Traditional microfinance institutions (MFIs) face several challenges and problems, including: High operating costs: MFIs often have high operating costs due to the need for physical branches, staff, and paperwork. This can result in high interest rates on loans and limited access to financial services for underbanked communities. Lack of transparency: MFIs may not have transparent systems for tracking and recording transactions, which can result in fraud and corruption. Limited reach: MFIs may only be available in certain geographic regions, limiting access to financial services for those in remote or underdeveloped areas. Dependence on intermediaries: MFIs often rely on intermediaries, such as banks, to distribute loans, which can increase costs and limit access to funding. Inefficient processes: Traditional MFI lending processes can be slow and inefficient, making it difficult for borrowers to access funds quickly when they need them. Unsustainable business model: MFIs may have limited revenue streams, making it difficult for them to sustain their operations over the long-term.

What it does

Microfinance DAO (Decentralized Autonomous Organization) is a decentralized platform for providing microfinance services, such as microloans and savings products, to individuals and small businesses who may not have access to traditional financial services.

The platform operates on blockchain technology, which provides a secure and transparent way of recording and tracking transactions. This helps to minimize the risk of fraud and ensures that funds are distributed in a fair and efficient manner.

In a Microfinance DAO, the governance and decision-making power is decentralized and in the hands of the community members who hold the platform's token. These community members can vote on proposals to make changes to the platform, and they also receive a share of the profits generated by the platform.

The use of blockchain technology in a Microfinance DAO provides several benefits, such as lower costs, faster and more efficient transactions, and greater access to financial services for people in underbanked communities. Additionally, since the platform is decentralized, it operates without the need for intermediaries, such as banks or financial institutions, which further reduces costs and increases efficiency.

Overall, Microfinance DAO provides a new way for people and small businesses to access financial services, helping to promote financial inclusion and drive economic growth in underbanked communities.

In our DAO dashboard people will be asked to connect to their wallet. After connecting if they have membership NFT then they will be granted access to DAO Member Page. If the person doesn’t hold membership NFT then that person will be asked to mint one. Membership NFT is required to access DAO and revive the token airdrop. These Tokens can be used to vote on proposals. The web app is what I'll be calling our "DAO Dashboard". It's where our new members can join and it allows existing members to see what the DAO is up to.

How we built it

We have used React Hooks to add Wallet Connect to our Web App. We have used Third Web’s SDK to Deploy our NFT Bundle (ERC-1155). Added NFT Metadata using scripts to the existing ERC-1155 MicroFinance DAO NFT. Initialized Air Drop Smart Contract using Solidity and Script. Deployed Governance Token (ERC-20) using Script. Air Dropped Token to DAO Members using Script. Deployed Governance Token and Build the Treasury using Script.

Challenges we ran into

We were failing to airdrop tokens using Quicknode url as it was exceeding limit so we have switched to Alchemy and it worked.

Accomplishments that we're proud of

Deployed my Own NFT bundle. Deployed my own ERC-20 contract. Deployed users in my DAO token to vote on proposals.

What we learned

I have learned to use Third Web's SDK to Deploy our contracts on-chain easily with a single command

What's next for MicroFinanceDAO

We will be adding Lending and Borrowing Feature in the future to complete our DAO

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