How could the Cardano technology be leveraged to build new solutions for positive impact valuation and monetization?
This is the total amount allocated to F9: Catalyst Natives X Cardashift: Demonstrating and monetizing impact
Cardashift aims to empower every human being to build a sustainable world through Cardano protocols. Our first product is a community-run launchpad to fund and accelerate impact projects. Helping these start-ups to monetize the impact they generate is a hot topic for us.
The idea of leveraging blockchain technology for this purpose has been further explored by other protocols. The most famous example is the IXO protocol with the creation of "Impact Tokens". These aim at representing "real world outcome states that people care about". The tokenization of verified outcomes through the ixo protocol thus transforms traditional certificate-based representations of outcomes (e.g carbon reduction certificates, education certificates, vaccination certificates, biodiversity certificates or any other certified outcome state) into tradable and investable digital assets.
However the ecosystem is still nascent and the question remains opened:
What kind of tools, interacting on-and-off-chain, can we develop to measure and value impact financially?
This challenge combines several themes in one. Monetizing impact requires the development of an entire ecosystem:
These development paths are obviously interconnected and the research can mix blockchain and non-blockchain approaches.
Today, there is a gap between the perceived value for society of impact projects and the financial value they capture.
To resolve this inconsistency, two key steps are necessary:
These topics of valuation and monetization were already present in the definition of impact investments set by the Global Impact Investing Network (GIIN) in 2009: “Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.”
Since then, many impact-oriented actors have been working hard on improving the standards and valuation tools.
Cardano can be a gamechanger on this worldwide mission for saving the planet and humanity by bringing three key elements to the infrastructure: traceability, transparency and liquid marketplaces.
Our ambition is really to tackle one of the pain points of the impact ecosystem: the lack of financial attractiveness of impact projects. So, we want to focus on impact-oriented solutions and not projects that prioritize only ESG criteria. Success for this challenge:
For impact valuation & monetization projects:
For any marketplace projects:
During the challenge:
For the longer-term:
Impact Management Project’s report on Impact Monetization : https://29kjwb3armds2g3gi4lq2sx1-wpengine.netdna-ssl.com/wp-content/uploads/IMP_Impact-monetisation-discussion-document.pdf
Social Impact Bonds:
The example of voluntary carbon markets:
Protocols around impact monetization:
Cardashift is providing $200k of CLAP tokens which is the funding for all challenge rewards in this challenge. Once the funded projects have been identified, Cardashift will be responsible for providing the funding and incentives to eligible participants (proposers, CAs, referrers). Cardashift shall, in its discretion, determine the suitability of the project proposals selected by the Catalyst community and carry out any checks or diligence before engaging with such project teams. The Service Provider does not guarantee the outcome of any project or make any representation that a project proposal shall achieve the objectives of the Customer, even where such objectives are known to the Service Provider.
Proposers: Successful proposers will be funded in CLAP token. Please be aware that you are responsible for providing a valid Cardano Wallet address that can receive CLAP tokens. When applying, please specify in the address field of the proposal submission your Cardano Native token compatible address.
Community advisors: You will receive CLAP for the eligible VCA and CA rewards and will be sent to your nominated Cardano wallet address.
Referrers: You will receive CLAP for the eligible referral rewards that will be sent to your nominated Cardano wallet address. 1% of the CLAP challenge fund will be shared between eligible referrers.
View all the ideas that were allocated funding in this challenge.