WEB3 FOR ALL
Many Web3 companies aim to drive social change, but are not always aligning its growth strategy with a social impact framework for a better financial return and positive impact in the world. Currently, the most common ways for companies to make a social impact in Web3 are crypto/NFT donations or a part of its profit goes to a charitable cause. What many Web3 companies lack is implementing impact strategies to make its social mission go hand in hand with scaling or growing the business. This is the same for Web2 companies transitioning to Web3.
We often hear these buzzwords for Web3: decentralization, inclusion and transparency, in other words Web3 For All. Companies should reconsider of using “Web3 For All” if not everyone has easy access to your product / service or is not included in your ideal customers’ profile. So, how can Web3 companies walk the talk?
Let’s first evaluate how decentralization leads to social impact before we jump to the frameworks.
“The power and advantages of decentralization are becoming increasingly clear. We deserve a financial system where no one can be censored or excluded from full participation.” Silvio Micali, Founder, Algorand
There are about two billion unbanked (and underbanked) people around the world. They lack basic financial resources including bank accounts, loans, credit cards, insurance etc. The barrier to full economic participation cycle reinforces poverty and inequity. The current financial system is never meant for the poor, as they are meant to make profit and exist to create wealth through shareholders, the upper and middle class.
Cryptocurrency and blockchain allows the underbanked and unbanked population access to financial resources through decentralized finance (DeFi). One example is allowing this underserved population to send and receive money via blockchain technology without internet connectivity, a computer or a bank account. Another example is decentralized insurance protocols by using smart contracts to deliver automated insurance to the underserved population.
This would help the underserved population gain participation in the economy, save money from intermediaries’ fees, and access to tools to protect them in emergencies. If we can give these resources to the two billion living under poverty, we will eliminate poverty at a large scale.
Equity For All
More often than not, people who do the actual hard work at the bottom of a production cycle and or the most valuable work of the whole financial cycle and process get rewarded the least. Look at artists, farmers, miners and the list goes on. Yet again, cryptocurrency/NFT (Non Fungible Token) and blockchain allow people to take full ownership of their earnings and their economic value. In the world of Web3, it is only a matter of time before we start seeing decentralized organizations providing opportunities for individuals to bring their labor directly to the market without the need for an intermediary organization, or employer. This could be in the form of a DAO (decentralized autonomous organization), which offers opportunities for a sharing economy where workers get to keep the vast majority of their wealth with the exception of a small administrative fee to maintain the DAO. The end result will be a greater economic opportunity for workers, and less money going into the pockets of wealthy employers, executives, and shareholders.
What Is Next
Web3 is still in its infancy, and it may take a while before social impact frameworks are implemented at scale. It will take time for these ideas to catch on, but when they do, the end result will be a fairer, more equitable economy and world. This is the connection between social impact and Web3.
And now the question is, with the great emerging technology, how can we implement social impact frameworks to drive social change with a financial return? In our next blog, we will provide you with some steps of social impact frameworks that you could apply for your business in the world of Web3.
WemanConnect helps you link its company’s growth strategies with a social value. It doesn’t matter what stage you are at or what budget you have, provided that you want to drive social change alongside making a profit. Contact us for a free consultation and find out all the possibilities.