How is Ukraine raising funds for the war against Russia with digital currencies? From DAO to NFT



Recent reports indicate that significant amounts of digital assistance have been provided to Ukrainian governmental and non-governmental organizations during the Russia-Ukraine conflict. Some of these donations are in the form of bitcoin, atrium and tetra and, of course, some of them are related to decentralized organizations (DAO) and non-recurring tokens (NFT).

According to TheVerge, the latest statistics show that NGOs supporting the Ukrainian military have received more than $ 12 million in digital currency funding since the start of the war with Russia on February 24. During this period, several decentralized organizations were established in support of Ukraine. A number of incomparable tokens have been sold to help the country, and last night Ukraine’s official Twitter page announced it would accept Bitcoin, Atrium and Tetra for fundraising.

Such donations are usually made using older methods, such as bank transactions. In Ukraine, however, digital currencies have emerged as a quick and easy way to manage donations. In the midst of the war between Russia and Ukraine, it is not just the supply of digital currencies that is happening, and as it turns out, people in this country are also in high demand to convert their assets into digital currencies; On the day of the clashes, the price of Tetra in one of the exchange offices of this country reached a peak of 1145 dollars, which is unprecedented.

What is the middle of the digital currency in Ukraine?

How is Ukraine raising funds for the war against Russia with digital currencies?  From DAO to NFT

“It is perfectly normal to physically save dollars in Ukraine,” said Ilia Polosukhin, co-founder of Ukraine’s NEAR Protocol currency exchange project, one of Atrium’s major competitors. “People in this country do not trust the national currency, especially the banks. Polosukhin, whose family is based in Kharkiv, one of the main conflict zones, says that’s why digital currencies are so popular in Ukraine.

Ukraine is best known for its talent in technology. More than 200,000 people in Ukraine have technology-related occupations, and the country’s IT business was valued at $ 6.8 billion last year. Ukrainian authorities have officially legalized bitcoin and digital currencies by 2021. The plan includes regulating digital currencies and protecting Ukrainian citizens from fraud. Previously, the legal status of digital currencies in Ukraine was in a state of uncertainty, and although people could work in this sector, the transactions of Ukrainian exchange offices and institutions did not have a clear legal status.

In the Global Digital Acceptance Index, presented by China’s Chainalysis, Ukraine ranks lower than Vietnam, India and Pakistan, with about $ 8 billion in digital currency passing through the country each year.

Alexander Bornyakov, Deputy Minister of Digital Transformation, said:

Our big goal is to become one of the best countries for companies working in the field of digital currency.

He co-founded the Nir Protocol in Ukraine last year and said he was very surprised by the spread of digital currencies among its citizens, even those who do not work on blockchain projects. He said that Tetra is very popular among the people of Ukraine, and the reason is that people in this country are accustomed to saving dollars as a means of maintaining the value of their capital. Another reason for the popularity of digital currencies in the country is the limited investment opportunities in Ukraine, Polosokhin said. In fact, with the exception of real estate, “the only investment option available to the public is digital currency.”

This partly justifies the support of members of the digital currency community for the Ukrainian people during the war with Russia. Some Western officials are now worried that Russian companies will continue to use digital currencies to circumvent sanctions, while Russian officials themselves have taken steps to ban or restrict digital currencies in the country. Some Russian officials believe this will benefit the digital ruble, Russia’s national digital currency.

Now, as Ukraine’s central bank escalates the conflict by stopping electronic money transfers and restricting ATM withdrawals, digital currencies, along with the dollar, gold and silver, have become a means of transferring funds.

DAO and NFT; Contributions that received little attention

How is Ukraine raising funds for the war against Russia with digital currencies?  From DAO to NFT

As part of the conflict, part of the global digital currency community has declared its opposition to the war and its support for Ukraine. Vitalik Butrin, the creator of the digital currency Atrium, tweeted a few days ago that the war was a “criminal” war against the people of both countries, ending his message with the phrase “pride in Ukraine.” He later republished a tweet from the Unchain Fund. The project is aimed at raising humanitarian aid for Ukraine. The funds deposited in the Anchin Fund can be withdrawn in the form of multiple signatures with the approval of 9 people, one of whom is Polosokhin, co-founder of Nirprotkel.

In addition to Polosukhin, a Russian opposition group to Putin’s government, in cooperation with Trippy Labs and PleasrDAO, has launched a decentralized organization called UkraineDAO, which they say is “out of power.” “Use Web 3.0 and the digital currency community to raise funds.” It should be noted that Vitalik Butrin also presented the Ukrainian Tao on Twitter as one way to help people in this country. RELIF (RELI3F) is also one of the projects launched by an artist working in the field of NFT in support of the people of Ukraine.In addition, the digital currency exchange “FTX” said it would provide $ 25 financial assistance to all its Ukrainian consumers.

Yev Muchnik, a Ukrainian lawyer who has lived in the United States since 1988, is working with PieFi on another non-partisan organization called Ukraine United DAO.

He says:

Everyone unites in some way to find a way to help. This again gives you hope for the abilities of people, community and technology.

One of the purposes of this Tao is to create an interconnected and peer-to-peer network to keep users connected to the Internet; So even if centralized ISPs fail, consumers will have access to the Internet.

Read also: What is DAO? Getting acquainted with the best projects of decentralized self-government

“This missing link is looking to find out what people need,” Muhnik said. He believes that the Chinese bloc will enable us to ensure that financial aid to Ukraine goes where it needs to go. Mochink understands that people are now having trouble withdrawing money from their bank accounts and are looking for alternative ways to transfer money.

The co-founder of Nir Protocol is now focusing on supporting people in need; Whether through digital currency or other methods. “It’s easy to send digital currency to one person,” he said, “but if electricity and the Internet go out, people don’t have to have easy access to their digital currency.” Some reports show that only mobile operators operate in the Kharkiv region, and Polosukhin said it was unclear when access would be cut off, but for those facing the problem, using cash would be the best option. .

The post How Ukraine raises funds for the war against Russia with digital currencies? From DAO to NFT first appeared in Digital Currency.

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