With the release of our second Litepaper, Angel Protocol takes another step toward creating a vibrant ecosystem for impact-driven communities. Throughout the Litepaper, we demonstrate how we can connect impact ecosystem stakeholders under a shared network to eliminate costly intermediaries, remove fund flow constraints, and enable inclusive access to opportunity. We review:
- Charity Marketplace; early success and feedback from onboarding charities, plus our roadmap
- Angel Alliance; embedding impact in smart contract DNA
- Angel Growth Funds; programmable defi funds with DAO tooling, that always generate impact
- Reputation; preliminary framework for participating and building provenance in our ecosystem
- Tokenomics upgrades; lock your Charity Shares to boost Charity Curation Score and a have a claim on protocol wide revenue sharing
This article provides a highly condensed overview with helpful graphics pulled from the Litepaper.
Charities at the core
Charities are financially vulnerable and do not have access to the wealth management tools and donation audiences they need to be sustainable. Our platform presents an alternative option. Over 160 charities, large and small, from 26 countries joined in our vision and opened endowment accounts with us this year.
We’ve conducted rounds of user feedback and testing and consistently heard that we provide:
- Easy onboarding with personalized care
- An industry leading cost free endowment, with 100% of donations going to charity
- An opportunity to be on the cutting edge of innovative philanthropy
- A new audience of potential donors with automated donations via the Angel Alliance
“Angel Protocol is an incredible idea, platform and opportunity. I have loved working with the team. Being new to Angel Protocol we are still unlocking the potential.” Faith Flanagan: Buckminster Fuller Institute
“I view Angel as one of the most exciting concepts I’ve seen in my entire career and, for the first time in years, was filled with optimism. The future may look a bit scary today — but the values driving this are resilient, and I for one am going nowhere…” Nick Kershaw: Impact Marathon
While fundraising continues to be one of the biggest challenges for charities, we believe crypto investors and projects present a new and largely untapped opportunity. In Feb 2022, we launched our first iteration of the Charity Marketplace. Now, we move forwards.
Charity Marketplace Roadmap:
- Fiat donations & additional crypto donation options
- Fiat off-ramp options
- Better charity curation mechanism to improve discoverability and encourage donations
- Fully-fledged governance with charity sub DAOs
- Yield redirection from third party DeFi protocols
- Donor management tools & KYD
- Financial reporting features
- Discrete “programs” fundraises
- Recurring donations
- Cross-chain vaults
The Angel Alliance
We are on a mission to code social impact into smart contract DNA. Over 100 protocols, validators, and NFT projects contributed ~$1.9m in the last year. Turning opaque company giving pledges into verifiable on-chain social impact streams.
Environment, Social, and Governance (ESG) assets are poised to reach $41 trillion by the end of the year, accounting for one in three dollars managed globally. The Angel Alliance will pioneer moving this capital on-chain to increase the speed at which it is deployed, verify impact claims via on-chain analytics, and provide a range of customizable giving and structured impact investment options.
We create new avenues for altruism. Alliance members can:
- Lock for Good like @pleasrdao & @loopfinance
- Stake to an AP Validator (100% to impact projects
- Donate a percentage of NFT sales and resales to a charity or SDG Index of choice
- Seed Impact ventures
- Showcase their impact
A portion of all funds flow into the AP Endowment. Downstream, this is distributed across our network of nonprofits and impact ventures. Connecting capital flow to impact projects, we provide a platform to build, coordinate, and mobilize around our tech stack.
Angel Growth Funds (AGF)
Introducing Angel Growth Funds — Highly customizable and programmable smart contracts complete with DAO tooling integrations. AGFs ability to coordinate and program capital to need is an evolution in the impact financing space. Whether you are building a cause specific community, institutional grade investment fund, or personal trust, building with our tech stack is a way to magnify and guarantee your impact.
AGFs will have preset levers with a range of options. Our goal is to create a tool that allows for the flexibility you need to achieve your vision. Future customizations include;
- Contributors and beneficiaries
- Investment strategies and who sets them
- Endowment maturity and distribution
- Fee optionality for builders
- On-going flexibility of parameters for AGF owners
Go from concept to mobilization in a few clicks. Create a DAO. Launch a token with an automatic AMM pair. Customize distribution via airdrop, contribution matching, or bonding curves. Determine your best governance fit with linear, quadratic, and capped voting options. Simple to complex, the choice is yours.
Accept deposits of all DANO pre-approved assets to be bought, sold, staked, LP’d. Our goal is to let users build diversified portfolios to match their risk level. We are developing strategy builders with a clean UI designed with the non-crypto native in mind.
- Delivery of the MVP. Users will be able to deploy simple Angel Growth Funds with a native multi-sig.
- Intensive testing of DAO deployments (existing tokens, bonding curves & native token) & testing of integrations
- Develop current business development opportunities (UBI, social impact venture studio, estate planning products)
- Deployment of Angel Growth Funds with DAO tooling and integrations
- Addition of new configurable parameters
- DAO tooling integrations in production
- Goal: $20 million of TVL in Angel Growth Funds
- More integrations
- Intensification of business development efforts
- Goal: $50 million TVL
Growth of the Angel Protocol Endowment allows us to be ambitious in the funding directly given to nonprofits and social innovation projects at scale. Effective stewardship is vital, we seek to build and iterate on a meaningful reputation system to guide decision-making.
- Verifiable cross-chain, non-transferable digital identity
- Zero cost to build reputation, no resale value
- Transparent rules & expectations
- Dynamic & updated to prevent concentration of powers
- Reputation expands influence in decision making
We will prioritize and weight activity on our platform to further spotlight impact builders and increase their influence over time. We believe local problems can be funded through global pooling of capital, but distribution of funds should be vetted by local experts with deep contextual understanding.
Evolving reputation corresponds with greater levels of decision making within Angel Protocol including; increased signaling and curation weighting for Charity Marketplace distributions, laddered up voting weightage in governance decisions and use of community funds, quantifiable metric as a factor while electing Board of Directors, and eligibility for DANO governance positions.
We opted for a token, $HALO, because we believe all stakeholders should have agency in our ecosystem. With effective incentive alignment, we can create a flywheel for impact.
At each donation, donors receive a staked charity share of the charity recipient of their donation, entitling them to a share of the charity’s endowment yield, encouraging them to spread awareness to more donors. Charities benefit from staking as it signals curation for a charity, raising their visibility in our Marketplace, and increasing their opportunity for Angel Alliance automated donations.
In our initial design, challenges in value transfer emerged as:
- Mercenary stakers could extract value from charities without signaling long-term support
- Token holders are incentivized to stake to the largest TVL charities, skewing auto donations and limiting the opportunity for smaller charities
To fix this we will introduce
- Concave bonding curve to reduce upside for rent seekers
- ‘Locked’ curation mechanism to refine the ‘Charity Curation Score’ and revenue flows
A high charity curation score and weight result in:
- Charity spotlight on the Charity Marketplace homepage
- Extra rewards for stakers and charities from AGF fees
- Placement in the SDG Index to receive automated donations
- Increased governance rights for stakers
Curation Weight: balance of locked charity shares of any given $HALO staker, defined as the total sum of the product of $HALO to time locked remaining
Charity Weight: sum of curation weights of all respective stakers
Curation Score: Charity weight (total balance of locked CS) + total number of unlocked CS, divided by the TVL of its endowment
Extra Rewards: Generated from AGF platform fees, extra rewards incentivize curation by implementing a revenue share for stakers and the charities they support, according to their total locked CS balance
Curation weight and score provides data-driven revenue flow to charities. A high curation score means locked stakers are willing to accept lower APY, a positive signaling for curation. A low curation score indicates financially motivated stakers and little long term support, low signaling for curation/
Locking CS adds a layer in supporting your favorite causes, shows conviction in AP, and increases your reputation in our impact ecosystem. It also gives you an increased claim on protocol revenue share and influence in protocol governance.
Angel Protocol introduces an innovative approach to redirect capital to need, build a user friendly and customizable Growth Fund & reward participants for their efforts by connecting value flows at every turn. Expanding the ecosystem for impact.
We seek to:
- Expand the option sets for someone who wants to do good, across a range of passive to active activities
- Provide highly customizable, plug and play Growth Funds to empower communities to mobilize, coordinate, and distribute, while also bringing forth and institutional grade investment vehicle for impact and retail alike
- Continually enhance tokenomics and reputation to solidify this value loop; build levels of reputation and enhanced decision making for impact leaders, and ensure our platform is a cooperative model where revenue is shared