Public Interest Cryptocurrencies: In-depth Thematic Report

Introduction

Cryptocurrencies are often associated with speculation or investment. However, beyond financial motives, a growing number of blockchain-based projects aim to serve the public good. These so-called “public interest cryptocurrencies” are designed to address societal challenges such as climate change, poverty, financial exclusion, public goods underfunding, and democratic participation. Rather than pursuing profit accumulation, these projects seek to create equitable systems, promote civic engagement, or reward actions that contribute to global welfare.

This report analyzes the concept and necessity of public-interest-oriented cryptocurrencies and provides a comprehensive thematic analysis in four key domains:

1. Climate and Environmental Response
2. Welfare and Universal Basic Income (UBI)
3. Public Goods and Donation Infrastructure
4. Civic Participation and Governance

For each theme, we analyze representative case studies across the following dimensions:

• Project overview and design
• Real-world implementation and outcomes
• Philosophical and political foundations
• Technological uniqueness (blockchain use)
• Challenges and criticisms
• Potential societal impact
• Long-term viability and global applicability

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1. Climate and Environmental Response: The Case of SolarCoin

Project Overview and Design

SolarCoin is a representative cryptocurrency created to incentivize climate-positive behavior, specifically solar energy production. Launched in 2014 by the non-profit SolarCoin Foundation, the project functions like an air mileage program for solar power. For every 1 MWh (megawatt-hour) of verified solar electricity generated, the producer receives 1 SolarCoin (SLR). This structure provides an economic incentive to adopt renewable energy.

Technically, SolarCoin uses its own blockchain to record and verify transactions. It is recognized as one of the few cryptocurrencies aligned with ISO 20022, improving interoperability with global financial systems. The total supply of SolarCoin is vast, covering an estimated global solar energy potential of 97,500 TWh, aiming to support decades of future renewable generation.

Real-World Implementation and Outcomes

By early 2018, SolarCoin had distributed about 3.6 million tokens to solar producers across 54 countries. As of 2017, 10,000+ solar energy facilities from 23 countries had claimed SolarCoins, covering approximately 200 MW of production capacity. While the value of SolarCoin fluctuated (around $0.20 per coin at peak), adoption has been limited by low market value and recognition.

A notable milestone was a partnership with French electricity provider ekWateur, which accepted SolarCoin as payment—making it the first utility company to do so. Some crowdfunding and energy monitoring platforms also integrated SolarCoin as a reward mechanism. However, the project remains relatively niche, outside the top 200 cryptocurrencies by market capitalization.

Philosophical and Political Foundations

SolarCoin emerged from an environmentalist ethos and alternative economic philosophy. Co-founders Nick Gogerty and Joseph Zitoli proposed a new energy-backed currency (DeKo), where electricity replaces gold or debt as the reserve asset for currency issuance. This vision links monetary creation directly to climate-positive behavior.

Politically, SolarCoin operates through decentralized, voluntary participation. Rather than government-driven subsidies or carbon taxes, it introduces market-based incentives for renewable adoption. This reflects a techno-optimist approach, combining environmentalism and decentralized finance (DeFi).

Technological Uniqueness

Unlike traditional cryptocurrencies using proof-of-work (PoW), SolarCoin employs a “Proof-of-Solar” concept—rewarding real-world solar production. Producers submit verification documents (like energy certificates) to the SolarCoin Foundation, which then distributes coins. While this requires a semi-centralized validation, the process is transparent and stored on the blockchain.

SolarCoin initially ran on a fork of Litecoin but considered migrating to Ethereum or sidechains to improve integration and automation. Experiments with IoT devices and smart meters are ongoing to enable real-time, automated rewards.

Challenges and Criticisms

Key limitations include:

• Low economic incentive: At $0.10–0.20 per SLR, the reward per 1 MWh of solar generation is minimal, limiting user motivation.
• Verification complexity: Manual verification for small producers creates friction and scalability issues.
• Limited liquidity and usability: Few exchanges list SLR, and few vendors accept it.
• Slow ecosystem growth: Partnerships with energy sector stakeholders are crucial but have progressed slowly.

Potential Societal Impact

SolarCoin offers a model for rewarding eco-friendly behavior through market mechanisms. If adopted widely, it could serve as a private-sector complement (or alternative) to carbon credits and government subsidies. Moreover, linking digital currencies to real-world sustainability metrics may shift public perception of cryptocurrencies from speculative assets to instruments of social good.

Long-Term Viability and Global Applicability

SolarCoin’s success depends on ecosystem expansion and institutional adoption. Integration with smart metering, partnerships with national green subsidy programs, or use by carbon offset platforms could increase value and visibility. In developing regions, SolarCoin could incentivize small-scale renewable adoption. Despite its current niche status, the model inspires similar “green coins” and suggests a broader role for blockchain in environmental finance.

Key Insights – Environmental Crypto Sector

• Market-based incentives can promote eco-friendly behavior.
• Blockchain can enable transparent reward systems for sustainability actions.
• Adoption requires broader ecosystem support and liquidity.
• The concept is scalable, but success depends on institutional backing and user value perception.

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2. Welfare and Universal Basic Income: The Case of GoodDollar

Project Overview and Design

GoodDollar is a decentralized protocol that aims to deliver universal basic income (UBI) using blockchain technology. Launched in 2020 and backed by eToro founder Yoni Assia, GoodDollar distributes a digital currency (G$) daily to users worldwide, free of charge. Its model is built around decentralized finance (DeFi) principles and uses interest generated from crypto staking and lending to fund the UBI.

The protocol operates in two tiers: donors and recipients. Crypto holders deposit assets into DeFi protocols (like Aave or Compound), where interest is earned. That interest is converted into G$ tokens and distributed to users who claim daily UBI through the GoodDollar wallet. This approach creates a sustainable loop where capital generates value for the broader community.

Real-World Implementation and Outcomes

By 2023, GoodDollar had over 450,000 registered users from 180 countries and had distributed more than 400 million G$ tokens. It has created a consistent user base, especially in low-income regions such as sub-Saharan Africa, Southeast Asia, and Latin America, where traditional financial access is limited.

Users receive G$ daily and can exchange it within the GoodDollar community marketplace for goods and services or use it in partner apps. Although G$ has limited exchangeability on traditional crypto markets, it functions effectively within its ecosystem. The platform also provides educational content and tools for financial literacy, encouraging long-term engagement.

Philosophical and Political Foundations

GoodDollar is rooted in the belief that income inequality is a structural issue and that technology should be leveraged to address wealth gaps. Inspired by economic theories of basic income from figures like Thomas Paine and modern UBI advocates, the project promotes wealth redistribution not through taxation, but through voluntary participation and smart contract automation.

Politically, it reflects a techno-progressive vision—one where decentralized systems replace centralized welfare structures. The project sees blockchain as a democratizing tool for economic empowerment.

Technological Uniqueness

The protocol is built on Ethereum and operates across multiple blockchains (e.g., Fuse, Celo) to reduce gas costs and increase accessibility. G$ is minted through a smart contract system that links interest earnings from DeFi protocols to token issuance. The platform’s open-source design and transparency tools enable public audit and community governance.

Unlike other crypto projects that require technical know-how or capital, GoodDollar enables anyone with a smartphone and internet access to participate. Its low barrier to entry is a key differentiator.

Challenges and Criticisms

Some key concerns include:

• Limited economic value: G$ has low exchange value outside the ecosystem.
• Reliance on DeFi returns: Sustainability depends on interest rates and donor participation.
• Regulatory ambiguity: UBI via crypto is still in a gray legal area in many jurisdictions.
• Scalability risks: Onboarding millions of users may strain infrastructure and funding.

Potential Societal Impact

GoodDollar presents a novel method for addressing poverty and financial exclusion. By using decentralized incentives, it democratizes access to income and basic economic rights. The project also provides a testbed for broader UBI implementations, offering data and design insights for governments and NGOs.

Long-Term Viability and Global Applicability

If integrated with local economies, NGOs, or humanitarian aid platforms, GoodDollar could scale significantly. It offers a low-cost model for basic financial support, especially in regions with limited infrastructure. As DeFi matures and gains regulatory clarity, projects like GoodDollar may play a foundational role in digital social safety nets.

Key Insights – UBI Crypto Sector

• Blockchain enables new models of income distribution.
• DeFi can sustainably fund public-interest goals.
• Low-entry designs increase accessibility in underserved regions.
• Legal and technical challenges remain for mass adoption.

3. Public Goods and Donation Infrastructure: The Case of Gitcoin

Project Overview and Design

Gitcoin is a platform that funds open-source software and public goods using cryptocurrency-based mechanisms. Launched in 2017, it has since evolved into a key player in the decentralized funding ecosystem, especially through its innovation of “quadratic funding” — a matching system that amplifies small individual donations.

The core idea is to create an efficient market for public goods. Gitcoin enables developers and builders to receive community funding for their work, while contributors can amplify their impact through a matching pool sponsored by institutional donors (e.g., Ethereum Foundation, Optimism, ENS). The protocol operates on Ethereum and integrates web3-native governance through its DAO (GitcoinDAO).

Real-World Implementation and Outcomes

By 2024, Gitcoin had facilitated over $60 million in funding to open-source projects. Its “Gitcoin Grants” program runs in rounds, during which thousands of donors fund hundreds of community-selected projects. The quadratic matching mechanism ensures that projects with broader grassroots support receive larger matched amounts, promoting democratic resource allocation.

Gitcoin also helped fund infrastructure for Ethereum Layer 2 solutions, decentralized identity protocols, climate tech, journalism, and education. The impact extends beyond crypto: Gitcoin’s funding model has been adopted by advocacy and community groups outside the blockchain space.

Philosophical and Political Foundations

Gitcoin builds on the idea that digital public goods — such as open-source code — are underfunded because traditional markets undervalue them. Drawing from Elinor Ostrom’s theories on commons governance and Glen Weyl’s work on radical markets, Gitcoin positions itself as a new form of decentralized, permissionless philanthropy.

Its model reflects political pluralism and a strong democratic ethos: it prioritizes bottom-up resource allocation and values participation over hierarchy. Gitcoin’s slogan — “Fund What Matters” — underscores its public-choice foundation.

Technological Uniqueness

Gitcoin pioneered the blockchain implementation of quadratic funding (QF), a mechanism in which the total amount a project receives is not linear to individual donations but quadratic — giving greater weight to broadly supported projects. This is implemented via smart contracts and audited to ensure transparency.

Gitcoin has developed its own protocol layer (Allo Protocol) to allow communities to run their own funding rounds with QF or other mechanisms. It also supports Sybil resistance via identity protocols (like Gitcoin Passport) to prevent manipulation.

Challenges and Criticisms

Key concerns include:

• Gaming and Sybil attacks: Fake identities can manipulate donation counts unless identity verification is robust.
• Donor fatigue: Sustainability of matching funds depends on institutional donor commitment.
• Coordination complexity: Managing fair, global funding rounds requires community governance maturity.
• Adoption beyond crypto: Translating the model to non-crypto sectors remains an open challenge.

Potential Societal Impact

Gitcoin offers a scalable, transparent, and participatory model for public goods funding. If adopted by NGOs, universities, or governments, it could improve allocation efficiency for research, education, or social services. The protocol also supports bottom-up innovation ecosystems, enabling more equitable access to funding.

Long-Term Viability and Global Applicability

Gitcoin’s modular design allows localization and replication across sectors. Integration with real-world identity verification could enable broader adoption. As digital infrastructure becomes more central to public life, Gitcoin’s model may serve as a blueprint for global digital philanthropy.

Key Insights – Public Goods Crypto Sector

• Blockchain enables fairer, decentralized mechanisms for funding public goods.
• Quadratic funding democratizes influence and boosts grassroots projects.
• Identity verification and governance maturity are key to sustainable adoption.
• The model is extensible to sectors beyond crypto with the right interfaces.

4. Civic Participation and Governance: The Case of Democracy Earth

Project Overview and Design

Democracy Earth is a blockchain-based initiative focused on reimagining democracy in the digital age. Founded by political theorist and entrepreneur Santiago Siri, the project aims to create a borderless, censorship-resistant platform for digital voting, governance, and citizen participation.

At the core of Democracy Earth is the Sovereign protocol, which provides tools for verifiable and transparent decision-making using blockchain technology. It emphasizes liquid democracy — a model that allows voters to either vote directly or delegate their votes to trusted representatives. The platform also explores identity verification, voting rights as tokens, and decentralized governance structures.

Real-World Implementation and Outcomes

Democracy Earth has participated in pilots and experiments across several domains:

• Worked with the government of Colombia on a peace referendum prototype.
• Ran voting experiments with the Zapatista movement in Mexico.
• Collaborated with the United Nations and NGOs on global democratic access initiatives.

Although the project hasn’t yet reached mass adoption, it has played an influential role in the digital democracy discourse and has inspired elements of governance design in DAOs and decentralized platforms.

Philosophical and Political Foundations

Democracy Earth is grounded in the idea that traditional representative democracy is outdated in the digital era. It envisions a future where governance is decentralized, inclusive, and globally accessible — not bound by nation-states.

It critiques centralized power structures, electoral corruption, and voter disenfranchisement. Its vision aligns with techno-liberalism, crypto-anarchism, and post-national political theory. The goal is to restore democratic legitimacy using trustless, verifiable systems.

Technological Uniqueness

The Sovereign protocol is built with a strong emphasis on cryptographic verification, transparency, and open-source development. Notable features include:

• Tokenized voting rights that allow fractional or delegated representation.
• Quadratic voting mechanisms that allow users to express preference intensity.
• Proof-of-identity systems to mitigate Sybil attacks.
• Tamper-proof audit trails using blockchain.

The project explores new governance primitives, such as continuous democracy and always-on voting systems.

Challenges and Criticisms

Democracy Earth faces several practical hurdles:

• Identity verification: Global, inclusive identity systems are hard to implement.
• Security and coercion risks: Remote voting can be susceptible to manipulation.
• Adoption barriers: Traditional political institutions are resistant to blockchain-based governance.
• Complexity: The model requires high digital literacy and trust in cryptographic systems.

Potential Societal Impact

If scaled, Democracy Earth could offer secure, transparent, and participatory platforms for civic decision-making. It may enhance citizen agency, reduce corruption, and enable new forms of transnational governance. The protocol has potential use cases in NGOs, DAOs, academic governance, and corporate stakeholder engagement.

Long-Term Viability and Global Applicability

For broader adoption, Democracy Earth would need integration with digital identity infrastructure, user-friendly interfaces, and collaboration with political and civil society organizations. As more institutions explore digital governance, components of the Democracy Earth model could be modularly applied.

Key Insights – Governance Crypto Sector

• Blockchain enables transparent, tamper-proof voting systems.
• Decentralized governance models can enhance political participation.
• Identity and security challenges must be addressed for real-world use.
• Governance tools developed for crypto communities may influence mainstream political systems.

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Conclusion: A New Paradigm for Public-Interest Cryptocurrencies

The four case studies in this report show that cryptocurrencies are capable of more than financial speculation. When designed with intention and aligned with social values, blockchain-based projects can incentivize pro-social behavior, fund public goods, and reimagine civic engagement.

Despite limitations — from economic sustainability to regulatory uncertainty — the public-interest crypto sector is growing. Each model explored here offers a glimpse into a future where decentralized technologies contribute to equity, inclusion, and collective problem-solving.

Future development should focus on:

• Improving interoperability with existing systems.
• Enhancing identity and security protocols.
• Designing for accessibility and user experience.
• Building partnerships with public institutions and civil society.

Public-interest cryptocurrencies may not replace traditional systems, but they can complement and challenge them, offering alternatives shaped by community participation and technological innovation.

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