Social capital is built on the backbone of relationships within a group. It’s used to cultivate economic advancement for its participants through a shared purpose. Developing this in turn gradually allows the members of its ecosystem to become independent, which enables them to participate more meaningfully in creating good governance.
There are two concepts related to this — Bonding, which refers to values amongst individuals in a group with shared interests and goals, while Bridging is the creation of social capital across other groups. An example of the latter would be a neighborhood hiring a security agency, or a business working with a community for their Corporate Social Responsibility (CSR).
Thankfully, the internet has allowed for the proliferation of social capital, creating an infinite number of connections between groups and individuals for any occasion. The next challenge, then, is to bridge these silos and examine what tools can be used to best support the creation of values within and among various communities.
Traditionally, nonprofits and NGOs rely on donations and sponsorships from companies as well as individuals. However, there is no way to trace where and for what purpose these proceeds are utilized apart from occasional reports sent out via email. This creates a gap in the relationship between organizations and potential benefactors. To curb this, UNICEF for example has utilized technology in the form of a Crypto Fund. Adding this layer of accountability, traceability and security therefore gives them the ability to receive, hold, and disburse their funds strategically.
This is especially relevant for smaller organizations that need to establish trust within their ecosystem. UNICEF’s cryptocurrency fund promotes full transparency so that the public can track where the money is going and how it’s being spent. This pooled fund likewise serves as an investment vehicle for relevant technologies that benefit their purpose. An example of this is Utopic Studio, a platform that uses virtual reality to improve reading outcomes for children.
Another interesting application comes in the form of Farmer Cooperatives. They are creating a brand new experience not only for consumers of their products, but for every participant in their supply chain. Using blockchain technology, various information about the product can be traced back to the beginning of the supply chain. This provides an unprecedented level of transparency and accountability which not only affects how quality control processes are conducted, but also helps establish credibility and trust between suppliers and their customers. Moreover, it allows organizations like farmer cooperatives to thrive and gain equal opportunities.
“By partnering with MUNCH, charities would be able to generate a source of donations that doesn’t require any marketing or routing costs. Automating the process through blockchain technology, MUNCH represents a financial model with lossless donations to charitable causes that can be implemented in numerous fundraising use cases.”
MUNCH, a digital currency project that donates a percentage of their transaction fees to charities and organizations chosen by their community, has found success in bridging communities through shared social capital. Their first beneficiary was GiveWell, a non-profit charitable organization that curates other non for profit projects to their audience MUNCH provided grants for the highest-value funding opportunities that were related to the prevention of deadly diseases and improving the well-being of individuals.
Creator Tokens For Organizations — Philanthropy to Social Enterprises
While cryptocurrencies have mostly been tied to the concept of generating wealth, many overlook the fact that its primary benefit is in value creation. Organizations can utilize this technology not only to appeal to philanthropic causes, but also to provide value to various members of their ecosystem.
BitFans is a leading platform that enables organizations to cultivate their social capital with the use of creator tokens. In a few easy steps, you can mint a token for your group and design various incentives that will engage participants in new ways.
We are catering not only to content creators and businesses, but also to organizations. Our tools allow you to use creator tokens to design incentives and rewards for your entire community. As an organization, there is the possibility of creating value for beneficiaries beyond monetary incentives with no return. Imagine if you could create an inclusive ecosystem wherein you could collaborate with your beneficiaries to create incentives for potential donors.
For example, you could design your incentives around what the beneficiaries are building, which could come in the form of goods and services. Creator Tokens then act as a way for others to own a piece of that digital economy, as well as utilize them to gain access to your organization’s perks and exclusive content. When the organizations your are supporting scale, your community proportionally grows as well. Imagine being able to scale this model across various charitable institutions in your niche. This means that it will encourage growth within your ecosystem beyond philanthropy, because everyone with your organization’s creator token is also exposed to the upside of your growth as a brand.
An added benefit of hosting a community on BitFans is that there is a level of governance on top of the transparency. Traditionally, donors routed their funds to organizations that align with their philanthropic interests. Our technology allows token issuers to utilize polling tools that would give token holders access to voting rights on the direction of their platform, making it much more community-centric and giving donors a lot more say in how an organization’s funds could be used.
The BitFans platform is geared towards cultivating brand new forms of interaction and bridging interests among individuals, brands, and communities. If you belong to an organization and are interested in seeing how we can help enhance your current infrastructure, don’t hesitate to reach out to us using any of our socials: https://linktr.ee/bitfans