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Blockchain Australia

Little Phil – ending the exploitation of charitable giving

By June 22, 2018 No Comments

In 2016, an estimated USD 500 Billion was donated to charities from individuals and corporations across the globe, but while this figure is increasing, the number of people donating is actually decreasing. Charities have seen a decline of approximately 75% in donor engagement from younger generations, and are therefore relying heavily on older demographics for donations.

As the competition for funds is fierce, charities often resort to hiring specialised third-party intermediaries to raise funds on their behalf. Current fundraising methods are failing to find traction with younger generations because of pushy outdated sales tactics, trust issues, and a lack of transparency. If the current state of the industry continues, there will be a drastic decline in charitable giving over the next 10 to 20 years.

Charities wanting to increase their market share of donations using a marketing intermediary have a difficult time due to the high upfront costs which most smaller charities don’t have access to. According to an Australian Competition and Consumer Commission report charities can pay an upfront commission of 800% to 1700% of the monthly pledge obtained. One of the main obstacles to giving is not knowing how much of a donation makes it through to impact the actual cause. Charities do not share client lists, so they also have the issue of not being able to assess whether their recipients have genuine needs or are exploiting the system by asking for the same assistance from different charities.

Little Phil uses blockchain tech to overcome these obstacles by providing Proof of Need and Proof of Impact along with a focus on positive experiences – say goodbye to guilt and shame based marketing tactics.

Proof of Need: Biometric data creates Unique Digital Identities (UDID) that are cryptographically secured. These are used to confirm receipt of donated goods and cross reference receiver history to establish authenticity and improve decision making for charities.

Proof of Impact: Donors can see how their funds were used thanks to the immutable public ledger. Further evidence of their impact is demonstrated by:

  • UDID assurances that funds aren’t going to waste and that any donated goods have been received by the appropriate person;
  • Direct appreciation shown via feedback mechanisms from the receiver to the giver; and
  • Social sharing impact statistics.

Aside from these two central features for givers, charities will also have access to donations at a much lower cost than they currently incur, as little Phil charges only 6% per transaction at the time it is made. This levels the playing field for smaller charities to build awareness for their cause without having to spend large amounts up front.

Little Phil primarily appeals to Millennials using a smartphone app with a user experience designed around the positive psychology theory of “Flourishing”.

The token

The platform creates a positive giving experience by allowing givers to track their donation all the way to the receiver, as well as facilitating an emotional connection to them via real-time updates and receiver feedback mechanisms. Users are also given a portion of their donation back to them in Little Phil Coins (LPC) as reward tokens, which they can use for future giving. These tokens also act as a pool for the emergency relief fund, which is used as a means of providing a rapid funding response to catastrophic emergencies as voted on by staking nodes.

Givers will be able to find a cause they care about and either purchase needed items (e.g. school books), give money directly, or pitch in for something bigger (e.g. a motorised wheelchair).

The platform is designed to require the purchase of LPC from exchanges meaning demand for tokens will increase in proportion to the number of donations going through the platform. Unlike other platforms, little Phil provides protection against market volatility for receivers by using “Just in Time” smart contracts, whereby LPC is only purchased from exchanges at the time it needs to be sent, not at the time of donation.

Token Economics

The LPC Token utility: LPC is an ERC-20 standard token that can be stored and transferred to or from any ERC-20 compatible wallet, but can be staked in the little Phil platform.

LPC tokens are used for:

  • Rapid, low-cost transfer directly to the wallet of the receiver, charity or supplier wallet;
  • Traceability of transactions and costs;
  • Conversion to a preferred digital currency with an atomic swap;
  • Just in Time (JIT) smart contracts to protect from market volatility;
  • Reward tokens;
  • An emergency relief fund;
  • Staking and voting rights;
  • UDID creation to protect against receiver duplication; and
  • Platform fees.

Token Sale Details

Sale details Pre-ICO (40% bonus LPC) 10m 180m

ICO Tier 1 (30% bonus LPC) 5m 85m

ICO Tier 2 (20% bonus LPC) 3.5m 65m

ICO Tier 3 (10% bonus LPC) 2m 45m

ICO Tier 4 (No bonus LPC) 1m 25m

Sale begins Pre-sale – Est. Mid to late August

Main ICO – TBA

Token type ERC-20 Ethereum Based Token, Ticker ‘LPC’
Token Sale Caps Soft Cap: USD 2.1m Est. Hard Cap: USD 40m
ICO Token Price USD 0.10 / LPC with variable bonus rates
Total token supply 1,000,000,000
Token Sale Structure
Use of proceeds
  • 40% Product Development
  • 30% Business Development & Strategic Partnerships
  • 20% Marketing and Communications
  • 10% Reserve Funds
Know Your Customer checks? Yes, full KYC/AML implemented
Restricted countries Afghanistan, Bosnia and Herzegovina, Central African Republic, Cuba, Democratic Republic of the Congo, Democratic People’s Republic of Korea, Eritrea, Ethiopia, Guinea-Bissau, Iran, Iraq, Libya, Lebanon, Somalia, South Sudan, Sudan, Syria, Uganda, Vanuatu, Yemen, United States (Accredited Investors Allowed)
Min/Max contribution Nil, except for US accredited investors: minimum of $10,000 worth of ETH
Contributions accepted in ETH

Summary

Little Phil isn’t simply helping charities accept cryptocurrencies as payments. The platform is utilising the full potential of blockchain technologies to set a new standard in giver expectations by providing users with the assurances they deserve, while also empowering charities with the tools they need to better achieve what they set out to do.

Little Phil is an Australian based company consisting of like-minded people who are passionate about philanthropy and innovation. The project has partnered with Griffith University, ranked in the top 3% of Universities worldwide, with many of the team and advisors being lecturers and alumni of Griffith. The team has the diverse range of expertise and backgrounds required to take the little Phil platform from their MVP to the most powerful giving platform to date.

Check out the explainer video, come chat with us live on telegram or visit littlephil.org for more information and to be kept up to date on the project and ICO.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Cryptocurrency Australia Media, or the author, may have holdings in the cryptocurrencies discussed.