UNICEF Is Testing DAO Prototype

UNICEF, the United Nations agency that helps children in need around the world, is working on testing different DAO concepts. They could be used to come up with solutions for more efficient management of the organization as well as digital solutions that many developing countries could benefit from. 

Any technological solution that helps better follow the money distribution would certainly be welcome at the organization, which deals with the donations all over the world. UNICEF blockchain lead Arun Maharajan said in an interview last week at Paris Blockchain Week: 

Adapting DAO concepts is an important step, and the organization, which already has a fund to accept crypto donations since 2019, has chosen the Polygon blockchain to develop its DAO ecosystem. UNICEF already has a dedicated blockchain lead, who will oversee the project.

The fact that such a widely known organization as UNICEF is open to crypto technologies shows that crypto and blockchain are no longer niche concepts that only a bunch of tech-savvy people are interested in. Sure, you could argue that crypto has already been in the mainstream since the big crypto boom of 2021, but we are now talking about the technology part and not the investment part.

Cryptocurrencies as a form of investment are now becoming mainstream, but blockchain and DAO technologies still lack any widespread adoption. In fact, many organizations who invest in crypto don’t pay too much attention to the technology behind the coins. They prefer thinking about the profit. 

UNICEF is a respectable international organization established in 1946, that has helped millions of children in need around the world, primarily in developing countries. If such a notable organization adapts a blockchain ecosystem, that will greatly help spreading the technology around the world. Crypto technologies and UNICEF are a natural match anyway, as like most other charitable organizations, UNICEF is happy to accept donations in any form they may come. 

The advantages of DAO for UNICEF

The aim of the project is to establish a DAO ecosystem that enables more efficient communication and ensures a more fair distribution of power. Both of these are crucial in managing such a huge and widespread non-profit organization, that has to adapt to the vision of many different contributors and keep things moving while being under the influence of many different players, each having their own best interests. 

In the focus of the development are so called DPGs, digital public goods. These are open source, mostly free to use software, algorithms, management standards etc., that can benefit ordinary people. DPGs can also help developing countries to build their digital infrastructure faster and more efficiently. 

The project is currently in an early stage, being tested as a layer 2 solution on the Polygon blockchain, focusing on easier and more direct interaction of different DPG stakeholders with each other as well as with users. Earlier, UNICEF has already tested an open-source voting tool, named Snapshot, that could help get locals more involved with government proposals. 

Digital tools like this could be essential in vast territories with underdeveloped infrastructure or overcrowded areas, where physical interaction on less important questions is just too complicated, but almost everyone already has a cheap smartphone in his pocket and access to the internet.

The future of DAO concept

Recent years have shown that apart from the technological potential, blockchain technology also has a social potential. It brings the changes offered by these concepts. 

Blockchain can provide easy but safe voting and feedback solutions that could help involve the general population more in even smaller political and economic decisions. Whether that will benefit society or not is a completely different thing that attracts a lot of different opinions. 

The point is, now at least the technology is there to have this possibility, should we want it. DAO solutions could also help in the management of big organizations, especially in the case of big international companies, where numerous parties are involved with conflicting and overlapping interests, such as UNICEF. And the fact that any data on the blockchain can be easily verified by anyone, anytime, makes blockchain a perfect technological solution to put behind such concepts.