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Redefining Charity: How Crypto Is Being Used to Better Our Society

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by Andrey Sergeenkov · 4 min read
Redefining Charity: How Crypto Is Being Used to Better Our Society
Photo: MUNCH

Having launched less than two a month ago, MUNCH has already contributed to two charity projects to the tune of over $3 million.

Cryptocurrencies came about to offer individuals freedom over their finances. In a short period, the market has witnessed tremendous growth and adoption thanks to innovations such as smart contracts that have helped create decentralized applications that have helped decentralize most industries. One industry that has benefited the most is the financial industry, where decentralized finance (DeFi) has sought to decentralize all aspects of the industry from insurance to lending etc.

Also, as the adoption of various blockchains has grown, so has the value of their utility tokens. According to reputable crypto market trackers, today, the market boasts over 10,300 coins with a valuation of over $1.54 trillion. The tokens belong to projects covering all sectors of the economy, such as transport, sharing economy, music, energy, sports, tourism, etc. After managing to grow over 10x over the past year, the crypto market has created plenty of wealth for those involved.

Rise of Crypto Charity Projects

This has seen a rise in projects looking to give back to society, especially after the onset of the Covid-19 pandemic through social causes that aim to eradicate hunger, disease and fight for the rights of the oppressed and disadvantaged groups. Most of these projects are based in DeFi and will take donations from their investors and send them to a charity. However, these projects send the donations to their own private wallets, which causes concern, especially from those making contributions since there isn’t a way to prove that these donations will get the intended group of people. Also, most of the projects make donations using their tokens which can tank their value whenever a considerable donation is made. This isn’t ideal for investors of the project and can appear as market manipulation.

These problems have led to the birth of the MUNCH project that allows users to give back to charitable causes by buying and selling its token. MUNCH is the first project to offer value to participants of a charity where part of transaction fees charged are allocated for donations. Also, you can hold on to your MUNCH tokens and earn passively. The platform charges 10% fees on all transactions, with 50% of the fees sent to the donations wallet and the remaining 50% distributed among token holders. This process is automated.

And to prevent tanking the value of the native token whenever a considerable donation is made, the fee is instantly converted to ETH at the point of transaction and directly sent to the charity wallet. Besides avoiding devaluing the token price, the project uses ETH since it’s more of a stable currency than other DeFi tokens.

Another edge this project has over other crypto charities is that it is community-run, where members decide which causes they would like to support. The project will vet a bunch of charities and compile a list of those they find fit to receive donations. The list will be shared with community members on the Telegram channel, where members vote on which charities should receive the donations and in what ratios.

Chance to Bite Back with MUNCH

So far, the project is focused on charities trying to eliminate hunger, fighting the coronavirus, those that cater for children, women, and any other at-risk populations, and those fighting for human rights.

Having launched less than two a month ago, MUNCH has already contributed to two charity projects to the tune of over $3 million. Among the beneficiaries is the Yellow Brick Project that aims to research and cure those impacted by HNRNPH2.

By choosing to go with the name MUNCH, the project keeps up with the hype of food-themed DeFi projects that are hype and users can associate with easily. This is why the project claims to offer users the opportunity to bite back at poverty and other global issues with MUNCH.

Altcoin News, Blockchain News, Cryptocurrency news, News
Julia Sakovich
Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.

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