Proof-of-Donation: Charitable Actions in Blockchain

Proof-of-Donation is the integration of charitable donations into blockchain functionality.

What is Proof-of-Donation?

Proof-of-donation is the integration of charitable donations into blockchain functionality. Typically, it describes the redirection of funds set by a smart contract and triggered with each transaction to a charitable purpose. A charitable donation can be transferred to a wallet owned by a charity or to a separate fund, the funds from which are controlled by the DAO or another party.

Proof-of-donation is a modification of traditional proof-of-burn that aims to bring altruism and sustainability to the blockchain transaction model. As blockchain activity scales, given the programmatic redistribution of funds, proof-of-donation will also scale and contribute to the sustainable growth of the network.

An example of proof of donation is used in the Hermez network: coordinators bid for the right to process batches of transactions using the HEZ token; 40% of each winning bid is transferred to Gitcoin as a way to fund Ethereum public goods, 30% is burned, and 30% is redistributed to the network.