Kickstarter announces plan for decentralized crowdfunding protocol built on Celo
December 8, 2021, 4:21PM EST
1 min read
Kickstarter unveiled a plan on Wednesday to build a decentralized protocol for crowdfunding and intends to use the Celo blockchain as a public technology base.
Bloomberg first reported that the firm is building a new company that will create a new platform following the Kickstarter structure but built on a blockchain. Then, it will transition its site to the new protocol in 2022. The transition should be seamless, without affecting how users interact with the site, Kickstarter told Bloomberg.
Kickstarter detailed its plans in a blog post, stating that it intends to build a so-called governance lab to provide independent governance for its new protocol. This will be separate from both the existing Kickstarter and its newly formed company in an effort to build some decentralization into the new design.
"We are entering a significant moment for alternative governance models, and we think there's an important opportunity to advance these efforts using the blockchain. This lab will be led by Camille Canon, co-founder and most recently executive director of Purpose Foundation (US), an organization focused on developing and scaling alternative ownership and governance models," wrote co-founder Perry Chen and CEO Aziz Hasan.
They went on to write:
"We’ve chosen Celo, an open source and carbon negative blockchain platform, as the best technology and community on which to build the protocol. We’re inspired by the Celo ecosystem’s thoughtful approach to building the technology they want to see in the world."
Kickstarter pioneered online crowdfunding in 2009, but the world of decentralization has since taken things a step further through the use of decentralized autonomous organizations (DAOs). DAOs are decentralized communities with governance models that enable participants to democratically decide on proposals, including how contributed funds are used and how the DAO should operate.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.