An initiative has launched with the aim of raising $10 million (around £7.6 million) for Ukraine via a not-for-profit Initial Stake Pool Offering (ISPO) crypto fundraising project.
UkrainianPool is thought to be the world’s first ISPO crypto fundraising project, and is supported by the Ukranian and Lithuanian governments along with a number of startups in the European crypto community.
Participants do not need to directly donate assets to raise money. Instead, they ‘stake’ their funds which generate rewards on the blockchain which are then transferred to a wallet owned by the Ukrainian Government. This means that participants temporarily allow their crypto assets to be frozen, which generates interest at 5%. The more funds are staked in the pool – the more funds can be raised for Ukrainians in need. Participants can unfreeze their assets at any time.
One of many fundraising initiatives set up in support of Ukraine, UkrainianPool was created by Ugnius Šeškas and Karolis Gogaitis, Principal Partners of Beckton Group, Laura K. Inamedinova, Founder & CEO of LKI Consulting, and Paulius Vaitkevičius, Founder & CEO of VILP Solutions. Backers include, MELD, CRYPTO A.M. and ADA Finance. The project was developed with support from the Lithaunian and Ukrainian Governments.
UkrainianPool hopes that people from across the global crypto community will come together to join the ISPO to help it reach an initial target of $10 million in funding for humanitarian efforts.
Laura K. Inamedinova, Initiative Creator of the project, said:
“We know that so many people want to help Ukraine but because of the difficulties of the past few years they may not have the ability to donate much. The ISPO enables them to make a real difference – donations do not cost them anything and could potentially generate much more money than a direct transfer.
“Our entire team and advisors have come together from across the world to freely donate their time and expertise to launch this project because we believe we can make a difference to the people in Ukraine.”
UkrainianPool will enable all contributors to check what happens with funds on an open-sourced protocol. The project operates with support from the Ministry of Digital Transformation of Ukraine and plans to pay out the accumulated rewards every 5 days post the 14-days maturity period.
The project currently runs on the Cardano ecosystem and uses the blockchain’s embedded features to validate transactions through the stake pools and issue rewards for each validated transaction in the form of financial support for Ukraine. Any community member willing to join the initiative can stake their crypto currency directly in the Daedalus or Yoroi wallets without losing any funds. The locked funds are linked to a specific stake pool and can be withdrawn at any time.
Ugnius Šeškas, Initiative Creator of UkrainianPool, explained:
“The format of the ISPO fundraising is not new to the industry but its scope was always limited to commercial projects. The tragic events that transpired in Ukraine made us take action and develop a fast and trustworthy way to support Ukrainian people in the decentralized space.”