Proof-of-Donation

November 21, 2023 - Around 2 mins mins to read

Understanding Proof-of-Donation

Proof-of-donation refers to the integration of charitable contributions into the functionality of a blockchain. This concept involves redirecting funds, which are determined by a smart contract and activated with each transaction, towards a charitable destination. The charitable donation can be directed to a wallet owned by a charity or a separate fund controlled by a DAO or another party.

Proof-of-donation is a variation of the traditional proof-of-burn method, aiming to introduce altruism and sustainability to the blockchain transfer model. As blockchain activity expands, the programmatic redistribution of funds ensures that the charitable donations also increase, contributing to the sustainable growth of the network.

An example of proof-of-donation can be observed in the approach adopted by Hermez Network. In this case, coordinators compete for the opportunity to process transaction batches using the HEZ token. When a bid is successful, 40% of the winning bid is donated to Gitcoin, an organization supporting Ethereum public goods. Additionally, 30% of the bid is burned, and the remaining 30% is redistributed to the network.

Author:

Jordi Baylina is a highly skilled Solidity developer and a significant contributor to the Ethereum community. He co-founded the White Hat Group, which played a crucial role in recovering funds from TheDAO and Parity Multisig hacks. Jordi has authored various well-established contracts in the Ethereum space, including the MiniMe token contract and the elliptic curves Solidity library. He is also a respected auditor, leading teams in auditing projects such as the MakerDAO Stable Coin system and Aragon. Jordi is the founder of the donation platform Giveth, DAppNode, Iden3, and most recently, Hermez.