There are no more Donations or Volunteers, Only Investments.
There are two predominant components in non-profits concerning public spaces today:
1. Investment funds levied by donations:
The non-profit budgeting system is often based on private money or government grants. Most of the public spaces that are known as landmarks in New York City today such as Bryant Park, the Highline, and Central Park, operate with more than 80% private donations or sponsorship money.
Currently, the whole idea is to centralize around how much money an organization is able to raise with private donations or gain from government. Only a certain tier of participants, non-profit founders, directors, etc, are responsible and privy to this. There are no rewards nor financial incentives for others with less dispensable resources to take part in. Ultimately, it ends up being a pure numbers game of how much an organization is able to raise.
The current labor system of non-profits rely mostly on volunteers. At best, participants receive stipends but are mostly only provided emotional satisfaction as a reward. This system make long-term commitment difficult and participation inefficient when the experience level or expertise of volunteers is rarely factored in. This type of practice relies on an abstract value proposition and is not the best way to measure different types of tasks. Public parks constantly need extra pairs of hands but all-in-all, volunteering systems are not the most productive structures.
Image © Highline
Token-based equity will be a dynamic investment for a local economy applied around a public space. It will incentivize not only the investors or an institution affiliates but all the participants and local stakeholders. As people earn tokens for any given task or contribution, everyone will be motivated not by an intangible goodwill or a social mission, but instead real returns which can be re-invested or leveraged to empower more production. It becomes a very productive small-scale local economy.
Herbert Von King Park raises 100,000$ from a private sponsor and create 100,000 HVK coins with it. Each coin could be worth 1 dollar. Every time Herbert Von King Park receives an investment or the community increasingly uses the coin, the value will go up more. The crypto would be distributed based on pre-determined tasks and events after establishing a consensus on venues and occasions. For instance, if you participate in a park cleaning day or organize park public events, you earn coins and efficiently transfer them to others or various occasions. Over time, an entire micro-economy could rally behind the functionality and worth of a dedicated token.
With privatized coin systems and blockchain ledgers, you can directly barter with crypto for relative talents and reward volunteering activities, administrative work, or tasks based on predetermine rules just like task based point system. A distributed system can create a very clear system for this. Best of all, the overarching motivation to improve the park will be paired with a real impetus to bring in more investment and attention in order to raise everyone’s worth of stake.