Breathe
Next week Save The Children and the Defilantropy platform will launch the first campaign where donations are converted into tokens, a cryptocurrency derivative, which will give donors control and transparency over what and how their money is used.
Daniel Molano is half Colombian and half Mexican. He lives half the time in Silicon Valley and half the time in Mexico City. But he is 100% digital entrepreneur.
He is only 34 years old and has already founded 11 startups. "Seventeen years ago I sold my first company. I did very well financially from very early on and in every business I started. I had more and more money, a lot of it. The more material and superficial goods I accumulated, the emptier I felt. Real money doesn't make you happy," he tells me with a huge smile from the other side of his computer screen, because he found a few years ago his Why (that "purpose" that the famous Simon Sinek came to instill in us).
In March, together with a group of friends, he created an unprecedented platform to take advantage of the blockchain, that digital and open "big book" where cryptocurrency operations are based. The idea is to increase the transparency and fundraising of civil organizations.
It's called defilanthropy.org and it's a futuristic new way for associations to climb into the meteoric world of digital money.
"I am part of the crypto movement as a way to solve problems," Molano adds, and lets loose with a series of facts that led him to end up creating this platform:
- People have lost confidence in institutions, governments and companies.
- Donations need a mechanism for transparency in the collection and use of this money.
- Donations have fallen in all countries of the world.
- It takes organizations 30% of their resources to raise money.
- In Mexico, 50% of the income from donations to civil society organizations goes to administrative expenses and the search for those donations.
- Civil associations are not very professionalized and make little use of technology to be more efficient.
"The big change is the decentralization of the organizations and the real participation of donors in each cause," adds Daniel Molano.
Save The Children Mexico will be the first to use Defilantrophy for fundraising. In fact, it is one of the first that has not been afraid of digital currencies and has been receiving crypto donations since 2013.
How will this new fundraising method work? For every 300 pesos a person donates to Save The Children, they receive six Dephilanthropy tokens; influencers or ambassadors of the organization receive one token and another token goes to the fundraising platform (a tapatía company called Fondify) that raises money for social causes.
"The challenge is to 'tokenize' the entire donation network," he explains to me as he sees my increasingly disoriented face, "to make it transparent and give donors clarity on the use of those resources they have donated."
The intention of this new campaign is to double the fundraising ("only if we take away the 50% they spend on home management and fundraising") and attract more and new donors.
The goal is to deliver a total of 3,271 million tokens (equivalent to the number of people living in extreme poverty in the world) and capture 10 million dollars in 2022.
"I want to save the planet. And the only thing that will feed children and solve climate change is money. This model will allow us to maximize and make resources much more efficient to achieve this," adds Daniel Molano.
As a good "crypto evangelist", he fervently believes in this absolutely disruptive model that puts civil organizations in the era of web 3.0, and he drops before ending our talk a couple of stratospheric figures that justify his optimism of changing the world from a blockchain1) between 2020 and 2021 the flow of cryptocurrencies grew 600% in the markets he operates, 2) today all cryptocurrencies in the market are equivalent to 2.6 trillion dollars; to put in context, the global real estate market is valued at 4 trillion dollars, or closer, the GDP of Mexico is equivalent to 1 trillion dollars.
"It's an unstoppable, positive movement, the only thing that will save our planet," he adds.
The pilot test starts on Monday and in a few weeks we will be able to see if it becomes a new wave for the almost destitute civil society organizations to ride.
The opinions expressed are the responsibility of the authors and are absolutely independent of the position and editorial line of Opinion 51.
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