giftcoin - crypto for charity and cause a good.

March 09, 2018

giftcoin - crypto for charity and cause a good.

Giftcoin is a groundbreaking new system
designed to revolutionize charitable giving. With
confidence in the charitable sector being seriously
compromised, never has cultivating trust with
donors been more important.

Vision

Our vision is to create a world in which every time you give
money to charity and good causes, you have total trust that
your funds are going exactly where you want them to. By
giving absolute trust and confidence, we believe donors will
choose to give more money to the causes they care about.

At a time in history of seemingly endless natural disasters, the
refugee crises in the Middle East, and a greater divide between
rich and poor than ever before, the need has never been
greater for such a platform.

For donors

We give them absolute confidence that their funds are being
used for the purpose they donated.

For good causes

We offer the chance to build trust and confidence via greater
transparency, bringing them more money to increase their impact.

Giftcoin is more than just another alt cryptocurrency. Giftcoin
has the potential to radically transform the general public’s
attitude not only to the process of giving, but towards the
value of cryptocurrencies as a whole. We believe that Giftcoin
is the crossover application of blockchain technology the world has been waiting for.

A revolution in
charitable giving

Giftcoin is about creating transparency and trust
in the giving process. Right now, giving money to
charity is a one-directional experience. You give
money, and you hope it goes where you intended it.
When you give with Giftcoin, you can have absolute
confidence that your money is going exactly where
you intended.

How charitable is the world?

Charitable donations are big business and we believe they
could be bigger. Global total charitable donations are
estimated to be in excess of $500 billion a year. In 2015 the US
gave $373 billion (1), Australia AU$134 billion (2) and the UK £10
billion (3). Not-for-profits in the US have an annual income
exceeding $2 trillion.

And, charitable giving is not just for the rich. Although high
net worth donors in the US gave an average of $25,509 to
charity in 2016, general population households still gave $2,520
(4). Charities also hold vast amounts in cash reserves, in 2015
the Salvation Army was holding $2.9 billion.

This is all well and good. But, we believe that with greater
transparency, the amount of money donated to charities
globally could increase dramatically. After all, when we know
exactly what our funds are doing, it only makes sense that we
would want to give more.

How do charities currently receive money?

Charities currently have limited options to receive funds. The
majority of donations from fundraising campaigns are received
using services such as Giving.com and Virgin Money. However,
fees are high. Giving charges a 5% fee and Virgin Money a 2% fee for processing funds, and this is before credit card fees of
around 1.5%.

The only way that individuals can currently donate using
cryptocurrency is by converting to Bitcoin and donating using
a service such as Fidelity Charitable. This is inefficient and not
easily scalable. Furthermore, services such as this do nothing
to leverage the power of blockchain technology; and change
attitudes to the experience of giving.

Feeless giving

Traditional giving platforms are expensive because they are
inefficient. The power of the blockchain means that donations
in Giftcoin, in addition to the revolution in the giving process
that is offered, are also feeless. That means; that not only do
you have confidence that every cent you give is going to the
cause which you donated it to, but you are not wasting any
fees in the process of giving.

A revolution in building trust with donors

Blockchain technology presents a revolution in the way that
charities build trust and engagement with donors. By being
able to track the impact of donations, donors are given total
confidence that their funds are being used for the cause
donated. Furthermore, each stage of the tracking process
give charities a powerful opportunity to drive engagement by
communicating the value of their work.

These communications
will foster a deeper relationship with the donor, whilst also
providing social media assets the donor can share with their
network, putting the charity in front of further future donors.

How Giftcoin works

The long-term vision of Giftcoin is end-to-end giving. That means, that
using a distributed ledger and blockchains you will be able to track the
path of the funds you donate to a charity or good cause right up to the

point they are spent.

By using a cryptographically secure and tamper-
proof system which has full public accountability you
have utter confidence in the system you are using.

Furthermore, by utilising a smart contract in the
token, it is possible to release funds in stages only
when projects reach key milestones. This means that
if a project falters or fails, the funds not yet released
can be returned to you as the donor to be donated to
a new project.

End-to-end giving

End-to-end giving is a revolution in the charitable
giving process that means you can track the path
of your donation right up until the point it is spent.
Here is how a distributed ledger and the blockchain
makes it possible:

Donation is
made in Giftcoin

A transaction is represented
using blockchain technology

Recipient receives
restricted funds in Giftcoin

Record of purchases is
transmitted back through the
blockchain showing exactly how
funds are spent

A block is then added to the
chain providing an indelible
and transparent record of the
transaction

Uses donation to pay for
agreed goods and services

The power of smart contracts

End-to-end giving is our long-term vision, and we recognise this will only be fully possible when those at
the end of the value chain (such as workers on the ground, or suppliers providing resources) can be paid in
Giftcoin. Although this is technically possible now, it requires greater adoption of cryptocurrencies which is
still several years away.

Therefore, as a stepping stone towards the potential of end-to-end giving, we will begin by offering a system
where projects are broken into milestones and funds are only released when projects reach these milestones.

This means that we can deliver an initial, working version of the system that delivers some core value and
utilises the power of smart contracts as a stepping stone to our eventual vision.

Technical specifications
of Giftcoin

The Giftcoin ledger will be publicly readable to
encourage transparency and to provide a valuable
resource for researchers, foundations, NGOs,
governments and individuals to see precisely how
the money is being used. We also believe that a
large body of data showing the flow of funds will
enable better policy-making and better use of charitable spend.

We would like to avoid Proof of Work
algorithms as much as possible

Some of the most important projects that Giftcoin will fund are
based around the decarbonisation of the developing world.

Proof of Work algorithms are notorious for consuming vast
amounts of energy and the problem is only likely to get worse.

We feel that heavy use of PoW verification is not aligned with the Giftcoin mission.

The token offering

The first Giftcoin token offering is taking
place in March 2018 with the aim of raising
between $2.5 million and $10 million.

These funds will be used to develop an
MVP and run initial tests of the platform
with selected charitable partners. This
first token offering will be limited to
sophisticated and high net-worth investors.

A second token offering will be delivered
in October 2018 to support a global role
out of Giftcoin and will be open to all the
general public.

Token Offering 1 - 20th March 2018

1 billion tokens of Giftcoin will be minted. The hard
cap for Token Offering 1 is to sell 10% of the tokens
(100 million tokens) at a price of $0.10 a token. If a
minimum raise of $2.5 million is not achieved all
funds will be returned to participants.
An incentive schedule will be offered to support
Token Offering 1 with the following discounts:

• 50% in the pre-sale
• 25% first 24 hours
• 15% first week
• 5% second week
• 10% bonus are available for advanced

whitelisting for the public sale.
The token on sale at ICO 1 will be a placeholder token
that will be exchanged for Giftcoin. This exchange will
need to be done before the token can be sold on an
exchange, which we anticipate being possible very
soon after ICO 2 in October 2018.

Token allocation

• Token Offering 1: 10%
• Token Offering 2: 35%
• Giftcoin Foundation reserves: 25%
• Founders and team: 15%
• Undefined: 15%
• Undefined tokens will be retained for
distribution for community initiatives, business
development, academic research, education and market expansion.

Founder coins will have a one year lock-in and vest
for a further five years allowing founders to sell no
more than 20% of their allocation each year.

Certify as a sophisticated investor or
high net-worth individual
To participate in Token Offering 1 you need to self-
certify as a sophisticated investor as well as pass KYC
(Know Your Customer) and Anti Money Laundering
(AML) checks. If you do not meet these criteria
you will be unable to participate at this time. For
investments greater than $10k additional checks may be carried out.