A New DeFi project raises $1 million in donations to GiveWell in just two weeks.
MUNCH today announced that in just two weeks since launching, they have donated over $1 million to the GiveWell charity.
MUNCH is a decentralized finance (DeFi) project that applies a 10% transaction fee to buy or sell the MUNCH token. This transaction fee is then divided, with 5% redistributed to other holders of the token and 5% converted automatically to Ethereum (ETH) and donated to charity.
“We’ve been utterly blown away by the reaction from the community.” says Rodrigo Silva, CEO at MUNCH. “It proves that people want their financial systems and services to work for everyone.”
As part of the community-led aspect of the project, the community is now voting on how best to allocate the funds, from a selection of options provided by GiveWell.
- GiveWell’s Maximum Impact Fund
- Malaria Consortium’s seasonal malaria chemo-prevention program
- Against Malaria Foundation
- New incentives
Whichever specific cause is selected, the funds donated by MUNCH will provide GiveWell the opportunity to have a major impact on peoples’ lives by preventing potentially deadly diseases and improving people’s well-being.
“We’ve been surprised and delighted by the support from the community and team at MUNCH. These donations will accomplish a tremendous amount of good,” says Elie Hassenfeld, GiveWell CEO.
The MUNCH project will also allow the community to select the charity of their choice, which ultimately will be where the next round of donation funds will be allocated. The project is currently evaluating and running background checks on a short list of options that the community can choose from.
“If we continue to grow at this rate, we will be donating millions per month,” says Silva. “It’s shown us that things can be done differently, and that every individual can have an impact.”
MUNCH is a DeFI project that was started by Rodrigo Silva after he identified a critical flaw in other cryptocurrency projects with a donation model. Rather than collecting donations in the native token, MUNCH routes the percentage to be donated in another, more stable token (such as ETH). This means that when there is a major donation amount, it doesn’t destabilize the native token or let the donation lose value through slippage.
MUNCH enables investors to divert and distribute part of their investment to causes that need it. Because of the immutable nature of the blockchain, every transaction can be tracked and verified to ensure that it is received in full by the charity.
‘’I knew that the people investing in new DeFi projects would be willing to have a ‘bite’ taken by the fee. The token may fluctuate, but across every transaction, money is going to help people. By automating everything, we made giving back a standard part of the transaction.’’
Rodrigo is joined by a team of eight others based in Europe who bring a wealth of technological, business, and cryptocurrency experience to help manage and develop the project.