Bringing LocalCoin to SUI

LocalCoin is a non-profit local currency system built on the SUI platform. It empowers campaign owners to create custom tokens with spending restrictions. These tokens are backed one-to-one by a stablecoin, ensuring stability, and can be spent by recipients at authorized merchants within the local community. LocalCoin is designed to be fully decentralized, with governance controlled by voting through a Decentralized Autonomous Organization (DAO).

Challenges Addressed:

• Lack of Transparency: Donors often cannot see how their donations are used, leading to distrust and hesitation.
• Misuse of Funds: Cash assistance can be misappropriated, reducing the intended impact.
• Leakage of Funds: Unrestricted funds may leave the community, limiting their positive effect.
• Scaling Issues: Centralized solutions struggle to scale effectively.
• Privacy Concerns: Communities may be wary of being tracked when they participate.

Our Solutions:

• Closed Loop System: Ensures funds are spent only within the local community.
• Mobile dApp: Used by both merchants and participants for approved purchases.
• On-Chain Tracking: All transactions are recorded on the blockchain for full transparency.
• Spending Restrictions: Funds can only be accepted by approved merchants for specific items.
• Merchant Redemption: Merchants can redeem local currency for any stable coin that the system supports on demand.

Target Audience

LocalCoin is designed for:

• Standalone Philanthropic Organizations: Ensuring transparency and effective fund usage.
• NGOs in Developing Countries: Facilitating controlled and impactful fund disbursement.

Entities of LocalCoin

Campaign Creators:

Anyone can become a campaign creator by transferring a certain amount of USDC to the platform, creating a campaign, and minting an equivalent amount of LocalCoin tokens. They can approve participants and manage campaign details.

Recipients:

Users browse and join campaigns via the app, participate in the campaign, and provide proof of their involvement. Upon verification, they receive LocalCoin tokens, which can be spent with approved merchants.

Merchants:

Merchants provide goods or services in exchange for LocalCoin tokens. They can burn the tokens to receive an equivalent amount of stablecoin, ensuring the funds are used as intended.

Merchant Onboarding:

We are building a network of quality merchants, excluding those who sell products like cigarettes or alcohol. Only the super admin/app admin can add merchants to the network.

How LocalCoin Works

1. Campaign Creation: Campaign creators transfer USDC to the platform, creating campaigns and minting LocalCoin tokens.
2. Recipient Participation: Recipients join campaigns, participate, and earn LocalCoin tokens.
3. Merchant Transactions: Recipients spend tokens at approved merchants. Merchants then burn tokens to redeem stablecoin.

How SUI Makes LocalCoin Accessible

SUI is a Layer 1 protocol blockchain, ideal for onboarding web2 users due to its unique features:

zkLogin

This feature allows users to sign in with their existing web credentials (e.g., Google, Facebook). By using accounts they are already familiar with, it makes the transition to LocalCoin smooth and straightforward for both recipients and merchants, eliminating the need to create new wallets.

Sponsored Transactions

LocalCoin offers SUI-sponsored transactions that cover gas fees. This means users don’t have to worry about the additional cost typically associated with blockchain transactions, making it easier and more appealing for them to start using web3 services.

Closed Loop Token:

Ensures tokens are used as intended, with custom policies restricting usage to recipients, merchants, and campaign creators.

Future Plans for LocalCoin

• Multiple Token Types: Tailored for different regions or cities, depending on community needs.
• Off-Ramping and On-Ramping: Facilitating direct bank transfers for campaign creators and merchants, simplifying the financial flow.

Conclusion

LocalCoin is set to transform the way social good organizations manage and utilize funds. By ensuring transparency, preventing misuse, and enabling scalable, decentralized fund management, LocalCoin addresses critical challenges faced by philanthropic efforts worldwide. Our journey at the SUI Overflow Hackathon has been just the beginning. We look forward to further developing LocalCoin and making a meaningful impact on communities around the globe.

Get involved today!! Visit our website or explore our GitHub repository.

Join our community to stay updated and thank you for your support!