- Community Fund
- Blockchain for Good
- $ 3,303 Community Contribution
- 23 Contributors
- 538 Votes Received
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.
- 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.
- 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.
- 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