH protocol encompasses some of the best aspects of the decentralized economy. It’s transparent and secure. Additionally, it sticks with the core DeFi theme to help those less fortunate gain much-needed access to critical financial services. MUNCH’s development team intends to unveil a host of new features in the future including a crowdfunding protocol built to support social causes. You can expect to hear a lot more from this project as they continue to add more charitable organizations to its roster.