What if the donation value doesn’t go up or drops?
Imagine asking farmers to donate pumpkin seeds, which they plant in their farms with their crop. Over time they grow into big pumpkins, already allocated out as owned by the recipient of the donation. You can also imagine how much easier it may be for a farmer to give away 50 seeds than 50 huge pumpkins. The growth of the crop overall has resulted in the growth of the donated pumpkins. But maybe some crops don’t grow, so the seeds never get to be pumpkins, or they do but then a storm destroys them before they’re harvested.
We are aiming to get seeds from the best new farmers to maximise potential for growth, and harvest in stages to mitigate risk. We’re also aiming to get as many donations as we can of this type. If some don’t end up growing, which is very possible, no big deal, it’s all part of the environment we’re working in.
We watch the market conditions overall and for donated tokens, set price alerts and news alerts. With our technical analysis and market knowledge, we believe we can maximise token value. Since tokens will be sold at pre-set price targets, we reduce the risk of holding too long or not long enough and missing peak value.
A good thing about having Impelr aiming to maximise potential donations, rather than putting the responsibility on employees within an NFP, is that if it was on an internal resource the accountability pressure would be quite intense, for us, we’re bringing new funding to the table so it’s not as big a deal to us if some don’t work out.
If an NFP wants to take this on though, we will help set them up and let them go for it.
So Impelr is not getting a cut or being paid?
If donations scale to the point that we have operational expenses beyond very small current costs, then we will consider grants, donations to Impelr, or negotiate a fee structure with NFP partners per donation. But we are volunteering our time outside of normal jobs to grow Impelr, and we can always bring on more volunteers, we’re keeping it lean using existing technologies, and operational costs are extremely minimal. Transaction fees on exchanges are baked into transactions by the exchange, usually 1-2%. We love cryptocurrencies and want to see this technology have positive impacts and benefit those who need help.
What about scam projects, hackers and foul play?
Impelr vets all potential donors to make sure no scams or bad projects will get a free ride, we recognise the reputation risks and work to mitigate them as best as possible.
We advise best practice methods of storing donated tokens, either on top tier exchanges with insurance against hacks, otherwise we advise to hold in cold storage wallets offline in secure locations. The digital wallets the tokens are held in can be controlled with a multi-party signature key, meaning NFP partners can have multiple sign off internally on tokens being moved and sold.
All donation transactions are recorded on publicly viewable blockchains, so there’s no way any tokens could go astray without it being easily spotted, we’re not worried about any foul play by anybody, and can’t imagine anyone would want to steal from charity anyway! But, all digital security precautions are taken regardless.