Charity Protocol 💚

🌐 View Live Demo →

Transparent Giving That Actually Helps People

A community-driven platform where contributors pool funds, vote on what to buy, and watch goods ship directly to verified charities — with zero middlemen, zero waste, and no cash to anyone.

📋 Table of Contents

The Vision
Core Problems We Solve
How It Works
Key Design Decisions
Critical Design: The Money Lockbox
Technical Architecture
Stablecoin Strategy
Open Questions & Future Work
Similar Projects & Differentiation
Project Structure
Running the Mockup

🎯 The Vision

Imagine a world where:

You voluntarily contribute to a shared charity pool
Everyone can see exactly how much is in the pool (full transparency)
The community votes on what to buy (true democracy)
Rich people can't dominate (quadratic voting with diminishing returns)
Money ONLY goes to products — never cash to anyone, ever
NO ONE can access the money — not even the founder — only approved vendor purchases
Once started, it runs forever — no human required

This is Charity Protocol: transparent giving that actually helps people.

💭 The Philosophy

This Is Not A Company

This is a protocol. Like Bitcoin or Ethereum — once deployed, it runs forever without any staff.

No CEO
No employees
No salaries
No overhead
No office
No board meetings

The founder's role: Write the code. Deploy it. Walk away.

This Is Not An Investment

Let's be absolutely clear:

❌ There is no token to buy
❌ There is no price that goes up
❌ You will not make money

This is for people with kind hearts who want real change in the world.

Your "return on investment" is knowing you helped someone.

The Idea Matters More Than This Implementation

Even if this specific project doesn't take off, the blueprint matters:

✅ Trustless charity is possible
✅ Quadratic voting can democratize giving
✅ Goods-not-cash prevents waste
✅ Community moderation replaces employees
✅ Smart contracts remove corruption

If someone builds a better version of this, that's a win. The goal isn't ownership — it's fixing how the world helps people.

Putting Existing Pieces Together

Everything here already exists:

Stablecoins (USDC)
Smart contracts (Solidity)
E-commerce APIs (Amazon, Walmart)
Quadratic voting (Gitcoin proved it)
Community moderation (Reddit, Discord)

We're just combining them in a new way to solve a real problem.

🔥 Core Problems We Solve

Problem 1: Traditional Charity Waste

"I hear a lot of charities take most of the money and never help anyone"

Our Solution: Goods, not cash. Instead of giving money to a charity (who might waste 80% on "overhead"), we:

Vote to buy specific goods (200 winter coats)
Order directly from Amazon/Walmart via API
Ship directly to the verified charity's address
Track the package publicly

Result: 100% of funds become tangible goods. No middleman can take a cut.

Problem 2: Plutocracy in Voting

"We don't want a rich person to decide where everything gets allocated"

Our Solution: Quadratic voting with diminishing returns.

Contribution	Votes (Linear - Bad)	Votes (Quadratic - Fair)
$100	100 votes	10 votes
$1,000	1,000 votes	31 votes
$10,000	10,000 votes	100 votes

Formula: Votes = √(Contribution in dollars)

A billionaire can't buy control. Many small voices outweigh one whale.

Problem 3: Corruption in Execution

"Don't we still need trusted people to spend the money?"

Our Solution: Trustless auto-execution.

Vote Passes → Smart Contract Releases Funds → Amazon API Called → Goods Shipped

No human ever handles the money. The code IS the law.

For edge cases that can't be automated, we can optionally use:

AI (Claude API) as a neutral executor for judgment calls
Multi-sig community oversight as a last resort
Funded by the treasury itself

Problem 4: Crypto Volatility

"It can't be a fluctuating coin, the money pool can't be all over the place"

Our Solution: Stablecoins only. We use USDC (pegged 1:1 to USD).

$100 today = $100 tomorrow = $100 next year. No volatility.

⚙️ How It Works

The Flow

┌─────────────┐     ┌─────────────┐     ┌─────────────┐     ┌─────────────┐
│  CONTRIBUTE │ --> │   PROPOSE   │ --> │    VOTE     │ --> │   EXECUTE   │
│             │     │             │     │             │     │             │
│ Add USDC to │     │ "Buy 200    │     │ Community   │     │ Smart       │
│ the pool    │     │ coats for   │     │ votes with  │     │ contract    │
│             │     │ Ballard     │     │ quadratic   │     │ auto-ships  │
│             │     │ Food Bank"  │     │ system      │     │ via Amazon  │
└─────────────┘     └─────────────┘     └─────────────┘     └─────────────┘

Detailed Steps

Contribute
- Connect wallet (or traditional payment in future)
- Deposit USDC to the transparent treasury
- Receive voting power (√ of contribution)
Propose
- Any member can create a proposal
- Must specify: goods, quantity, vendor, verified recipient
- Small stake required to prevent spam (refunded if proposal passes)
Vote
- 7-day voting window
- Quadratic voting prevents plutocracy
- Simple majority (>50%) to pass
- Can delegate votes to trusted members
Execute
- Passed proposal triggers smart contract
- Contract calls vendor API (Amazon, Walmart, etc.)
- Order placed with recipient's verified address
- Tracking number posted publicly
- Delivery confirmed with photo proof

🧠 Key Design Decisions

1. Goods Over Cash

Why: Eliminates charity misuse. 100% of funds become tangible help.

How: Direct vendor API integrations. Package tracking for transparency.

2. Verified Recipient Registry

Why: Not all charities are trustworthy. Need curation.

How: Community nominates → Community vets → Trial period → Full verification

Criteria for verification:

Proven track record of helping people
Physical address verified
Previous successful deliveries
High community approval rating

Examples: Ballard Food Bank (Seattle), DESC, YouthCare

3. Quadratic Voting

Why: Prevents wealth-based control while still rewarding contributors.

Formula: Voting Power = √(Total Contribution)

Anti-Sybil: Prevent splitting into many wallets via:

Proof of Humanity (future)
Social vouching
Contribution history

4. Stablecoin Treasury

Why: Volatility would destroy the pool's value randomly.

Choice: USDC on Base (Coinbase's L2)

Transaction fees: $0.001 - $0.01
Backed by regulated entity (Coinbase)
Fast growing ecosystem
1:1 USD peg, fully audited reserves

5. AI as Optional Executor

Why: Some edge cases need human-level judgment.

How: Claude API can handle:

Complex vendor negotiations
Receipt verification
Dispute resolution

Constraint: Only used when absolutely necessary. Funded by treasury.

6. Self-Sustaining System 🔄

Goal: "Start this, walk away, it runs and changes the world on its own."

How it funds itself:

2% operational fee on all contributions
Covers: hosting, smart contract gas, AI API calls, emergency reserves
Fully transparent: everyone sees where ops funds go
If ops fund grows too large, excess returns to main treasury

Autonomous operation:

Smart contracts handle 95%+ of operations
AI handles edge cases (4%)
Community votes on remaining rare cases (1%)
No single human required for day-to-day operations

7. Fully Autonomous Moderation 🤖

The Question: "How do we ban trolls without employees?"

The Answer: The community IS the moderation team. No humans on payroll.

Layer 1: Economic Deterrence (Automatic)

Post proposal: 10 USDC stake required
Post in chat: 1 USDC stake required (or free for verified contributors)
Get community-flagged: Lose stake

This alone stops 90% of trolls. Real money on the line.

Layer 2: Algorithmic Filters (Automatic)

Before any content goes live:

Profanity filter - Open source word list, community can update
Spam detection - Repeated messages, suspicious links, rate limiting
Pattern matching - Known scam phrases, slurs, hate speech

If flagged by algorithm → Post blocked, stake returned. No human needed.

Layer 3: Community Flagging (Decentralized)

Any member can flag content
   ↓
10 flags from unique wallets → Content auto-hidden
   ↓
25 flags → User gets a STRIKE
   ↓
3 strikes → AUTO-BAN from chat AND proposals
   ↓
(Can still vote forever - that right is permanent)

Layer 4: Appeals (Decentralized)

Banned user creates "Appeal Proposal"
Community votes (simple majority, 7 days)
If passes → Ban lifted, strikes reset
If fails → Ban stays, can appeal again in 90 days

The Complete Flow

┌─────────────────────────────────────────────────────────┐
│              CONTENT SUBMISSION FLOW                    │
│                                                         │
│  User writes message/proposal                           │
│           ↓                                             │
│  [STAKE REQUIRED] ← Economic barrier                    │
│           ↓                                             │
│  [ALGORITHM CHECK] ← Profanity, spam, patterns          │
│           ↓                                             │
│  ✓ Posted to community                                  │
│           ↓                                             │
│  [COMMUNITY FLAGS] ← Any member can flag                │
│           ↓                                             │
│  10+ flags → Content hidden                             │
│  25+ flags → User gets strike                           │
│  3 strikes → Auto-banned (chat + proposals)             │
│           ↓                                             │
│  ✓ Can still VOTE forever (permanent right)             │
└─────────────────────────────────────────────────────────┘

Why This Works Without Employees

Component	Who/What Handles It
Stake requirement	Smart contract
Profanity filter	Open source word list (community maintains)
Spam detection	Algorithm (rate limits, duplicate detection)
Community flags	Members do it themselves
Strike counting	Smart contract
Auto-ban	Smart contract executes at 3 strikes
Appeals	Community votes, contract executes result

Zero employees. Zero salaries. Zero overhead. Forever.

Third offense: Permanent ban from proposing (can still contribute/vote)

8. Charity Vetting Process ✅

Problem: How do we know a charity is legit and actually helps people?

Nomination Phase:

Any member can nominate a charity
Must provide: name, location, website, contact
Nominator stakes 20 USDC (refunded if approved)

Verification Phase:

Video Application - Charity submits 2-5 min video showing:
- Their facility/operations
- People they've helped (with permission)
- How they would use donated goods
Community Review - 14-day voting period
Threshold - Need 67%+ approval from voters
Background Check - AI reviews public records, 990 forms (for US nonprofits)

Probation Period:

First 3 months: max $5,000 per proposal
Must confirm receipt of all deliveries with photos
Community can vote to end probation early OR remove

Removal Process:

Any member can propose removal
Requires evidence (missed deliveries, fraud, etc.)
7-day vote, simple majority to remove
Removed charities cannot re-apply for 1 year

Trust Levels:

Level	Max Per Proposal	Requirements
🆕 New	$5,000	Passed initial vote
✅ Verified	$25,000	3+ successful deliveries, 90%+ rating
⭐ Trusted	Unlimited	10+ deliveries, 95%+ rating, 6+ months

Key Rule: Charities apply themselves (we don't give them cash, just products). Community votes on whether to accept their application.

9. Chat & Community Moderation 💬

Problem: Community chat can have off-topic or inappropriate content.

Solutions:

AI moderation for obvious violations (slurs, spam, threats)
Community flagging system
Temporary mutes for violations
But: Never remove voting rights. Mute from chat ≠ ban from voting.

10. Voting Rights - Never Removed 🗳️

Core Principle: Once you contribute, you can ALWAYS vote. No exceptions.

If someone misbehaves, they lose proposing AND chat privileges, but NEVER voting rights.

Status	Can Vote?	Can Propose?	Can Chat?
Good standing	✅ Yes	✅ Yes	✅ Yes
1st offense (warning)	✅ Yes	⚠️ Warning	⚠️ Warning
2nd offense	✅ Yes	❌ 30-day ban	❌ 30-day ban
3rd offense	✅ Yes	❌ Permanent	❌ Permanent
Banned user	✅ ALWAYS	❌ No	❌ No

Why? Your contribution gave you voting power. That's a permanent right. Being a jerk in chat doesn't take away what you paid into the system.

Voting power expiration? 🤔 (Open question)

Option A: Voting power lasts forever once you contribute
Option B: Need to contribute at least 1 USDC/year to keep voting rights
Option C: Voting power decays slowly (like radioactivity) - need to "top up"
Decision: TBD - community should vote on this

11. AI Concerns & Alternatives 🤖

The worry: "Having an AI handle this much money without control is a big trust issue"

Valid concerns:

AI could be manipulated via prompt injection
AI could hallucinate wrong decisions
Community-voted system prompt could be gamed
No accountability if AI makes a mistake

Options to consider:

Option	Pros	Cons
A. No AI	Maximum trust, no black box	Some edge cases can't be automated
B. AI with strict limits	Handles 90% of edge cases	Still requires trust in AI
C. AI proposes, humans approve	Best of both worlds	Slower, requires human involvement
D. Multiple AI consensus	Reduces single point of failure	More expensive, complex

Current recommendation: Start with Option A (No AI), add limited AI later if needed.

If we use AI:

Maximum spending limit: $500 per AI decision
All AI decisions publicly logged with reasoning
Any community member can flag for human review
24-hour delay on AI-made decisions (allows intervention)

12. This Is NOT An Investment 💚

Let's be crystal clear:

❌ This is NOT "buy a coin and watch it go up"
❌ There is NO token to trade
❌ You will NOT make money from this
❌ This is NOT a get-rich-quick scheme

This is for people with kind hearts who want real change in the world.

When you contribute, your money goes to help people. Period. The "return on investment" is knowing you helped.

📦 Trustless Allocation Methods

Beyond just shipping products via Amazon, here are all the trustless ways we can allocate funds to ensure 100% goes to real help:

Direct Product Delivery

Vendor	What We Can Buy	Trustless Because
Amazon	Anything	Direct shipping, public tracking
Walmart	Groceries, supplies	Same as above
Costco	Bulk supplies	Same as above
Chewy	Pet food/supplies	Animal shelters need this!

Digital Delivery

Method	What It Does	Trustless Because
Gift Cards (digital)	Grocery, essentials	Sent directly to verified email, instant
Transit Passes	Bus/subway passes	Purchased via city transit APIs
Meal Delivery	DoorDash/UberEats	Meals to homeless individuals

Direct Bill Pay

Type	How It Works	Trustless Because
Medical Bills	Pay hospital directly via portal	Proof of payment, no cash to patient
Tuition	Pay school directly	Scholarship never touches student wallet
Rent	Pay landlord via Plastiq/similar	Prevents misuse of funds
Utilities	Pay electric/water directly	Same as above

Key Principle: Never cash, always services/products

We don't give anyone money. We pay for things on their behalf. This ensures funds are used for their stated purpose.

🏠 Thinking Even Bigger: Housing & Land

"If this gets big enough, I want to actually solve the world's problems with this."

Housing is hard because it requires legal ownership. But there are still trustless ways to help:

Immediate Solutions (Can Do Now)

Method	How It Works	Trustless?
Hotel Vouchers	Book rooms via Booking.com API	✅ Yes - prepaid, no cash
Rent Payment	Pay landlord directly via Plastiq	✅ Yes - proof of payment
Utility Bills	Keep people in homes by paying bills	✅ Yes - direct payment
Construction Materials	Order lumber from Home Depot	✅ Yes - ships directly

Medium-Term Solutions (Needs Partnerships)

Method	How It Works	Challenge
Tiny Home Kits	Amazon sells prefab tiny homes ($5-20k)	Need land to put them on
Mobile Homes	Can be purchased and delivered	Same - land needed
Container Homes	Shipping containers converted to homes	Partnership with builders
Habitat for Humanity	We fund materials, they build	Partnership needed

Long-Term Vision (When Treasury Is Large)

Method	How It Works	Requirements
Community Land Trust	DAO buys land, holds in trust	Legal entity (LLC or nonprofit)
Bulk Land Purchase	Buy cheap rural land, develop for housing	Significant capital ($1M+)
Partner with Developers	Fund affordable housing projects	Trust in partner

The Land Trust Model

If Charity Protocol grows large enough:

Create a legal entity (Wyoming DAO LLC or nonprofit)
DAO votes to purchase land (cheap rural/industrial zones)
Land held in trust - never sold, only used for housing
Place tiny homes/mobile homes on the land
People live rent-free or very low-cost

The land is never sold — it's held permanently for the community. This is how community land trusts work.

What We Can Do TODAY

Even before getting to land/housing, we can:

✅ Pay rent to prevent evictions
✅ Pay utility bills to keep people housed
✅ Book hotel rooms for emergency shelter
✅ Order sleeping bags, tents for immediate need
✅ Fund Habitat for Humanity builds (materials only)

Start small. Prove the model works. Scale to housing.

⚠️ Edge Cases & Attack Vectors

Complete transparency means telling you how this could go wrong:

Smart Contract Risks

Risk	Severity	Mitigation
Code vulnerability	High	Professional audit, bug bounty program
Upgrade attack	High	No upgrade capability (by design)
Gas price spike	Medium	Ops fund covers gas, can adjust fee %

Vendor Risks

Risk	Severity	Mitigation
Vendor address change	Medium	67% vote + 7-day delay to update
Vendor stops accepting crypto	Medium	Multiple vendors, community can add new ones
Vendor collusion with attacker	Low	Major vendors have reputation to protect

Community Risks

Risk	Severity	Mitigation
Sybil attack (fake accounts)	High	Quadratic voting, Proof of Humanity (future)
Whale manipulation	Medium	Quadratic voting limits power
Coordinated voting attack	Medium	7-day voting windows, transparent history
Proposal spam	Low	10 USDC stake requirement

Charity Risks

Risk	Severity	Mitigation
Charity resells products	Medium	Community can vote to remove, probation period
Fake charity application	Medium	Video verification, 67% approval threshold
Charity closes down	Low	Products already delivered, no ongoing dependency

External Risks

Risk	Severity	Mitigation
USDC depeg	Medium	Using most regulated stablecoin available
Regulatory shutdown	Medium	Comply with laws, transparent operation
Base network issues	Low	Coinbase-backed, growing ecosystem
Frontend hijacking	Medium	Official domain, contract address verification

What We CAN'T Prevent

If Amazon/Walmart themselves become untrustworthy (extremely unlikely)
Fundamental smart contract vulnerabilities we haven't found
Black swan crypto events (entire ecosystem collapses)

Our approach: Be transparent about risks. Don't pretend they don't exist.

Voting Attack Edge Cases (Critical to Address)

Edge Case	Description	Priority	Mitigation
Flash Loan Attack	Borrow millions, contribute, vote, return loan in one tx	🔴 Critical	Voting power locked for 7 days after contribution
Sybil Attack	Create 100 wallets with $100 each to game quadratic voting	🔴 Critical	Proof of Humanity/passport verification (future)
Vote Buying	Pay people off-chain to vote a certain way	🟠 High	Can't fully prevent, transparent voting helps
Last-Minute Manipulation	Swing votes in final hour	🟡 Medium	24-hour "no voting" period before close
Voter Apathy	Nobody votes, proposals never pass	🟡 Medium	Auto-pass if >50% yes after 7 days minimum
Tied Vote	Exactly 50/50	🟢 Low	Proposal fails on tie (conservative default)

Smart Contract Edge Cases

Edge Case	Description	Priority	Mitigation
Reentrancy	Drain funds via recursive calls	🔴 Critical	Checks-effects-interactions pattern, ReentrancyGuard
Integer Overflow	Math errors with large numbers	🔴 Critical	Solidity 0.8+ has built-in overflow checks
Front-running	Miners/validators extract value	🟠 High	Use commit-reveal voting scheme
Upgrade Attack	Malicious contract upgrade	🔴 Critical	NO UPGRADES - contract is immutable by design
Gas Griefing	Make functions too expensive to call	🟡 Medium	Gas-efficient code, ops fund covers gas

Vendor/Execution Edge Cases

Edge Case	Description	Priority	Mitigation
Amazon Account Banned	Lose ability to order	🟠 High	Multiple vendor accounts, multiple vendors
Price Increase	Product costs more than approved	🟡 Medium	10% buffer in proposal, or auto-fail if over
Out of Stock	Product unavailable	🟡 Medium	Refund to treasury, re-propose
Wrong Address	Shipped to wrong place	🟡 Medium	Charity confirms address before execution
Package Stolen	Delivered but stolen	🟡 Medium	Require signature, photo confirmation

Legal/Regulatory Edge Cases

Edge Case	Description	Priority	Mitigation
Securities Classification	Token deemed security	🟡 N/A	No token! USDC only, no investment returns
Money Transmission Laws	Classified as money transmitter	🟠 High	Legal review, may need state licenses
OFAC Sanctions	Can't send to certain countries	🟠 High	Whitelist charities in allowed jurisdictions only
Tax Implications	IRS wants records	🟡 Medium	All data exportable, contributors handle own taxes
Platform Shutdown Order	Government says stop	🔴 Note	Decentralized - no server to shut down

Detailed Legal Reasoning

1. Securities Classification

Why it matters: The SEC has sued Ripple, Coinbase, and many others for selling unregistered securities.
The test: "Is there an investment with an expectation of profit?"
Why Charity Protocol is SAFE: No token exists. No profit motive. You contribute USDC → get voting power → get NOTHING back. This is a donation, not an investment. More like donating to PBS and getting a tote bag.

2. Money Transmission Laws

Why it matters: PayPal, Venmo, Western Union need licenses in every state to "move money for others."
The concern: Is Charity Protocol moving money from contributors to vendors to charities?
Possible defense: Charity Protocol doesn't have a human custodian — the smart contract autonomously executes. There's no "money transmitter" because there's no person doing the transmitting.
Action needed: Get legal review before launch.

3. OFAC Sanctions

Why it matters: US Treasury's Office of Foreign Assets Control has a list of countries/entities you CANNOT send money to (North Korea, certain Russian individuals, etc.).
Real precedent: Tornado Cash was sanctioned in 2022. US persons cannot use it.
Charity Protocol approach: Only whitelist US-based charities initially. Expand to ally nations later. Never allow sanctioned jurisdictions.

4. Tax Implications

Why it matters: IRS wants to know about crypto transactions.
Questions: Are contributions tax-deductible? (Probably not unless 501(c)(3) status). Do contributors owe taxes? (They get nothing back, so probably no).
Charity Protocol approach: All data is exportable. Contributors handle their own taxes. We're transparent about everything.

5. Platform Shutdown Order

Why it matters: Governments have shut down BTC-e, Liberty Reserve, various exchanges.
Why Charity Protocol is protected: Smart contract runs on Base/Ethereum — no central server. The website could be seized, but the contract keeps running. Anyone can interact directly via Basescan.
Realistic risk: If domain is seized, casual users lose access. Power users can still use the contract directly.

✅ Good News: Why Charity Protocol Is Legally Safer Than Most Crypto Projects

You've accidentally designed around many legal issues by:

Design Decision	Legal Benefit
No token	Can't be classified as a security
No profit motive	Not an investment, just a donation
Full transparency	Nothing to hide from regulators
Decentralized contract	No server to shut down
Only major vendors	Amazon/Walmart are legit, not shady entities
USDC only	Regulated stablecoin, not random crypto
Contributors get nothing back	No "expectation of profit" = not a security

The bottom line: Charity Protocol is closer to Red Cross + transparent technology than to a crypto investment scheme.

Community Edge Cases

Edge Case	Description	Priority	Mitigation
51% Attack	Majority colludes maliciously	🔴 Critical	Geographic diversity, time delays on big decisions
Brigading	External group floods platform	🟠 High	Contribution requirement to vote, stake requirement
Single-Issue Capture	Only funds one cause forever	🟡 Medium	Encourage diversity, category limits (future)
Community Dies	Everyone leaves	🟡 Medium	Funds remain locked, can revive anytime

🌍 The Bigger Vision

"If ideas like this catch on in general, I think that'd be better for the world to have all of tech using tech like this."

This isn't just about Charity Protocol. It's about proving a new model:

Transparent by default — All transactions public, all votes visible
Community-controlled — No billionaire CEO, no board of directors
Autonomous — Runs without employees, overhead, or bureaucracy
Trustless — Don't trust us, trust the code
Direct impact — Money → goods → people. No middlemen taking cuts.

If this works, it can be replicated for:

Education funding (books, supplies direct to schools)
Medical aid (medicine, equipment direct to clinics)
Environmental (trees planted, cleanup supplies)
Animal welfare (food, supplies to shelters)
Disaster relief (emergency supplies, direct shipping)

The goal isn't to own this idea. The goal is for this idea to spread.

The README you're reading right now is an open-source blueprint. Anyone can fork it, improve it, launch their own version. If someone builds a better Charity Protocol, that's a win.

We're not building a company. We're building a new way for humanity to help each other.

🏠 Land Ownership: How DAOs Own Property

"DAO votes to purchase land - who would own this land though?"

The Problem: A smart contract can't sign a deed or appear on a property title.

The Solution: Create a legal entity that the DAO controls.

Legal Wrapper Options

Option	How It Works	Pros	Cons
Wyoming DAO LLC	Wyoming law allows LLCs controlled by smart contracts	Legally recognized, votes = decisions	Wyoming-specific
Delaware LLC	LLC with operating agreement that follows DAO votes	Most flexible, widely accepted	Needs registered agent
501(c)(3) Nonprofit	Board elected by DAO, follows votes	Tax-exempt, credibility	Stricter rules, slower
Community Land Trust	Existing structure for community-owned land	Designed for this purpose	Still needs board

How It Would Work

┌─────────────────────────────────────────────────────────────────────────┐
│                        DAO LAND ACQUISITION FLOW                        │
│                                                                         │
│   1. Community proposes: "Buy 5 acres in Texas for $50,000"            │
│                              ↓                                          │
│   2. 67% vote passes (higher threshold for major purchases)            │
│                              ↓                                          │
│   3. Charity Protocol DAO LLC receives instruction from smart contract      │
│                              ↓                                          │
│   4. LLC purchases land with DAO treasury funds                        │
│                              ↓                                          │
│   5. Title recorded: "Charity Protocol DAO LLC"                             │
│                              ↓                                          │
│   6. Operating agreement says: "This land may NEVER be sold.           │
│      It is held in perpetuity for community housing."                  │
│                                                                         │
│   Result: DAO controls land, no individual can sell it                 │
└─────────────────────────────────────────────────────────────────────────┘

Key Protections

Question	Answer
Who "owns" the land?	The LLC owns it on paper
Who controls the LLC?	The DAO via smart contract votes
Can anyone sell it?	NO - operating agreement prohibits
Can founder take it?	NO - founder has no special rights
What if LLC dissolves?	Land transfers to designated land trust

Wyoming DAO LLC Details

Wyoming passed the DAO Supplement Act (2021) which allows:

DAOs to form as LLCs
Smart contracts to be part of operating agreement
Algorithmic governance to be legally binding
Members limited to governance rights (no liability)

This is the recommended approach for Charity Protocol land ownership.

📚 Legal Research Items (To Ponder Later)

Wyoming DAO LLC Law

Bill: Wyoming SF0038 (2021)
Statute: W.S. 17-31-101 through 17-31-116
Key provision: "A decentralized autonomous organization may define the rights and obligations of members through the smart contract"
Cost to form: ~~$100 filing fee + registered agent (~~$50/year)
First DAO LLC: The American CryptoFed DAO (2021)

Other States to Watch

State	Status	Notes
Tennessee	Passed 2022	Similar to Wyoming
Utah	Passed 2023	"Utah DAO Act"
Vermont	2018	BBLLC (Blockchain-Based LLC)
Marshall Islands	2022	Non-profit DAO structure
Colorado	Considering	Cooperative DAO structure

Legal Questions to Research

Tax treatment: Is the DAO LLC taxed as partnership or corporation?
Member liability: Are contributors liable for DAO actions?
Securities law: Does voting power count as a security?
Charitable status: Can a DAO LLC also be 501(c)(3)?
International: Can non-US people participate legally?

Useful Resources

a]16z Crypto: "Legal Frameworks for DAOs" (2021)
LexDAO: Open source legal templates for DAOs
Wyoming Secretary of State: DAO formation documents
OpenLaw: Smart contract legal agreements
Otonomos: DAO legal wrapper services

Community Land Trust Models to Study

Organization	Model	Location
Champlain Housing Trust	Largest CLT in US	Vermont
Oakland CLT	Urban housing	California
Dudley Street Neighborhood	Community-controlled	Boston
NYC Community Land Initiative	Multi-CLT network	New York

Questions for a Lawyer

Can a Wyoming DAO LLC purchase real estate in other states?
What happens if DAO members are anonymous (pseudonymous wallets)?
How do we handle property taxes with no individual owner?
Can the operating agreement truly be "unmodifiable"?
What's the liability if donated goods cause harm?

🔐 Critical Design: The Money Lockbox

"I need to figure out how when I start this, I cannot get into the money. No one can. It has to be spent by proposals."

This is THE core security design. If this fails, everything fails.

How The Lockbox Works

┌─────────────────────────────────────────────────────────────────────────┐
│                         SMART CONTRACT TREASURY                         │
│                                                                         │
│   USDC goes IN ────────────────────────────────────────> ✅ Always OK   │
│                                                                         │
│   USDC goes OUT ────> ONLY to pre-approved vendor addresses:            │
│                       • Amazon Payments: 0x123...                       │
│                       • Walmart Payments: 0x456...                      │
│                       • Costco Payments: 0x789...                       │
│                                                                         │
│   ❌ BLOCKED: Any transfer to non-vendor address                        │
│   ❌ BLOCKED: Founder wallet                                            │
│   ❌ BLOCKED: Any personal wallet                                       │
│   ❌ BLOCKED: Any address not on approved vendor list                   │
│                                                                         │
└─────────────────────────────────────────────────────────────────────────┘

Security Guarantees

Question	Answer
Can founder withdraw?	❌ NO - contract doesn't allow it
Can anyone withdraw to personal wallet?	❌ NO - only vendor addresses
Can hackers steal it?	Only if they hack the smart contract itself
What if Amazon's address changes?	Requires community vote to update
What about the 2% ops fee?	Goes to separate ops contract, also lockboxed

The Vendor Whitelist

Only these addresses can ever receive funds:

mapping(address => bool) public approvedVendors;

// Example vendors (would be real addresses)
approvedVendors[AMAZON_MERCHANT_SERVICES] = true;
approvedVendors[WALMART_CRYPTO_PAYMENTS] = true;
approvedVendors[COSTCO_BUSINESS] = true;

// To add new vendor: requires 67% community vote + 7-day delay

Adding New Vendors

Someone proposes adding a vendor (e.g., "Add Target")
14-day discussion period
67% approval threshold
7-day timelock after vote passes
Only then is vendor added

Why the delays? Gives community time to catch malicious additions.

No Escape Hatches

Intentionally, there is NO way to:

Upgrade the contract to add withdrawals
Move funds to a different contract
"Emergency" withdraw

Once deployed, the lockbox is permanent. This is a feature, not a bug.

Open Source & Audited

Smart contract code: Public on GitHub
Verified on Basescan
Professional audit before launch
Bug bounty program

🏗️ Technical Architecture

Current State: Mockup

doa-charity/
├── index.html      # Main page structure
├── style.css       # Core design system (dark theme, glassmorphism)
├── style-extra.css # Component styles (proposals, recipients, etc.)
├── app.js          # Interactive demo (voting, animations)
└── README.md       # This document

Future State: Full Implementation

opentax/
├── contracts/              # Smart contracts (Solidity)
│   ├── Treasury.sol        # Pool management
│   ├── Proposals.sol       # Proposal creation/voting
│   ├── Execution.sol       # Vendor API oracle calls
│   └── Registry.sol        # Verified recipients
│
├── frontend/               # Next.js or similar
│   ├── components/
│   ├── pages/
│   └── hooks/              # Web3 wallet connections
│
├── backend/                # API layer
│   ├── vendors/            # Amazon, Walmart API integrations
│   ├── oracles/            # Chainlink or custom oracles
│   └── ai/                 # Claude API for edge cases
│
└── docs/                   # Whitepaper, specs

Key Technical Components

Component	Technology	Purpose
Treasury	Solidity smart contract	Hold USDC, track contributions, release on vote
Voting	Solidity + frontend	Quadratic calculation, snapshot voting
Execution	Chainlink oracles	Call external APIs (Amazon, Walmart)
Identity	Proof of Humanity / ENS	Prevent Sybil attacks
Frontend	Next.js + wagmi	Web3 wallet connection, UI
Stablecoin	USDC on Base	Stable value, low fees

💰 Stablecoin Strategy

Why Stablecoins?

No volatility (critical for a treasury)
Easier mental model ($100 = $100)
Regulatory clarity (compared to other tokens)

Recommended: USDC on Base

Factor	Value
Transaction Fee	$0.001 - $0.01
Network	Base (Coinbase L2)
Backing	1:1 USD reserves, audited
Issuer	Circle (regulated)
Ecosystem	Growing fast, Coinbase integration

Alternatives Considered

Stablecoin	Network	Fees	Notes
USDC on Base	Base	~$0.007	⭐ Recommended
USDC on Arbitrum	Arbitrum	~$0.004	Good alternative
USDT on Tron	Tron	~$0.001	Cheapest, but Tron concerns
USDC on Solana	Solana	~$0.001	Fast, but Solana has had outages
PYUSD	Solana	~$0.001	PayPal's coin, new

❓ Open Questions & Future Work

Identity & Sybil Resistance

How to verify unique humans without friction?
Options: Worldcoin, Proof of Humanity, social vouching, government ID
Trade-off: Privacy vs. security

Vendor Integrations

Amazon API for direct ordering (possible via affiliate/business accounts?)
Walmart, Costco, direct suppliers
Need: Business relationships or oracle solutions

Services vs. Goods

Goods are easy (ship coats) — services are hard (pay rent, medical bills)
Possible: Escrow + proof of payment + verification
Need: More research on service-based proposals

Legal Structure

Is this a DAO? A nonprofit? Something new?
Tax implications for contributors?
Need: Legal advice

Scaling

Start local (Seattle) → Go global
How to maintain quality as recipient list grows?
Regional chapters with local knowledge?

Governance Evolution

Who can modify the smart contracts?
Upgrade mechanisms?
Emergency shutdown procedures?

🌐 Similar Projects & Differentiation

Existing Projects

Project	What It Does	How We're Different
Gitcoin	Quadratic funding for crypto projects	We focus on real-world causes, not crypto
Giveth	Charity donations with matching	We ship goods, not cash
Optimism RetroPGF	Retroactive funding for impact	We fund proactively, voting first
MolochDAO	Grants for Ethereum development	We're for normies, not devs
Boulder QF Pilot	City-run quadratic funding	We're decentralized, not government

Our Unique Position

"A Gitcoin for regular people, funding real-world causes, with automated trustless execution"

Key differentiators:

Goods, not cash — removes charity waste
Normie UX — not just for crypto natives
Auto-execution — no humans touch the money
Verified recipient registry — curated trust

🚀 Running the Mockup

Quick Start

Open index.html in a browser
That's it! It's a static mockup.

What You Can Do

Click Vote Yes/No buttons (votes update!)
Click Create New Proposal (modal opens)
Scroll through all sections
Watch treasury balance animate slightly

Files

File	Description
`index.html`	Main HTML structure
`style.css`	Design system: colors, typography, base components
`style-extra.css`	Component styles: proposals, recipients, chat
`app.js`	Demo interactivity: voting, rendering, animations

📝 Development Roadmap

Phase 1: Concept ✅

Define core concept
Research existing solutions
Choose stablecoin (USDC on Base)
Design mockup

Phase 2: MVP (Next)

Deploy treasury smart contract (testnet)
Basic proposal/voting system
Wallet connection (wagmi)
Manual execution (admin triggers orders)

Phase 3: Automation

Vendor API integrations
Oracle-based execution
Package tracking integration
Photo proof of delivery

Phase 4: Scale

Identity/Sybil solution
Mobile app
More vendors
Regional expansion

🤝 Contributing

This is an open concept. Ideas welcome!

Core Principles (Non-Negotiable)

Transparency — all transactions public
No plutocracy — diminishing returns on voting power
Goods over cash — maximize direct impact
Trustless execution — minimize human touchpoints

📞 Contact

This project is in early concept phase. Built with care by a human + Claude.

"Finally, a system I can trust with my donations." — Future user

License: Open source. Help people. Don't be evil.

Name		Name	Last commit message	Last commit date
Latest commit History 2 Commits
README.md		README.md
app.js		app.js
index.html		index.html
style-extra.css		style-extra.css
style.css		style.css

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