RootProject is creating a decentralized ecosystem that uses a token to provide full crowdsourced solutions, not just crowdfunding. This means that a nonprofit community project can be created, governed and funded by the crowd - at scale.
In our model, the rewards to both supporters and beneficiaries are maximized. While holders of ROOTS tokens are deeply incentivized to become active ecosystem participants, nonprofits enjoy zero fee paths to replicable and recurrent funding. Because RootProject directs a percentage of all funds raised to the purchase of ROOTS tokens on the open market, all campaign contributions go directly to the nonprofit organization.
A new crowdfunding model creates supply and demand for community projects. Project initiators don’t need to complete the project or know anything about cryptocurrencies. Donors get tax deductions. Socially visible projects enhance reputations.
A portion of a project’s crowdfunded proceeds go to token purchases, driving currency demand. The rest goes to material, one supervisor’s wages, and wages for those stuck in poverty to complete the project. The currency’s supply is hard capped, so each project reduces liquid token supply.
‘Pension’ Fund and Interest Alignment
In addition to hourly wages, paid in USD, cryptocurrency worth half of the day’s earnings is deposited into a medium-term pension fund-like entity - further reducing liquid token supply and aligning the interests of investors and society’s most vulnerable.