Certificate of impact

This concept is similar to the idea of social impact bonds (SIB) / pay-for-success (PFS) contracts / flexible prizes to incentivise impact investors to fund the development of public goods in return for the outcome payments if successful. Crowd Funded Cures is working on implementing this idea to incentivise funding of clinical trials for "unmonopolisable therapies" where patents do not work because you cannot recover your investment by charging a monopoly price e.g. finding new uses for off-patent drugs, supplements, plant medicines & psychedelics, diets and non-drug / lifestyle interventions - see https://crowdfundedcures.medium.com/pay-for-success-contracts-a-new-model-to-develop-new-therapies-from-old-drugs-f69b2189184d

This creates a scalable business model on the basis that the cost savings will exceed the amount of outcome payments. For example, a SIB for homelessness, a local govt pays $10k per homeless person housed for at least a year, which saves the local govt$100k in reduced policing costs and economic harm. In the same way a $50m SIB for obtaining FDA approval for repurposing off-patent fluvoxamine to treat Covid could save governments$1b+ from reduced reliance on patented drugs such as molnupiravir - see https://golab.bsg.ox.ac.uk/community/blogs/innovative-financing-mechanisms-2/

In early May 2021, the organization Noora Health—which implements educational programs for mothers of newborns in South Asia—launched a non-fungible token (NFT) which may in some respects be regarded as a certificate of impact. The auction opened with a list price of $2.5 million, and computer scientist and tech entrepreneur Paul Graham—a long-time supporter of the organization—placed the winning bid of ETH 1337, at the time worth$5.23 million (Noora Health 2021; Graham 2021).million.[1][2] A difference between this use of NFTs and certificates of impact as conceived by Christiano is that those bidding in the NFT auction are paying for the prospect of future impact, whereas an impact purchase is a transaction involving the transfer of past impact.

In late July, a group of authors in collaboration with Vitalik Buterin proposed a model called retroactive public goods funding (Wang et al. 2021).[3] The model consists of a decentralized autonomous organization (DAO), called "the Results Oracle", that funds projects considered to have high social value. The funding is done retrospectively rather than prospectively, by assessing the value of the project after it has been completed. Once the Results Oracle evaluates a project, it can send the reward to the person or group responsible for the project or, alternatively, it can use the funds to establish a price floor for a token associated with the project. As the authors note, rewarding via a project token in effect creates a prediction market for the amount of funding the Results Oracle will decide to allocate to the project, and allows the same project to be funded multiple times, or by other sources besides the Results Oracle.

Graham, Paul (2021) An NFT that saves lives, Paul Graham’s Website, May.

Noora Health (2021) Save thousands of lives, OpenSea.

Related entries

1. ^

Noora Health (2021) Save thousands of lives, OpenSea.

2. ^

Graham, Paul (2021) An NFT that saves lives, Paul Graham’s Website, May.

3. ^

Wang, Jinglan et al. (2021) Retroactive public goods funding, Ethereum Optimism Blog, July 20.

Related entries

Applied to January 1, 2030 by Pablo at 8mo

In late July, a group of authors in collaboration with Vitalik Buterin proposed a model called retroactive public goods funding (Wang et al. 2021). The model consists of a decentralized autonomous organization (DAO), called "the Results Oracle", that funds projects considered to have high social value. The funding is done retrospectively rather than prospectively, by assessing the value of the project after it has been completed. Once the Results Oracle evaluates a project, it can send the reward to the person or group responsible for the project or, alternatively, it can use the funds to establish a price floor for a token associated with the project. As the authors note, rewarding via a project token in effect creates a prediction market for the amount of funding the Results Oracle will decide to allocate to the project, and allows the same project to be funded multiple times, or by other sources other thanbesides the Results Oracle.

In late July, a group of authors in collaboration with Vitalik Buterin proposed a model called retroactive public goods funding (Wang et al. 2021). The model consists of a decentralized autonomous organization (DAO), called "the Results Oracle", that funds projects considered to have high social value. The funding is done retrospectively rather than prospectively, by assessing the value of the project after it has been completed. Once the Results Oracle selectsevaluates a project, it can send the reward to the person or group responsible for the project or, alternatively, it can use the funds to establish a price floor for a token associated with the project. As the authors note, rewarding via a project token in effect creates a prediction market for the amount of funding the Results Oracle will decide to allocate to the project, and allows the same project to be funded multiple times, or by sources other than the Results Oracle.

CertificatesRelated models

Recently, a number of impact and non-fungible tokensrelated funding models have been proposed.

In late July, a group of authors in collaboration with Vitalik Buterin proposed a model called retroactive public goods funding (Wang et al. 2021). The model consists of a decentralized autonomous organization (DAO), called "the Results Oracle", that funds projects considered to have high social value. The funding is done retrospectively rather than prospectively, by assessing the value of the project after it has been completed. Once the Results Oracle selects a project, it can send the reward to the person or group responsible for the project or, alternatively, it can use the funds to establish a price floor for a token associated with the project. As the authors note, rewarding via a project token in effect creates a prediction market for the amount of funding the Results Oracle will decide to allocate to the project, and allows the same project to be funded multiple times, or by sources other than the Results Oracle.

Wang, Jinglan et al. (2021) Retroactive public goods funding, Ethereum Optimism Blog, July 20.

Graham, Paul (2021) An NFT that saves lives, Paul Graham’s Website., May.