Web3 Charity Teddy DAO raises money through daily NFT auctions.

The software company Lucky Friday, which specializes in Web3 technology, is introducing Teddy DAO, a collection of perpetual non-fungible tokens (NFTs) that donate their sale proceeds to charity.

In collaboration with the global fundraising organization JustGiving, Teddy DAO aims to use cryptocurrency as a means of funding social impact projects worldwide.

Starting on June 23, Teddy DAO will hold daily auctions for one of its teddy bear NFTs, created by digital artist Yumi and minted on the cross-chain smart contract platform Moonbeam. The auction winners can then donate the proceeds to one of the 400 charities supported by JustGiving, where the cryptocurrency is converted to fiat currency and donated through the platform.

Teddy DAO plans to eventually involve the 450,000 charities supported by JustGiving in its mission to solve real-world problems through cryptocurrency donations.

David Chapman, the founder of Teddy DAO, told Blockchain that the project was inspired by an NFT sale he conducted last year, in which he sold a one-of-a-kind collectible and raised $15,000 for the humanitarian aid organization UNICEF. He noted that this event not only highlighted the demand for NFT-backed charity donations, but also indicated that the method could be used to onboard people who are new to Web3.

Chapman said, “Whereas NFTs have largely been for-profit, and the few instances of charitable giving have been a one-time donation, we thought it best to showcase a new use for NFTs by creating digital collectibles that will be minted once per day, thereby guaranteeing a constant stream of revenue for charities within JustGiving’s network of partners.”

Teddy DAO, a decentralized autonomous organization (DAO) registered as a 501(c)(3) organization, aims to build its community to contribute collectively to social good.

Chapman said, “Over time, we would love to see it develop to where donors are selecting the Teddy DAO as a charity to donate to and build a treasury that can be voted on by the holders of the NFTs as to what social good initiatives to deploy to, whether that is to build wells in a place of need or a school etc.”

Despite an ongoing bear market that has largely chilled NFT sales, crypto-based charity donations have caught on as a way to leverage blockchain-based currencies and NFTs for social impact.

Earlier this month, Ethereum founder Vitalik Buterin donated $10 million from the sale of the memecoin Shiba Inu to an India-based COVID relief organization. In May, the crypto funding platform Endaoment teamed up with the non-profit Global Giving to expand its list of organizations that accept crypto donations.