[PIP-8] Charity Vaults & Philanthropy Optimization

VaultCraft Improvement Proposals VaultCraft Improvement Proposals [VIP]
,
1

Summary

This proposal aims to optimize Popcorn’s methods of donating to nonprofits and social impact organizations beyond a portion of protocol transaction fees by implementing the following functionality on the app:

  • Donate a percentage of redeemable tokens i.e. 3X and Butter
  • Donate staking rewards/claimable tokens as stated in PIP-7
  • Charity Vault version of all yield-generating asset strategies that donate yield in its entirety

The above donations and yield in aggregate from Charity Vaults will be sent to an on-chain Charity Fund controlled by a PopcornDAO multi-sig to be used to donate to nonprofits and charitable organizations determined by PopcornDAO on snapshot until on-chain beneficiary and grant governance is complete.

Desired outcomes:

  • Enable Popcorn users with more options to give back to charitable organizations
  • Create more positive global impact by allowing users to donate beyond just protocol fees
  • Create more revenue streams for PopcornDAO to be used for strategic growth and development

Motivation

To honor the social contract Popcorn has with its community to create positive global impact, there is no reason we should not optimize the app with more donation functionality. Streaming, performance, and management fees can also be applied to generate revenue that can be used for strategic growth and development purposes.

Strategy/Approach

  • Implement donate functionality when redeeming tokens
  • Implement functionality to donate a percentage of staking rewards and claimable tokens as stated in [PIP-7]
  • Launch a Charity Vault version for each yield-generating asset strategy. The goal is to offer two versions of yield-generating products, one where users earn yield on their crypto for themselves, and the other where yield is donated to PopcornDAO-determined charitable organizations
  • Administer a streaming, performance, or management fee that will be redirected to PopcornDAO to be used for strategic growth and development

Summary

This proposal draws inspiration from a conversation I had with an Ivy League endowment where we discussed how Popcorn could expand on its DeFi offering by creating yield-generating products that donate yield directly to charity. This would be an easy lift given we would use the same infrastructure but point the fire hose to nonprofits and social impact organizations.

Vote on [PIP-8]
  • Approve
  • Disapprove

0 voters

2

I’m not sure this suggestion goes here, but this proposal sparked this idea. Does Popcorn have a token burn strategy? What if, anytime a token donation was redeemed / converted to fiat, some of the POP involved was burned?

I don’t know much about token burn mechanics or economics, so I’m sure that would require quite a bit of research.

4 Likes
3

What if an equivalent amount of donated POP was burned everytime PopcornDAO donates to nonprofits, aligning doing good with a profit motive to create a win/win situation?

5 Likes
4

That’s brilliant! Incentivizing profit through impact is venerable and what brings staying power to the Popcorn protocol.

1 Like
5

That sounds fantastic as an initial idea. I’m concerned that it might lead to too much burn too fast. It would make sense to me that the burn could occur when a charitable donation occurs, however. My initial research has led to seeing some sophisticated mechanisms for burn. MakerDAO had a blog outlining their burn / buyback program from 2019, that could serve as input.

To keep the scope of this proposal in tact, I suggest leaving burn out of it. I will introduce a Request for Comment on token burn more specifically.

2 Likes
6

We’ve only donated in the BAYC campaign, and that was roughly 20K POP.

I don’t think we would burn too fast and the way to word the proposal to put in a fail safe, or perhaps require another proposal to cancel the burn.

1 Like