A perpetual non-fungible token (NFT) collection called Teddy DAO is being launched by Web3 software business Lucky Friday. Its sales revenue is given to charitable organizations.Teddy DAO is collaborating with the international charity JustGiving with the goal of using cryptocurrency as a financing source to advance social impact globally.
On the cross-chain smart contract platform Moonbeam, Yumi, a digital artist, developed one of Teddy DAO’s teddy bear NFTs, which will be auctioned off every day starting on June 23. The proceeds from the auction can then be donated to one of JustGiving’s 400 recognized organizations, where the cryptocurrency is then converted to cash and transferred through the site. As part of its ambition to use bitcoin donations to help solve real-world problems, Teddy DAO eventually intends to use the 450,000 charities recognized by JustGiving.
Teddy DAO’s founder, David Chapman, told CoinDesk that the initiative was motivated by an NFT sale he held the previous year, during which he sold a one-of-a-kind collectible and raised $15,000 for the UNICEF humanitarian organization. He pointed out that this incident not only demonstrated the need for NFT-backed charitable donations, but also showed that the technique could be applied to onboard new Web3 users.
The majority of NFTs have been for-profit endeavors, and the few instances of charitable giving have involved one-time contributions. Therefore, Chapman explained, “We thought it best to showcase a new use for NFTs by creating digital collectibles that will be minted once per day, thereby guaranteeing a constant stream of revenue for charities within JustGiving’s network of partners.”
Teddy DAO wants to develop its community so that everyone can work together to advance social good. Teddy DAO is a decentralized autonomous organization (DAO) that has been registered as a 501(c)(3) organization.
“Over time, we would love to see it develop to the point where donors are selecting the Teddy DAO as a charity to donate to and building a treasury that can be voted on by the holders of the NFTs as to what social good initiatives to deploy to, whether that is to build wells in a place of need or a school, etc.,” said Chapman
However the Crypto-based charitable donations have gained popularity as a way to use blockchain-based currencies and NFTs for social effect, despite an ongoing bear market that has mostly slowed NFT sales.