As both blockchain technology and crowdfunding are relatively new concepts a meeting of these giants was somewhat inevitable. However, it seems Crowdfi could be the first pout of the gate with a working platform. Crowdfi is, as you’d expect from the intro, a decentralised crowdfunding platform. The system is built on The Ethereum Blockchain but don’t sign up expecting the latest board games or a cheap 3d printer, Crowdfi is firmly a social enterprise meaning it’s exclusively for projects which will help in a socioeconomic fashion.
“If we’ve learned anything over the last few years it’s that we can’t predict the future. With the global pandemic and the current land war in Europe it’s safe to say, as the Chinese curse goes, we live in interesting times. We wanted to do something for the most vulnerable. We know the crypto community is incredibly compassionate and socially aware of the struggles the least fortunate amongst us face. So, Crowdfi is a platform where those in the most need can come and ask for some support. Best of all everyone who donates to one of our causes can earn rewards as each donation includes a 4% transaction fee 75% of which is fed back to token holders.” A spokesperson for Crowdfi
The system works in a similar way to yield mining in that by investing in the token and donating to a cause gives investors a 75% share from all subsequent transactions. So, not only will donations eventually ease the suffering of others, active backers and token holders will earn reflections as the total donation grows.
Blockchain aside, the system works like most traditional crowdfunding sites, if it’s possible for an industry barely a decade old to have traditional versions. Users sign up and launch their campaigns by creating emotive pitches and videos, spreading the word, and hoping to pick up enough backers to see them over the line. Backers then donate in the native Crowdfi token and like we said they can earn 75% of every subsequent transaction fee based on the number of tokens they hold. The campaigns then run for the duration and if successful at the end of their term the funds are transferred.
Because the system is based on blockchain technology the whole ledger is immutable, therefore making the platform safer than traditional, there’s that word again, crowdfunding platforms. The Crowdfi platform has multiple categories at present, but the top six are as follows:
Despite being in its infancy, Crowdfi already has two live campaigns, both of which are excellent causes and are already collecting donations. Time will tell if Crowdfi becomes the flagship of DeFi crowdfunding, but for now they are off to a good start.