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NFTs or non-fungible tokens have created a lot of opportunity over the past year.Data from market tracker DappRadar found that NFT sales arrive It will reach $25 billion in 2021. The growth of artwork NFTs in particular has been impressive.Financial services firm FinancePR recently Decide 257 artists have earned at least $1 million from selling NFT artwork in the past 30 days.It is worth noting that NFT trading volume continues to increasedespite the recent downturn in the crypto market.
However, with so much revenue being generated in a short period of time, some may wonder how the creators of NFTs can apply these new revenue streams. While this is a difficult question to answer, industry experts believe that NFT philanthropy is becoming a major trend as non-fungible token sales increase.
Alex Wilson, co-founder of The Giving Block, a nonprofit crypto fundraising platform, told Cointelegraph that the rise of NFT philanthropy reflects the general growth of the NFT industry. Wilson stated that NFT philanthropy started taking off about six months ago, noting that The Giving Block has seen more than $12 million in cryptocurrency, or 30% of its donations, from NFT giving programs:
“In most cases, creators sell their NFTs and then donate some (or all) of the proceeds to their favorite crypto-friendly charity. Since most NFTs are sold in ETH, many NFT-related donations also come in the form of Ethereum.”
Given the recent interest in NFT philanthropy, Wilson said The Giving Block is currently working with some major NFT platforms to simplify cryptocurrency donations by integrating the concept into their core products. “For example, we’re working with NFT platforms to ensure that when someone sets up an auction, they can choose a charity from a drop-down list and the proceeds will be automatically sent there,” he said.
In addition to initiatives by The Giving Block, Graph Blockchain, a decentralized finance and altcoin company, Announce On Jan. 24, the company has entered into a share exchange agreement with Niftable, a philanthropy-focused NFT company. The agreement will essentially allow Graph Blockchain to own Niftable after the acquisition closes.
Graph Blockchain CEO Paul Haber told Cointelegraph that expertise in focusing on NFTs in the philanthropic sector offers many benefits. He added that most charities today rely on volunteers and lack expertise in the emerging NFT world.
Betting on NFT Charity
While emerging solutions from The Giving Block and Graph Blockchain may be a game-changer for NFT philanthropy, artists and organizations have also started using their own resources to ensure that the proceeds from NFT sales go to good causes. Many of these initiatives focus on helping children.
For example, Sheqonomi is a project that uses NFTs to give back to children in need, especially girls in developing countries. Anu Bhardwaj, founder of Sheqonomi, told Cointelegraph that the rewards-based listening app is designed for low-income people who don’t have access to streaming services such as Spotify:
“This listening app podcast is designed for people to listen, learn and make money, especially during COVID-19. We built Sheqonomi on KaiOS, a $10 phone that has a partnership with Indian telco Reliance Jio .. This will incentivize 150 million JioPhone users to listen, learn and earn digital assets and rewards in the near future.”
Bhardwaj further explained that users who listen to the app have the ability to earn reward tokens as an incentive to provide user-generated data to the platform. Listeners can then keep these tokens in their virtual wallets or spend them on NFT artwork that will soon appear on Sheqonomi’s platform. Bhardwaj said:
“On March 8, 2022, International Women’s Day, we will be opening an NFT gallery where people can use their tokens to buy art NFTs. Proceeds from each sale will be donated to participating charities on our platform. For example, at least 25% of NFT sales will go to the National Institute for Women, a 501(c)(3) nonprofit that supports the stories and issues facing young women and girls.”
According to Bhardwaj, the platform uses NFTs for charity because these digital assets represent the voices of women and girls around the world. “The main thing we want to focus on is sacred feminism in all its forms. For example, one of the NFTs that will be shown in our gallery was created by an 8-year-old girl who wants to donate 50% of the proceeds to refugees.”
Additionally, Bhardwaj noted that using NFTs to give back allows the platform to continuously add charities to its platform, while letting users know exactly where those funds are going, thanks to the transparency provided by blockchain technology.
The concept also resonates with UNICEF or UNICEF.To mark the 75th anniversary of UNICEF, the agency roll out 1,000 NFTs to support digital connections between schools in underserved communities. UNICEF has teamed up with data visualization scientist and artist Nadieh Bremer to create the Quilt Kingdom series.
Chris Fabian, co-founder and head of Giga, UNICEF’s global school internet connectivity initiative, told Cointelegraph that all proceeds from UNICEF’s sale of NFTs go to support Giga:
“The entire sale generated 235 ETH worth of revenue. Just by minting NFTs, we raised 175 ETH. We then auctioned off a unique piece for 40.9 ETH. Finally, royalties from OpenSea allowed us to Being able to get 20% back from the secondary sale, we’ve generated 20 ETH. We’ve raised a total of 235 ETH, all of which goes back to UNICEF.”
To date, Fabian explained, Giga has connected more than 3,000 schools to the Internet, benefiting more than 700,000 children, and created more than 1 million maps to help identify investments in connectivity.
He explained that using NFT proceeds allows Giga to introduce a new community of donors seeking opportunities for social good through cryptocurrencies. Additionally, Fabian mentioned that the utility behind UNICEF NFTs enables donors to continue to give back to underserved communities. “It’s refreshing that we’ve changed the way we look at NFT utilities,” he said.
In another example of NFT artwork being used for charity, American entertainment company iNDIEFLIX recently released a anxietywhich contains a series of film NFTs focused on raising awareness of children’s mental health.
The film will be available until January 31, 2022 on the blockchain network created by digital content management company Eluvio.
Scilla Andreen, Producer anxiety And COO iNDIEFLIX told Cointelegraph that the production company hopes to use the movie NFT to create a marketplace for ideas to connect directly with the movie’s audience. “We wanted to build community with one story. COVID hit everyone hard, so we took a hybrid approach, delivering content through different models, NFTs being one of them,” Andreen said.
Andreen explained that viewers can easily claim free NFTs by creating an Eluvio digital wallet on the movie’s event page. There are three community NFTs, each containing 10,000 unique non-fungible tokens on a specific topic related to the movie:
“The NFT is designed to symbolize the three stages of anxiety: Revelation (normalizing and addressing our most common fears), Action (tips and tricks to help kids hack their brains to create calm), and Change. There will also be an airdrop to the community after the event. A special thanks to NFTs. Each NFT is associated with metadata containing video clips from Angst.”
While the NFTs in the movie are offered to viewers for free, Andreen shared that a “special movie” NFT will be available for purchase. She said 50 percent of the proceeds from the auction will be donated to Jack.org and Lady Gaga’s Born This Way Foundation, both of which focus on children’s mental health.
Michelle Munson, co-founder and COO of Eluvio, told Cointelegraph that her company has been working on integrating blockchain technology with digital media content for years.For example, last August, Fox Corporation Strategic investment in Eluvio Help develop Fox’s NFT business model. Munson explained that NFTs enable a mechanism for realizing value and engagement through film content:
“NFTs are a new form of digital identity that can help reach young people. However, the story behind it is that NFTs can also be very profitable. NFTs can be seen as a way to finally provide a new type of equity financing, through NFTs as a district Blockchain equity. This is a huge area and our company believes it will accelerate rapidly. Many projects are using NFTs to engage with audiences while funding their own work and charitable initiatives.”
Challenges may hinder adoption
While NFTs for charity are undoubtedly a growing field, there are still challenges that can hinder adoption.For example, as NFT sales grow, some Scams have plagued the space. Therefore, both donors and organizations must carefully consider each nonprofit that accepts NFT donations.
For example, Wilson mentioned that The Giving Block has reviewed every nonprofit that the organization works with, noting that these are registered charities. In terms of ensuring donations actually reach their intended recipients, Wilson added, The Giving Block is automating its distribution or payment model. “For example, on a platform like Foundation, you can set up a payment address to automatically send some (or all) of your earnings.”
Aside from the technical challenges, Munson noted that she believes the biggest challenge surrounding NFT philanthropy is awareness. “We need to educate the world about the possibilities. We really need to keep expanding the possibilities of NFTs.”
Even with the current challenges, NFT philanthropy is expected to be an ongoing trend. Alex Salnikov, co-founder and head of product at NFT marketplace Rarible, told Cointelegraph that there has been an uptick in NFT philanthropy efforts recently. Salnikov said that while the number of donations is impressive, the fact that NFT community members are first-time donors is equally important:
“This brings a whole new audience who may be more generous than investors in other industries. This trend is creating a group of people who are more willing to donate through NFTs and cryptocurrencies, whether for tax reasons or simply because they are more Willingness to accept on-chain assets rather than fiat assets handled by a central authority.”
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