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Tokenized Impact Bonds (TIBs)
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  • DAO
  • Philanthropy
  • Community Fund
  • Charity
  • Metaverse
  • NFT
  • Governance
  • Altruism
  • Blockchain for Good
  • Web3

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Life-time
Contributions Received

  • $ 3,303 Community Contribution
  • 23 Contributors
  • 538 Votes Received
Vision
Web3-Native ESG powered by Pay for Performance Smart Contracts
Description

A platform for scaling evidence based interventions; improve the performance of your funding through outcome based financing.

Challenges for Social Services

  • Highly Centralized: Risk to organizations when donors are unable to continue support

  • Lacks Accountability: Once a grant is approved, outcomes arising from interventions are not tracked over extended periods of time.

  • High Risk:Funding social services carries a lot of counter-party risk, including misuse of funds, fraud, ineffective use of resources etc.

What are Impact bonds?

Impact bonds are outcomes-based contracts. They use private funding from investors to cover the upfront capital required for a provider to set up and deliver a service.

The two common type of Impact Bonds

A social impact bond (SIB) is a pay for success contract with a bond guarantor, whereby it pays for better social outcomes in certain areas and passes on savings achieved to investors

Development Impact Bonds (DIBs) are a performance-based investment instrument intended to finance development programmes in low resource countries.

How Impact Bonds Work?

  • Outcome Funders Commission an Impact Bond.
  • Risk Investors fund interventions through service providers.
  • Service providers deliver intervention to target population.
  • Independent evaluators validate the effectiveness of intervention.
  • Outcome funders pay for the results.

Challenges with Impact Bonds

  • High Barrier to Entry
  • Complex Legal Structures
  • High Monitoring and Evaluation costs
  • Illiquid Asset Class
  • Time Consuming

Opportunities with TIBs

  • Reduce Donor Influence
  • Reduce Monitoring and Evaluation costs
  • Liquid and tradeable impact bonds
  • Reduce reliance on trust

TIBs Token Model

Lootbox NFT (Risk Investors)

  • Organisations issue lootboxes to raise funds for their mission and create NFTs (TIRs/TORs) auditing their use of funds.
  • Lootboxes are used to create a distributed pool of intervention funders.
  • Lootbox holders obtain a collection of NFTs for interventions made by social enterprises and the outcomes derived from it.

Tokenized Intervention Reports TIR (NFT)

TIR is dropped to lootbox holders when a social intervention has started from funding raised through lootboxes.

Tokenized Outcome Reports TOR (NFT)

  • TIR converts to a TOR when the intervention results in an outcome. At this point, outcome funders can buy out risk investors along with predetermined returns.
  • TOR can be deposited in treasury to redeem Governace Tokens.

Impact Backed Tokens (Outcome Funder)

  • The utility token of the ecosystem, IBT is burnt to leverage services of the DAO.
  • IBT is a measure of impact, as it is minted in a 1:1 ratio to the dollar value invested.
  • IBT is minted when an intervention (TIR) results in a meaningful and measurable outcome (TOR) and is bought out by outcome funders using automated matching tools.

Metaverse

  • Minting Land using IBT on our native Metaverse maps; building wormholes for bridging other maps.
  • Real world calamities and pressing issues are replicated in the Metaverse by creating events; this can be mitigated by users burning IBT and buying Loot-boxes to redeem in-game items.
  • Using offerwalls and paywalls to allow users to build and play in the metaverse and fund impacts passively.
  • Creating guilds of people from different socio-economic backgrounds; bringing them together through our immersive experiences to work on different cause areas.

Governance Tokens

  • A Reserve Currency backed by NFTs of impactful social outcomes.
  • Governance tokens are used to mint lootboxes and a percentage of total donations need to be burnt to unlock funds.
  • Used for effective Reputation Management by weighted quadratic voting for audits and outcome evaluation.
  • Creating Bounties to resolve issues with the help of other stakeholders of the DAO ecosystem.

How TIBs is disrupting Current Impact Bonds Model

  • Lootbox Buyers and Outcome Funders provide a crowdfunded pool to service providers.
  • Providers Issue NFTs (TIR) for the service delivery to a target audience.
  • Incentives can be programmed to leverage community, volunteers and beneficiaries to act as evaluators when feasible.'
  • Data-Driven external Validation can help lower MEL costs
  • TIR converts to TOR when outcome is evaluated. Risk capital is bought out.

Value Proposition

  • Building a robust community of altruists.
  • Databases of effective social interventions.
  • Self-Sovereign autonomy.
  • Creating a Web3 Native ESG ecosystem.
  • Creating a Digital asset from social services.

To read full form Concept Note Kindly use github link

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