Web 3.0 is an emerging trend that is taking the power of digital ownership and putting it into the hands of users. This is very different from the state of most internet and mobile technology today. Currently, Web 2.0 tech giants reap tremendous profits from their user-created networks. They then distribute these profits to a small subset of individuals—their employees and shareholders. Thus, one of the distinct differences between Web 3.0 and Web 2.0 is that most of the value Web 3.0 platforms generate from their networks is given back to the users of the networks.
We at Alpaca Finance have closely followed this Web 3.0 ethos by distributing the majority of the value generated within our platform to our users.
While banks can easily earn 1% on your savings deposits, they only return 0.1% back to depositors (i.e., banks give 10% of profits to the lender). In contrast, we return 91-96% of the gross revenues generated within our platform to our lenders, borrowers, and token holders.
We do this because we believe our community is the heart of our platform, and that improving the living conditions of more people, and giving back to the world is more important than hoarding individual wealth.
This is also why we pledged 5% of our Alpies sales revenue to charity, which amounted to over ~$300,000. We wanted to give back to society, particularly to neglected corners where we can have the most impact.
Our Selection Process
The charities we have chosen are mostly established animal sanctuaries, most of them housing alpacas
. We did not select wildlife animal sanctuaries because they tend to be better funded already. In reality, farming animals comprise the largest percentage of animals that are abandoned and in need of long-term homes. Furthermore, due to a transient commercial boom in alpaca wool 10 years ago, there are many alpacas that have been bred but are no longer commercially viable to support. These alpacas are neglected and ultimately put down, solely due to some farmers' focus on profits over animal welfare (i.e. human greed). In short, the existence of neglected domesticated animals is very much a human-created problem. That's why we believe this is a worthy cause for our donations.
Finally, a recent article by National Geographic highlighted that the Covid 19 pandemic slowed down animal adoption rates and created a shortage of staff and volunteers, further increasing euthanasia rates of perfectly healthy animals. Therefore, by donating to various animal sanctuaries, we help them increase their capacity to provide permanent homes to neglected animals. A list of charities we have donated to is provided below. We hope these donations will inspire other protocols to do something similar and strengthen the Web 3.0 ethos in our very special, shared crypto-community.