The term “proof-of-donation” describes how charitable contributions are included in a blockchain’s operational features. Typically, this refers to the rerouting of payments to a charitable organization, as determined by a smart contract and triggered by each transaction. The charitable contribution may be made to a wallet owned by a nonprofit organization or to a separate fund, the assets of which are managed by a DAO or other entity.
A variant of the conventional proof-of-burn, proof-of-donation seeks to infuse sustainability and benevolence into the blockchain transfer concept. Given the systematic redistribution of cash, as blockchain activity increases, charity donations will also scale and support the network’s long-term sustainability.