A new ecosystem of smart, reliable, transparent, and measurable humanitarianism, with better incentives and governance, powered by the blockchain & a global community.
There are two Tokens — CSRi & CSRm — which, together will resolve the five industry-wide issues.
Why are there two tokens?
CSRi and CSRm serve different purposes, but interact in synergy to take Inpactor to a whole new level, and solve the industry issues of the humanitarian ecosystem.
CSRi
The value of CSRi must remain stable at all times. Hence, CSRi functions independently inside Inpactor and cannot be traded. The funds are intended for impact creation, therefore cannot be exposed to the extreme volatility inherent to today’s token market.
CSRi allows for more financial transparency in the funding process using distributed ledger technology, accurate reporting using Proof of Impact (PoI) — whereby volunteers vote on a Cause’s impact report — and reliable collaborations using smart contracts to complement the Project implementation.
CSRm
As an incentive for creating social impact, Brands receive CSRm each time they fund a project. This CSRm incentive can be spent inside Inpactor’s advertising platform, creating measurable ROI on their CSR initiatives, or, like any other token, it can be publicly traded, or used to accrue fixed interest using Proof of Stake.
CSRm also introduces a Distributed Governance Framework. This framework gives token holders voting power. This means that the community decides how this platform should evolve, which Projects get highlighted, and which social issues Brands should be solving.
The following section will provide an in-depth explanation of the two tokens.
An introduction to CSRi
CSRi is the usage token inside Inpactor. It is created when receiving funds in fiat from Brands, and it is destroyed when returned to us in exchange for fiat — its sole purpose is to facilitate transparency, reliability, and accuracy in the ecosystem. It creates transparency in spending using Distributed Ledger Technology (DLT), solves reliability using smart contracts, and ensures Project delivery using Proof of Impact (PoI). We will be using Hyperledger from the Linux Foundation and hosted on IBM’s blockchain platform for secure implementation of CSRi into Inpactor. Any user of Inpactor is allowed to run a peer node to help create a more distributed ledger.
CSRi comprises three key attributes:
CSRi is a usage token and is used only within Inpactor
CSRi is an impact-only token (hence the ‘i’ in CSRi). It is only created by Inpactor when a Brand funds a Project by converting the funding amount in fiat to CSRi. When the Project reaches completion, CSRi is destroyed.
CSRi acts as a stable token. It functions within the platform without suffering from the extreme volatility inherent to today’s token market.
CSRi Use cases
The purpose of CSRi is to flush three industry-wide problems out of the system by leveraging the possibilities of blockchain within Inpactor.
Increased transparency
Before we dive into how CSRi creates increased transparency, it is important to understand Incitement’s perspective on the topic. Transparency is crucial, but it is not the end goal itself. Rather, it is a means to an end. Incitement’s end goal is to help Brands solve societal issues, and transparency is just one of the tools to achieve that.
Why is this important?
It is utopian to think that there is such a thing as 100% transparency, even with blockchain technology. There are several companies built around the premise of what is called a ‘hypertrackable’ token. Although it sounds useful to track your donation up until the point where it gets converted into fiat, this is exactly where the culprit lies.
An estimated four billion people today have no Internet access , and it will take decades before they do. Due to this lack of infrastructure, we rely on the Cause to convert our donations into value for the beneficiary, which means there’s really not that much to be ‘hypertracked’. Your donation will end up in the wallet of the Cause, which they will convert into fiat, and that’s where transparency ends. Whether your donation makes a direct impact in someone’s life or not remains at the sole discretion of the Cause.
The importance of transparency is most prevalent during two stages of the Project cycle. The way CSRi solves the issue is different in each stage.
Brand funds a Project
Solving this part is straight forward considering that transparency is an inherent property of the blockchain. All we have to do is convert a Brand’s funds into CSRi and use a smart contract to lock these funds into the Project.
Cause incurs Project expenses
Solving this part, as we explained, is more complicated because there is little to no transparency after a Cause exchanges the funds to fiat. That’s why Inpactor will bypass the Cause for certain Project expenses, and distribute CSRi directly to Vendors who have been preselected during the Project creation stage — the Cause will only receive their base fee for project management; a cost centre which in itself will shrink now that the Cause has less handling and administration.
Here’s how this works:
When a Project is created, the Cause needs to submit a detailed budget breakdown. Inpactor will query the public budget breakdown, analyse the goods and/or services required, their quantity and allocated budget, and publish these as POs into its Vendor network. Vendors can apply to fulfill the POs. This way, what is often a large chunk of the funds can circumvent the Cause, alleviating the Cause from unnecessary administration, and creating more transparency by changing the procurement process of the Cause. We reallocate the flow of money between Cause and Vendor so that the Vendor no longer receives the funds from the Cause, but rather directly from the Brand using smart contracts.
Guaranteed reliability
Inpactor solves this by locking up the Project’s key parameters into a smart contract once consensus has been achieved upfront between all stakeholders. This might sound complicated, but it’s really not. Here’s an example to illustrate this:
A Cause creates and publishes a Project
The Brand and Volunteers reviews the Project
All are in agreement about the Project details and approve the Project OR amendments are made to the Project details until there is agreement and approve the Project
Out of this, a smart contract is generated which is published into the network, and is responsible for fund distribution throughout the Project cycle based on the Project parameters stakeholders have agreed upon
This way the Cause won’t have to handle those costs anymore, alleviating further administrative work, ensuring correct prioritisation and disbursement of funds, and creating further reliability. Plus, we can guarantee that the funds of the Brand will be distributed to its preset recipients since smart contracts are immutable in nature.
We are currently in talks with selected e-commerce websites to adopt this feature for their Vendors.
Accurate Impact Reporting
Once a Project is completed, the Cause will produce an Impact Report as part of their deliverables. This is a standard requirement of each Project. This Impact Report will be published on the Channel of the Brand and Cause, and on the profile of the Volunteer. It is important that this report is accurate and true, and does not misrepresent results. Inpactor already provides a reporting tool, however it is difficult to establish whether what is being reported is actually true. This is where we implement Proof of Impact (PoI).
PoI is a voting system, programmed into the smart contract, allowing each Volunteer in the Project to validate the submitted Impact Report by casting a simple ‘Yes’ or ‘No’ vote. This allows for distributed consensus regarding the accuracy of the reporting.
It is important for a Cause to provide an accurate report because it is directly tied to their performance fees. While the Project base fee is released upfront, the performance fees only get released if a positive majority vote is casted to confirm accuracy of the Impact Report. If the Impact Report is not accurate, the balance performance fees are refunded to the Brand. To ensure that Volunteers vote on the PoI, their reward is only released after their vote has been registered.
Limitations
CSRi solves three of the five industry-wide problems that we identified through our years of experience in this industry. However, that leaves two issues unresolved:
T̶r̶a̶n̶s̶p̶a̶r̶e̶n̶c̶y̶
R̶e̶l̶i̶a̶b̶i̶l̶i̶t̶y̶
R̶e̶p̶o̶r̶t̶i̶n̶g̶
ROI on CSR
Governance
In the next section, we are introducing CSRm to solve the remaining two.
If you want to learn more about Incitement, please visit https://www.theincitement.com
An introduction to CSRm
The CSRm token is Inpactor’s work token. It allows for the creation of a governance system, the creation of ROI measurements of CSR activities, added platform benefits and features for token holders, and helps attract contributors because the token is tradable.
The key reasons why we need CSRm in addition to CSRi are as follows:
CSRi cannot solve the ROI on CSR and governance issues because of its fixed value, has unlimited supply, and only temporarily exists to facilitate more reliable impact creation.
CSRi’s stable characteristics cannot be sacrificed by exposing it to the current extreme market volatility.
Incitement needs to attract funds to develop the platform and tokens to fix the humanitarian system, and we need to have a token that can increase in value to create value for contributors and have a model that will make the ecosystem self-sustaining.
In the business of CSR the customer is a for-profit organisation, hence their incentive should be of financial nature to peak their motivation.
CSRm comprises four key attributes:
CSRm is a work token and can be used both inside and outside of Inpactor
CSRm is tradable on the market (hence the ‘m’ in CSRm)
CSRm uses Proof of Stake (PoS) to solve the ROI on CSR problem, and create value for contributors
Provides contributors in the Token Sale voting rights through its Governance Framework (GF)
CSRm use cases
CSRm solves the two remaining industry problems that could not be solved by CSRi alone — ROI on CSR and governance — but also allows for other important use cases, i.e. Proof of Stake (PoS), Brand incentives and Inpactor use.
Proof of Stake (PoS)
CSRm will make use of a Proof of Stake (PoS) mechanism which gives holders of CSRm the option to stake their CSRm, generating ROI. The PoS reward will be a percentage of the PoS Reserve. This ensures that early adopters of CRSm get rewarded accordingly as the rewards degrade over time. Contributors can earn up to 7% ROI when staking their tokens for the maximum term of 30 days. Simply put, holders of CSRm can earn extra tokens just by holding CSRm for a period of time in the (PoS) system.
To start staking, you need at least 2,286 of CSRm. This has to be locked for either 10, 20 or 30 days. You will then receive a percentage of our PoS Reserve as a reward. The amount of tokens you will earn will gradually degrade until the minimum reward is reached. Please see the Staking ROI table below for the estimated ROI earnings over time. On our CSR Token website, you can use our ROI calculator to give more accurate and up-to-date simulations.
A maximum of 25,000 stakes can be done on a monthly basis. If this threshold is reached during a single month, one will have to wait for the 1st of the next month to stake again. This is to ensure that our PoS reserve will last until the implementation of the Incitement blockchain and avoid huge spikes of the circulating supply. The Incitement blockchain is scheduled to launch in Q1 2020.
Staking ROI table
Stakes are made in multiples of 2,286 CSRm where every stake of 2,286 counts as one stake transaction. The current stake transaction number can be found on the on the CSR Token website.
Measurable ROI on CSR
Revenue attribution is complex. Even for sales and marketing activities, it is often hard to show exactly what the source of the revenue was. The topic is so complex that Google dedicated an entire study to it, called ZMOT. You can imagine it’s an almost impossible task to show how CSR activities contribute back to a Brand’s bottom line. CSRm presents an elegant solution to this issue; not only does it provide a measurable return on CSR activities, but by doing so, it also drives CSRm holder value.
There are three ways a Brand can receive CSRm. First, Brands receive CSRm as a reward for platform participation. Whenever a Brand funds a Project, in return, the Brand receives a reward in CSRm. In other words, there is a financial incentive for creating social impact.
The Brand can choose to use these funds in a variety of ways within the platform, all of which will create measurable return to their Brand value or bottom line income. Below is how a Brand can use their earned CSRm:
Proof of Stake
If a Brand accumulates 2,286 of CSRm earnings or more, it can opt to stake its CSRm just like any CSRm holder can and accrue profits.
* This feature is also available for Causes and Volunteers
Advertising power
The advertising platform within Inpactor will accept both fiat currency and CSRm to bid on advertising space. However, certain features Brands can only unlock when purchased with CSRm, such as boosting adverts for higher placements, increased reach, auction insights, enhanced reporting, and more. The eyeballs, leads, and sales that are generated from these ad campaigns can be directly attributed as ROI on CSR.
* This feature is also available for Causes
Premium platform features
Certain premium features can be purchased with both fiat currency and CSRm. Not only do Brands receive a discount on premium features bought using CSRm, these premium features also allow them to more effectively generate Brand exposure, which, in turn, can add to the Brand’s bottom line sales.
* This feature is also available for Causes
Secondly, Brands have the option to host their own VIP store inside the Vendor network which accepts CSRm, so that they can sell their goods and/or services to anyone who owns CSRm.
Thirdly, it can be bought on an Exchange, but of course profits made by simply buying CSRm on the market cannot be attributed as ROI on CSR.
Of course, a Brand can also choose to withdraw its CSRm from Inpactor, and trade it on the market, in which case they could grow this contribution themselves.
Governance Framework (GF)
We feel that contributors should not just get a return on their contribution through our PoS feature, but should also be given the opportunity to have a say in the strategic direction of Incitement. For this we envision the Distributed Governance Framework (DGF). However until our own blockchain is launched, the initial solution will run on an ERC20 token on the Ethereum blockchain. This will be reduced to a Governance Framework (GF) with voting only allowed for contributors who bought CSRm during the Community Sale and Crowdsale. This gives early contributors in the PoS direct governance over key decisions that will be put up for vote.
In our initial blockchain implementation, only the addresses that were used during the Community Sale and Crowdsale will have voting power. These accounts have the option to call the mintVote function. The amount of CSRm in the wallet will decide how many votes are cast — votesCast = balanceOf(Voter) / 2286. Only full votes count, so if a user has 4,570 in their account it would be just one vote. Two votes would be a minimal of 4,572 (2,286 x 2 = 4,572). We make this optional for our Token Sale contributors as the gas used for the mintVote function will be higher than the mint function.
Limitations
CSRm solves one more of the five industry-wide problems. It creates ROI for CSR activities, however only partially solves the issue of Governance. This leaves one issue unresolved:
T̶r̶a̶n̶s̶p̶a̶r̶e̶n̶c̶y̶
R̶e̶l̶i̶a̶b̶i̶l̶i̶t̶y̶
R̶e̶p̶o̶r̶t̶i̶n̶g̶
R̶O̶I̶ ̶o̶n̶ ̶C̶S̶R̶
Governance
In the next section we are introducing the Incitement Blockchain to solve the remaining issue.
Incitement Blockchain
For long term sustainability and scalability, minimising costs, and implementation of the Distributed Governance Framework (DGF) we will need to launch our own blockchain. We currently have this planned for launch in Q1 2020. This blockchain will have similar features as the CSRm, but will be self-sustainable and allow more features like staking pools and the DGF. As the technology might advance over the next two years, we will give regular updates on the development progress on our blog (blog.theincitement.com).
Purpose
The purpose of Incitement’s own blockchain will be to enable the Distributed Governance Framework (DGF) and have a self-sustainable Proof of Stake (PoS). The DGF will work simultaneously with the PoS.
How it works
CSRm holders that choose to stake their tokens will buy a ticket in the PoS system.
Incitement will carry out votes on decisions regarding the direction of Incitement and its products, with a focus on how Incitement addresses pressing societal issues. The holder of this ticket can vote either ‘Yes’, ‘No’, or ‘Abstain’.
Every time a block of stakes are mined, a portion of all the tickets will be randomly selected from the staking pool. If your ticket gets chosen, your vote will appear on the blockchain.
At the end of your stake term, you will receive your stake back plus the stake reward as usual and regardless of whether your vote was chosen or not.
Instead of giving voting rights to the Community Sale and Crowdsale participants, the DGF allows anyone who stakes their CSRm to be able to have a say. This allows for a more mainstream audience to vote as the platform grows and gains traction, thus distributing the governance.
How CSR Tokens are integrated into Inpactor
The Inpactor + CSR Tokens swimlane diagram provides a visual representation of how CSRi lives inside Inpactor. By integrating smart contracts and distributed Ledger Technology (DLT) into Inpactor the ecosystem is upgraded to deliver even more transparency, reliability, and accuracy of reports.
Since CSRi is only used within Inpactor, the swimlane also displays the flow of when CSRi is created and destroyed. The only way for CSRi to exit the platform is by converting it into fiat or CSRm. This ensures that CSRi is exclusively used for the creation of social impact.
As shown in the swimlane, CSRi integrates every stakeholder involved in the process of a social project from start to finish. The use of CSRi involves Inpactor as a processor for fund conversions, creator of smart contracts, and enabler of DLT. Inpactor will also offer optional Project Auditing services to Causes and Brands review, advise, and mitigate risks throughout a Project cycle.
Vendors are also included in the ecosystem as a means to create more transparency and reliability in how funds are spent by distributing funds directly to them using smart contracts, instead of having to go through the Cause first. This also enables Causes to improve efficiency and reduce mismanagement of procuring goods and/or services. Vendors will use Inpactor as another sales channel and compete for POs.
Despite adding many steps, the framework of steps for the Brand, Cause, and Volunteer is predominantly unaffected. Brands still provide funds in fiat, and all the conversion happens seamlessly within the platform. This prevents a steep learning curve for Brands, and allows them to use CSRi in the platform while complying with their internal financial policies and Vendor registration processes. The same applies for the Cause and Volunteer. Sending, receiving and converting CSRi is all done with the click of a button in a user-friendly UI/UX. To ensure smooth onboarding, Inpactor will only very slowly introduce features that add complexity.
The additional steps for each phases are explained below, highlighting the key differences in how the tokens are integrated into the platform.
Recruitment phase
Vendors are included in the ecosystem and will receive POs when a Project is published, bid on the PO tender, and Causes will approve the best bid.
The Project Audit is a paid option by Inpactor and includes reviewing the Project details to check for feasibility, Project cycle reviews, and helping the Brand and Cause consolidate their requirements or concerns.
Funding phase
Brands no longer deposit funds to Causes. Instead, the deposited fiat funds will be converted to CSRi tokens of equivalent value by Inpactor (1CSRi:1USD), and kept in escrow. The CSRi funds are sent to initiate the smart contract and execute all transactions as per the Project parameters.
Causes will receive their CSRi Project base fee, which will cover all minimal operational costs for the Project. They can opt to convert it to fiat through Inpactor for distribution.
Approved Vendors will also receive CSRi for the PO.
Execution phase
When payment is received, the Vendor will deliver the goods and/or services as per the PO. The Cause will confirm the Delivery Order (DO) upon receiving the goods and/or services and proceed to making any necessary preparations, automating their procurement processes. Vendors will then be able to convert their CSRi to fiat.
For any CSRi sent for conversion, Inpactor will convert them to fiat, destroy those CSRi tokens, and send the respective parties their fiat.
Completion phase
The Impact Report now includes the PoI targets that were determined in the Project details. The Cause will publish the impact measurement data collected during the Project using the Hourglass methodology.
When the Impact Report is published, Volunteers will be prompted to vote ‘Yes’ or ‘No’ on the PoI to verify the claimed impact created from the Project. Volunteers will receive their CSRi incentives after voting.
If the PoI receives a majority ‘No’ vote, the impact claimed is not validated. The Cause will not receive their CSRi performance fees as per the Project budget. The smart contract will refund the CSRi balance of the Project performance fees into the Brand’s account.
If the PoI receives a majority ‘Yes’ vote, that means there is consensus that the impact reported is valid, and the CSRi performance fees will be sent to the Cause.
Inpactor will send CSRm incentives to the Brand as a reward for funding a Project.
Any CSRi received can be converted into fiat (where the CSRi is again destroyed after conversion), or into CSRm through Inpactor.
CSRm can be used in the following ways;
Within our Vendor network on their goods and/or services, but only with Vendors accepting payments in CSRm
With Inpactor on premium features
With Inpactor on the advertising platform (for Brands and Causes only)
Stake CSRm using Proof of Stake (PoS) to accrue fixed interest
Deposit CSRm to an exchange platform
If you want to learn more about Inpactor and CSR Tokens, please visit https://csr.inpactor.com
If you want to learn more about Incitement, please visit https://www.theincitement.com
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