From AID to DAI: combining transparency with stability
After long months of communication with charities, we detected a stumbling block on the way of immediate wide-scale adoption of AIDChain among charities: the volatility of cryptocurrencies. Not only does it slow down the AIDChain adoption but also poses a challenge for the mainstream use of cryptocurrencies as such because it deteriorates their abilities to store value and act as a means of payment.
It is worth noting though, that far not all fiat currencies possess these qualities either and crypto is still ahead of the competition with its lower transaction costs, the absence of governmental control, immediate transfers 24/7, including cross-border, etc. — which is why we’ll always advocate it and promote it among charities.
And today we’re grad to announce that we found a way to eliminate this downside of crypto while retaining its merits for AIDChain users: by integrating DAI — a stable coin by MakerDAO — to the AIDChain platform. We’re more than sure that it’ll lead to a breakthrough in our negotiations not only with major international charities but also with smaller organizations who are especially discreet when storing their hard-fought funds.
Since we require all our charities to spend donations without converting to fiat in order to allow everyone to see how they’re using the funds, the charities often have to hold the donated crypto for a while before transferring it to their service providers or final beneficiaries. Therefore it’s crucial to ensure that the received donations don’t lose their value while they’re awaiting to be spent — which is exactly what we’re going to achieve by integrating DAI in our system.
From now on, the DAI token will be used as the main currency to store donations in, meaning that all donations accepted through AIDPay will get automatically converted into DAI and further used by charities to pay their suppliers, employees, beneficiaries, and other sorts of contractors.
Meanwhile, the demand for AID is by no means going to fall. It remains to be the token powering the AIDChain platform so all our charities and users will have to stake a certain amount of AID and/or pay fees in AID in order to access the platform’s most useful features. Therefore, since the introduction of DAI is eliminating the main factor that’s been deterring charities from jumping on board, we expect many more charities and donors to join in, thus driving the use of AID as a token needed to access the best features AIDChain has to offer.
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