Today I am sharing with you two more important examples of Decentralized Fundraising in the series discussion of the previous post and the discussion of this topic ends here in the seventh episode of this post.
9. Yield Farming and Liquidity Mining:
Uniswap is well known to all of us. It is a decentralized exchange (DEX). Mainly it incentivized liquidity provision through yield farming. Users who provided liquidity to Uniswap’s pools received UNI tokens as rewards. This system of decentralized fundraising encourages users to contribute liquidity. Uniswap’s success has popularized yield farming and liquidity mining in the DeFi arena. Uniswap is a platform that enables instant swaps and is one of the most important networks for token conversion, widely used worldwide. Uniswap has brought a radical change in the crypto world. But security is needed to launch this kind of service and that liquidity is not always possible for any country or small ethnic group to support.
Since the decentralized funding system is in place, people from all over the world can participate in the lottery. And through this, as they are helping to keep this Uniswap platform running, they are also getting rewards from the mining pool. In that case, there are no domestic boundaries and no fixed currency rules. Therefore, an opportunity has been created for any people from any part of any country to participate in this liquidity service, which is one of the most important examples of Decentralized Fundraising.
10. Decentralized Grants:
You may be familiar with the Binance Charity Foundation. This is a blockchain-based technology to raise funds. This is trustworthy and transparent in charitable donations. Donors can contribute cryptocurrency as well. BCF has supported various humanitarian projects like disaster relief and education initiatives. It demonstrates how decentralized platforms can bring greater accountability and efficiency to charitable fundraising.
This would never have been possible in the traditional system because, in the traditional system, it was impossible to bring people from all over the world together in this place and build trust. Here, due to the use of decentralized blockchain technology and the opportunity to make payments through cryptocurrency, this type of charity foundation has created an opportunity to participate in society development in disaster management and other distress services through the participation of all.
~ Regards,
VEIGO (Community Mod)
We're die-hard fan of Tron Blockchain
