Polkadot (DOT)-based charity project Teddy DAO wants to attract more traditional donors to its cause by promoting Web3 education.
So far, the initiative has garnered about $14,000 in contributions to supporting charitable causes, including those centered on children’s welfare, anti-human trafficking efforts, cancer research, and others.
Additionally, the project is set to distribute 190 physical Teddy Bears to underprivileged children this year in alignment with its commitment to donate one Teddy DAO NFT for each minted.
Teddy DAO is a perpetual NFT collection that donates its sale proceeds to charity. Donors to the project can enjoy tax benefits because the Teddy DAO Foundation holds official charitable status with the U.S. Internal Revenue Service (IRS).
Attracting traditional donors
Despite making early social impacts, the project has yet to penetrate the traditional donor market effectively. This may be partly due to the emergent nature of web3 technology, which is still not broadly understood by most donors.
While around 67% of U.S. homes give up to 3% of their income to a charity, a 2022 Harvard Business Review poll showed that nearly 70% of more than 50,000 claimed not to know what web3 is. This poll shows that many people do not know they can use the web3 space to support humanitarian causes.
Teddy DAO looks to overcome this challenge by facilitating a Web3 education program for this class, adding that its cause would be greatly supported when JustGiving begins rolling out the project to the over 450,000 charities within its network.
David Chapman, founder of Teddy DAO, told Crypto that the project would launch an educational X Space series tagged “Teddy Tuesdays” to educate traditional donors about Web3 and the project.
“We have a chief aim to educate traditional charity donors and let Teddy DAO be a gateway into the world of Web3,” Chapman added.
5% of NFT royalties to treasury
Teddy DAO disclosed that a 5% royalty structure will be implemented upon creating a secondary market for its NFTs. The royalty would be collected in the project’s treasury, and members of its DAO could vote quarterly on how to distribute funds to charities in the foundation’s treasury.
Meanwhile, Teddy DAO reaffirmed its dedication to promoting energy efficiency within its charitable endeavors. The platform emphasized its selection of Polkadot due to the blockchain’s acknowledged minimal carbon footprint.
