Bible Pay

Governance => Archived Proposals => Topic started by: Rob Andrews on January 14, 2020, 05:52:10 PM

Title: BiblePay as a Global Charity Agent
Post by: Rob Andrews on January 14, 2020, 05:52:10 PM
This is an idea for a real world use-case for BiblePay.  Continuing the discussion on 'dimensions of a crypto' we have established that ( (if given 3 dimensions: Mining,  Innovation, real-world-use-cases), we score high on Mining (PODC), high on Innovation (Dashpay etc), and low on real-world use cases.

This idea involves either being a charity broker, or a charity agent.  Similar to the way a transistor works, we would 'enable' a charitable transaction - also by providing a reward back to the donor.  This would be the reason a donor would choose BBP over going directly to the charity.

Why would BBP be favorable?  We could constantly aggregate charities providing the 'best deal' in a web resource constantly updated.  For instance, lets say Korean orphans are in desperate need, and the orphanage offers a 30% discount.  Or, if we have matching funds available.  And, with corporate matches, and partnerships we may create a partnership discount.  Also we have platform fees charged by the big leagues (9%) plus transaction fees (3%), and all of this adds up to a huge amount of overhead.  The big leagues pay serious money to vet charities.  We can leverage this by downloading charity research for vetted orgs, and keep this in the folder for the org, and only partner with vetted orgs.  This will also save BBP all of the expenses (in vetting) - if we require pre-vetted orgs vetted by third parties with recent reports.

Looking at Charity, this is a huge untapped market in global finance.  We are obviously not tapped in any way, as the American charity donations are $390 billion annually, and global cause is over a trillion $.    Therefore this is a real world endeavor, so lets set our sights higher.

Let us create use cases for this feature.

In the current scenario (POOM), we match a miner with a charity.  Currently, we spend 10% of our blockchain emissions on charity.  But, we don't attempt to negotiate any discount with our charities, we spend the retail amount ($40 per child).  And this is technically not what I'm suggesting (I do not want to slim down the profit), I simply want to create a competitive market.  What we can do is ask each new charity partner as they are vetted, to offer us a  5-10% networking fee to be approved for the account - this would end up resulting in pooled rewards for the donor  (see below) - let us call this "Discount appeal A".

Next, there are many, many examples in the corporate world of companies that match employee donations.  Sometimes 2, 3, 4 or 5* the match is available.  We need to reach out for a pilot company, and design a flow that would allow an employee to sponsor a child, and facilitate the match. 

Next, there are real world examples - constant examples of 'matched funds' available at companies such as globalgiving.  I myself have sponsored over 10 kids last year with a match (that helped 20 kids), and, once through CARE, utilized the match of a NYC donor to double my CARE contribution.  We need to locate and partner with the match.  We can use the Match funds to offer a discount on the 'available charity for donation list' page - and this will be very enticing when a user is deciding to give through us (to see a 50% match, or 50% discount on the list).

Next, there is a platform fee of roughly 8%-9% charged by companies like GlobalGiving (and also a 3% network processing fee), for every donation!  This is huge.  ( .  This means $1000 given through globalgiving actually is reduced by 12% ($120) for a net receipt to the charity of 880$!  This point is one of the biggest points here.  This means, we can appeal directly to a vetted charity, receive a network-fee discount in our negotiation of new partnership (from point A above) - to broker the transaction.

This 5-10% total discount would entice the user to give through us (instead of going through globalgiving).  Because when we list each row, we will list the BBP reward available.  Then, we give the donor a refund in BBP, at the applicable % negotiated (creating a competetitive environment for new givers).
This gives the user 3 reasons to choose us :  Donating to causes with matches, donating with programs with discounts, bbp-reward back.

Real World Example:

We partner with Cameroon-One, Compassion, and Korean-Children Institute.  Cameroon-One negotiates a 5% discount with us, Compassion 5%, and Korean 10%.  This means right off the bat, Cameroon-One drops to $38 per child (because they are looking for partnershps and quantity), while if you go directly through cameroon, you pay $40. 

Next, we locate a charitable match partner (IE the same one globalgiving uses in NY).  They usually offer a match to the 501c3 for proof of a donation.  Then we apply this to our advertising page:

Cameroon-one     $38        With Match $19.00     
Compassion           $36         With Match $18.00

Note that what would happen is an inbound donor would choose an amount of the donation, say $380, and pick Cameroon-One.
We would automatically apply the match, and donate $760 to cameroon-one.  However, cameroon-one would pay a network fee of 5% (or $38) and this would go back to the donor in the form of BBP (not fiat).  Additionally, we could also pay a percentage of our charity budget for this transaction as an additional reward (of between 1-10% see chart based on price), however this additional reward would be capped at no more than 1% per donation of our total budget (IE if we have $2000 available, only a max of $20 could be paid in this additional bonus).  So lets say the BBP price is still on the chart level where 2% is being paid for rewards, then $15.60 additional in BBP would be added.   So this donor would receive $15.60+$39=$54.60 reward in the form of BBP (our coin would not keep the profit).  A random sanctuary would facilitate the transaction (IE document it and enter it in and execute it).  This would also be tax deductible, as the payments would go directly from the donor to the charity, and BBP would extract proof-of-transaction, and save the data so we can give real world credit for this on our web site etc.

Proposed Price breaks table :
BBP Price                   Charitable Expense Amount (And Governance emission amount)
.01+                             10% to charity (100% from superblock)
.005                              7% to charity (70% of superblock)
.001                             5% to charity (50% of superblock)
.0005                           2.5% charity (25% of superblock)
.0001                           1% to charity (10% of our superblock is emitted)

This table can be refined later, but it shows that we start to limit our payroll, IT expenses, superblock payments, and charity payments down to the governed table emission level while our price is low.  So only 2.5% goes to charity while our price is .0005.  However, we give the full 10% after our price exceeds .01.

So, as a bridge for POOM if we did this, we would sign up partners well in advance, negotiate deals, test in testnet, then we would want to convert POOM back over to donor->charity individual transactions; IE children would be removed from POOM, but left in the hands of the current sponsors for individual transitioning.  The hope would be during the go live we would have at least one match available to make this transition easier (as then the price would be lower to continue those children).

Note that I feel that if we did all this we would also need a 'legacy' page for classic type orphan charity, like we had in the beginning.  For example suppose we have half of our budget available.  We could by default, allow a user to sponsor an ongoing child for N months with no hassle.  So we would have both transaction lists of agent assisted transactions and lists of sponsored orphans sourced from our overflow funds.

Im thinking we would break out the fiat / crypto into two distinct services and offer both.
Fiat transactions would work like stated above.

But we should have a "donate" process for Crypto also.
We could pilot that with our orgs that already accept crypto (as it would get very tricky to make a crypto gateway available and force a sanctuary to liquidate funds, or lose their santuary if they did not perform).

Let me show an example:

Lets assume out of 10 charities, 5 will accept BBP+BTC.  We mark these 5 as crypto enabled.
We would want the transaction to be sent from the donor directly to the charity in crypto.
Then the charity would as usual send the network fee later back to us to disperse to our user.

What I'm wondering is, will this be used by the world if we make a brand new dedicated web site for this?

I'm a little more optimistic about this than some of our previous ideas.

Additionally, this entire idea seems to completely remove sell pressure from us as a coin.
All donor payments go directly to our charities in gross dollars, they receive a fat discount back for doing it.

The donations are tax deductible because they send To 501c3 enable charities.

One interesting thing that might happen in the case of a rich donor who has $1 billion to spend, lets say Trump decides to give $1 million to Cameroon-One.
This would cause Cameroon-One to send $50,000 in BBP back to Trump.  This is interesting because they would need to buy the bbp to send it.  Our governance emission would be $20 for this tx. 

Edit:  Another element I want to add, is ensuring our emission schedule completely matches our
target schedule here:
So what this means is I propose we tweak our internal deflation rate target to exactly match the Dec 2020
 target emission amount.  This is not a lot, or a major change to the deflation % level, but we have emitted about 100 million extra coins as of the current date and I feel we should shore this up for our Q3 2020 mandatory - we would end up increasing the deflation from 20.04% to something like 21% for example (after running the calculation).

And finally on an unrelated note, I will need to add a different thread for this subject:  Slightly modifying the POBH internal miner.  Things are pretty good right now.  But I believe God wants it perfect (the issue I have with this is "fair weights and balances").  I dont like how we ended up with a 75% mining speed for the solo miners in the core wallet and an increase in speed in the external miner.  So, I will open a separate thread to discuss this.  I mention it because it could be hampering our heavenly backing.  So that makes it important...

And finally one more point I forgot to mention: Globalgiving.  According to their financials they are bringing in $400 million per year of donations (and charging 8% fees on those, to handle those).  What we would do is analyze the top 100 charities, create folders and vet them, and then go to make deals with them, for discounts (this is the amount in BBP the reward will be for).  Then we expose them on a new web site ranked by the deal.  Then we make Donate buttons for our donors.  Then we add the sanc facilitation process.  And the refund process.  And the matching donor partnership and deal and flow.  And in the end the hopes would be browsers from the real world would flow over to us because they stand to gain a rebate of 6% if they give through BBP, and they get to accumulate BBP (crypto exposure).