As the use of blockchain technology is continuously increasing to support real-world use cases, the benefits for fundraising and philanthropy are beyond doubt. In fact, the most beneficial features of blockchain are its enhanced security, increased transparency, and instant traceability. We value such qualities and see them as great advantages, however, for us at Switzerland for UNHCR, adopting the Cardano blockchain is first and foremost a new and innovative way of helping raise funds using staking to support people forced to flee.
The opportunity of a stake pool generating rewards enables an even larger community to help make a difference and deliver lifesaving assistance to those most in need. It is a great way of continuously generating critical resources which will then go towards UNHCR’s operations in the field and its innovation programmes. Individuals around the world are able to delegate their funds (ada) and use blockchain for a good cause.
What is staking ?
Staking is the process of delegating digital assets to a stakepool to support the operations of the blockchain. Digital currency (in this case ada) holders delegate the stake associated with their assets to a stakepool. Stakepool rewards are typically given to both stake pool operators and stake delegators as an incentive to participate in the network. However, for the purpose of staking to raise funds, all the stake pool rewards will be distributed to Switzerland for UNHCR on a 5-day basis (according to the following policy), in way of donations, to support forcibly displaced people.
• Donate rewards without impacting your digital assets
• Increased transparency and accountability
• No locking period and possibility to withdraw funds from the pool at any time
• Alternative way to donate
Follow the 4 steps below to stake your digital asset (ada). Once you’ve completed step 4, your ada rewards will be donated to Switzerland for UNHCR to support refugee missions.
If you are currently an ada holder, you can simply delegate your stake through supported wallets (Flint, Yoroi, Nami, Eternal, Daedalus) by selecting the ticker name [WRFGS].
If you don’t currently own ada, please follow the steps above.
No, your digital assets are not locked and can be withdrawn at any time.
A stake pool is a reliable server node that focuses on ledger maintenance and holds the combined resources, the stake, of various stakeholders in a single entity. Stake pool operators run the stake pools and are responsible for processing transactions that will be placed in the ledger, as well as producing new blocks. Stake pools are at the core of Ouroboros, Cardano's proof-of-stake protocol.
Due to Cardano’s staking mechanism, funds are not locked and can be withdrawn at any time. There are no slashing penalties for stake pool operators harmful behaviour so delegators don’t have the risk of losing their funds.
Staking rewards are incentives used to ensure the longevity and health of the Cardano network and ecosystem. The purpose of stake pool rewards are to encourage people to participate in the success of the network, which relies on native assets staked.
The Cardano protocol automatically distributes staking rewards every 5 days.
Anyone can participate in staking with Switzerland for UNHCR. Current ada holders can delegate from their wallet using ticker [WRFGS]. Non-ada holders will need to follow the steps ‘How do I stake’ which includes downloading a wallet, purchasing ada, transferring ada to the wallet, and delegating stake.
ada is the native token (digital currency) of the Cardano blockchain. Any user, located anywhere in the world, can use ada as a secure exchange of value – without requiring a third party to mediate the exchange. Every transaction is permanently, securely, and transparently recorded on the Cardano blockchain.
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
Cardano restores trust to global systems – creating, through science, a more secure, transparent, and sustainable foundation for individuals to transact and exchange, systems to govern, and enterprises to grow.
Currently we only offer staking through the Cardano blockchain. To participate in this initiative, users must hold ada, Cardano’s native currency.
The pledge is the amount of ada that the stake pool operator ‘delegates’ to their own pool. This pledge represents the operator's commitment to maintain their pool and support network activity. The more ada that is pledged, the higher the stakepool’s staking rewards, which are dependent on the pool’s level of uptime and its performance
In the case of WRFGS, the revenue earmarked towards the pledge allows CH4U to signal its commitment to the stake pool as a means of resource mobilisation and optimise for the generation of rewards.
This collaboration with the Cardano Foundation is an amazing opportunity for us to raise funds in an innovative way and help support the cause that has driven UNHCR for the last 72 years. The Cardano community is highly engaged, and we could benefit from a new type of donors that we would have otherwise not reached as easily. We are confident that our long-lasting engagement in supporting people forced to flee around the world will inspire the community to delegate their ada for a good cause. On a more technical perspective, Cardano has a different staking mechanism from other "proof-of-stake" chains. Its main advantages are that the custody remains with the ada holder, there is no locking, meaning that withdrawals can be made anytime, and there is no risk of slashing in case of inactivity, which ultimately guarantees more safety.
It is a new and innovative way of raising funds to help support our cause. The opportunity of a stake pool generating stake pool rewards enables an even larger community to make a difference and deliver lifesaving assistance to those most in need. It is a great way of continuously generating resources, which would then go towards UNHCR’s most urgent operations on the field.
Switzerland for UNHCR is the national partner of UNHCR for Switzerland and Liechtenstein. Its mission is to raise critical funds for UNHCR operations in the private sector, as well as to raise awareness to the plight of refugees. Switzerland is today also home to one of the most attractive and favourable legal frameworks for cryptographic assets. This has drawn many companies from the crypto- and blockchain industry to set up their base in Switzerland. As the Cardano Foundation is based in Switzerland, Switzerland for UNHCR sought out potential partnerships in order to support people forced to flee worldwide.