The blockchain tech is taking the banking system, where no other traditional bank could endeavor and that is in the arena of the excluded communities. There have been a few blockchain-powered platforms that have the interest of the marginalized communities at heart, for example Humaniq, a platform that caters to the unbanked population.
Now here is another blockchain platform that is aiming to empower the regular people throughout the world, all the while promoting the interests of the excluded communities in a fair and sustainable way; called Moeda.
What is Moeda?
As opposed to its complex name, it is in fact a rather simple network that offers the classic peer-to-peer payments and remittance in order to provide entrepreneurs all over the world, with a platform to achieve their goals.
The Moeda Business Model
The platform’s business model is basically grounded on the overall sustainable growth and development of businesses. It comprises of three components,
- A registered digital token, the MDA
- A peer-to-peer transfer application
- A mission to drive local businesses.
The Moeda Token
The registered digital token of the platform is the MDA. And since Moeda itself is on the Ethereum blockchain, the tokens are the standard ERC20 token. And thus they can be stored in the numerous wallets that are compatible with Ethereum.
The Advantages of Moeda technology
Sustainability for Local Businesses
One of the core functions of the platform to help investors fund the usually ignored local businesses in order to promote their wellbeing and sustainable development. Owing to its specific architecture, Moeda has the ability to support sustainability, through which it anticipates to lend a helping hand to local businesses, like in overcoming high fees, high interest rates, no access to credit, etc.
However, sustainability is not all that the platform has to offer. In addition to being a beacon of hope for local businesses, it also provides transparency between beneficiaries and even investors.
Tracking of Investments
Moeda app also offers the feature of tracking loans and donations to different projects, and that entire process is transparent. This will be done so in a blog-like format, where investors will have access to view photos and videos of the projects they have made donations to. Other than that, investors can also provide guidance and motivation to the project.
The Moeda platform has taken projects related to some pressing issues under the wings of their Seed Program. Where they work in collaboration with local schools or businesses, alongside the UN in order to achieve the UN Sustainable Development Goals. Some of their Seed projects are,
- Sustainable Coffee
- Smart Water: Clean Water
- Copajas: Minimally Processed Food
- COOPEREDE: Community Production
- Cooperfamiliar: Milk and Dairy
- Central Cerrado: Eco-social products
The growth of the platform’s impact portfolio depends upon the investments in the Moeda Seed Projects and the Moeda Funds, which are supposed to yield risk-adjustable competitive returns.For projects taking place in rural areas, Impact credit is applied, which is a low risk portfolio, specifically designed for the purpose of improving liquidity and maintaining one’s savings. However, the grants and donations that are invested in projects, without any financial returns. But they are managed thoroughly as they would be in a project with returns. There is no biasness in this case.
The Moeda impact metrics make use of the Nash Equilibrium, which according to Investopedia, is a concept within game theory where the optimal outcome of a game is where there is no incentive to deviate from their initial strategy. Through this Moeda proves that is in fact possible for a project’s investment and performance to co-exist in a sustainable manner. It results in a best of both worlds kind of a situation.
Moeda’s Impact Formula
The platform has an impact formula in order to demonstrate the road towards the outcomes and results of various projects. It makes use of four key performance indicators for measuring the financial and extra-financial returns of the Moeda Seed Projects, which are,
The Moeda Team
It is frankly quite refreshing to see that the future of technology is being used to help the marginalized, other than just focusing on money. The world definitely doesn’t need more millionaires, what it does need, is individuals and companies working towards a sustainable planet.