Please describe your proposed solution.
We propose to create a scalable framework and network that will assist in the legal registration of Non-Profit Organization NFT projects that are run to maximize their ESG impact while offering financial incentives to their donors. The administration of the NPO will remain focused on the ESG impact, while the community, supporters, and donors will be given the option to exercise for-profit objectives.
We propose the first case study of this framework to be the Gender Unicorns, the first NFT card game supporting gender diversity and equality. This project is self-funded by the submitter of this proposal, along with several more team members of the main Gender Unicorns team that can be seen here: https://genderunicorns.com/#team. The project will feature 20+ gender identities, interactive game alliances, a dedicated gender Wikipedia, and more. You can see our gameplay demo here: https://genderunicorns.com/.
Impact
There are several impact groups from this legal framework:
a. NFT Non-profit projects and initiatives
NFT Non-profit projects and initiatives will have open access to a straightforward framework that reveals the requirements, restrictions, pathway, process, and associated costs for becoming a registered NPO.
This will help them to minimize their time and efforts in this lengthy legal process, become more transparent in their activities, gain more credibility among their stakeholders, find more ways to engage and interact with their communities and supporters, help raise more funds and awareness for their causes, and maximize their social impact by being more data and community drive.
b. Traditional Non-profit projects and initiatives
This framework may also benefit established non-profit projects and initiatives that are not yet in the NFT space but wish to find new ways to engage with their communities and supporters while providing additional incentives to their donors.
Those projects will not be required to have the NFT element as a pillar of their services (in contrast to NFT-oriented non-profits) but will be able to add a new component to reward their donors for their contributions. This will help bring more awareness and credibility to the broader NFT and CNFT space.
c. Beneficiaries of non-profit projects
By creating this framework, a significant number of non-profit projects will be able to incorporate and get access to more funds and distribute those funds more transparently and directly to the beneficiaries.
The beneficiaries may also be eligible to use the NFTs and their verifiable, trustless features to get more actively involved in the community, increasing trust and connection with the administration team.
d. Donors/supporters/volunteers
All donors and supporters will have additional incentives to participate in each NPO-NFT project unavailable in traditional NPOs. More specifically, depending on the level of donation/contribution NFTs will be granted as gifts that will hold reputation or/and financial incentives. The NFTs will be limited and can appreciate if the NPO becomes bigger and grows its impact. It will also allow the potential of a passive income through lending those NFTs to unlock specific features such as participation in events, communities, awards, contests, games (like the Gender Unicorns), and knowledge bases (like the Gender Wikipedia), and more.
e., the Catalyst community
The Catalyst non-profit / ESG projects will find a tested framework and a network of collaborators that will help apply for an NPO status and prove their commitment to their causes with transparency and credibility. This will help establish a broader community of ESG projects from the Catalyst Community and beyond that will collaborate and use synergistic partnerships and economies of scale.
f. the broader Cardano community
The broader Cardano Community will benefit from a stream of transparent non-profit projects that will bring new awareness to the Cardano Ecosystem and its inherent advantages regarding transparency, decentralization, equality, eco-friendliness, and scalability. People interested in supporting the social impact goals will get to know the charitable side of our community and how we can work to improve life not only on a technological level but also on a social level. Beneficiaries of that new breed of NFT-NPOs will be able to find out about the Cardano Ecosystem and raise more awareness about it among their peers.
g. Our organization/team
We will be able to focus all our time on this project as volunteers or employees without being distracted or influenced by speculative gains. Instead, we will solely utilize our resources to maximize the impact and fulfill our ESG objectives while giving solid incentives to potential donors to support our cause.
Please describe how your proposed solution will address the Challenge that you have submitted it in.
Our NFT-NPO legal framework will offer free-to-access, open-source best practices for registering Non-profit NFT projects and Non-profit organizations.
This framework will minimize the research time and costs associated with such registrations. It will open the path for more ESG projects to maximize their impact through the power of Cardano NFTs.
The framework will additionally provide a more comprehensive, interactive way of involving all of the associated stakeholders (team, donors, beneficiaries, volunteers) by utilizing NFT features and NFT metrics.
Impact valuation will be directly measured and associated with the NFT holder metrics:
- the number of donations corresponding to the issuance of NFTs
- the number of users holding the NFTs
- the number of users playing an associated NFTs game (in our case, an NFT card game)
- the number of users contributing to the community Wikipedia, public forums, private servers
- the number of users creating social media clout and viral interest, attracting more users
- the floor price of the NFT collection
- the trading activity/volume of the NFT collection
- the NFT lending price per NFT
- the NFT lending passive weekly income and income variability
- other NFT metadata metrics customized to each NPO
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
The main risk to consider is that the legal framework and legal system of the main markets (starting with the US) that we plan to establish guidelines on the NPO registration may be utterly hostile to anything related to NFTs, regardless that the nature of the non-profit project will remain focused on a social cause.
Despite that risk, we are ready to push against a system that is resistant to change and put all of our influence and influence towards the acceptance of NFT non-profit projects and NFTs in general as a new technology that can revolutionize not only the technological status quo but also the status quo of operating charitable organizations.