It has been a strong summer, filled with hard work and the creation of useful things. I would like to share what has been accomplished and what is currently under development.
Impact Staking
Impact Staking lies at the core of Launchnodes’ philosophy on what staking should be about. I’ve always viewed staking as a fixed pool of capital that generates a perpetual return, based on the growth of a network capturing an increasing share of global economic transactions. Utilising these perpetual returns as a long-term funding mechanism for social impact seems like a natural next step.
We have already begun using staking returns to fund neonatal software and tablets for use in refugee camps in partnership with Save the Children. We are also working with UNICEF, Giga, and the government of Rwanda to utilise staking returns to finance internet connectivity in schools.
GiveDirectly (GD)
GiveDirectly’s core approach involves providing direct cash transfers to people in need, often in impoverished areas. This method is innovative because it bypasses traditional aid models that may involve intermediaries or in-kind donations. Direct cash transfers empower recipients to make decisions based on their unique needs and circumstances.
We are inspired by GD’s direct cash transfer model, evidence-based practices, transparency, low overhead, local economic impact, flexibility, adaptability, and ongoing commitment to innovation in the field of humanitarian aid. We are extremely excited to collaborate with them on Impact Staking.
Donating Execution Layer Returns
Our partnership with GiveDirectly is predicated on the idea that solo stakers can direct their execution layer returns to a fee recipient address that belongs to GD, while choosing their own withdrawal address. This allows them to keep all their consensus layer returns and donate their block-proposing and MEV returns to GD.
This Impact Staking model expands on the idea that not only do donors get to keep their money and have it returned at the end of a 12- or 24-month period, but they also earn a return on the capital they are donating during that time. Simply put, this is an exciting innovation.
A Long Journey Ahead: Everyone Is Welcome, and These Are the First Steps
This is an exciting experiment, and we are committed to being transparent with the data. It will allow others to learn, adapt, and contribute to the growing field of impact staking.
