AidCoin: the GAS of AIDChain
Now that we’ve introduced a new stable coin to AIDChain, we keep receiving questions in our telegram group on the current AidCoin use cases. That’s why we decided to clear it up and tell you about the 2 ways of using AID now and in the future: as a fee, at least 50% of which we will burn in order to decrease the token supply, or as a staking token.
1) AidCoin Staking models for Charities
- Using smart contracts templates
With smart contracts, charities will be able to fundraise for certain projects and reassure donors that their donations will be spent exactly as stated since the money will be managed by the smart contract itself. This will leave no opportunity for cheating and take the charities’ transparency to the next level, boosting the donors’ loyalty. To access this feature, charities will have to stake an amount of AID for a certain period of time.
- Receiving monthly donations in excess of a certain quota
At some point, we will introduce a limit for donations that any charity can receive monthly. However, if received donations exceed this quota, the charity will have to stake some AID to gain access to them.
- Accessing direct communication channels with donors
Charities will have to stake some AID if they want to communicate with donors directly, be it through AIDChain or through a donors mailing list.
2) AidCoin Fees
a. Fees for charities:
- Fundraising with AIDPay
Just like other fundraising platforms, at some point, we will start taking a small percentage from the transactions processed through AIDPay: this will include both the AIDPay widgets embedded into third parties’ websites & applications and the AIDPay technology integrated into the AIDChain itself. However, our percentage will not surpass 1%, whereas the average percentage that fiat processing systems such as Paypal and Stripe take equals to 3%.
- Fundraising with Smart Contracts
We will also take a minor percentage from the donations raised through our smart contract templates. But again, this percentage will be smaller than the industry’s average of 5%, which GofundMe, Justgiving and other fundraising platforms withtake.
b. Fees for corporates:
Other companies and blockchain projects send us requests to white-label our technology in order to launch their own corporate social responsibility programs or other charitable activities with no efforts for their developers. In these cases, we charge them in AID thus driving the demand for AID even outside the crypto circles.
c. CharityStars Fees
When proceeds from the charitable campaigns of our founding company CharityStars go to charities in crypto, we use at least 50% of CharityStars fees (10–20% of the campaign's proceeds) to buy AID on exchanges and further burn it.
We also keep searching for ways to incentivize the use of AID in the CharityStars ecosystem. In the future, users who stake AID might access new auctions earlier than others, get discounts from the final bids, etc. but at the moment the CharityStars’ involvement in the AID token economy is only confined to the aforementioned fees.
When will this happen?
At the current stage, our mission is to onboard as many charities and donors as possible and let them freely use all the features that AIDchain has in store rather than to chase short-term profits. That’s why most of the measures described in this post won’t come to force right now. Likewise, the exact staking requirements & fees amounts will also be decided later when we have enough users to analyze their fundraising and donating patterns and set the best conditions for them.
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Can’t find your favourite charity on AIDChain?
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