Donato: Smart contract charity foundation know where your donation is going White paper v1.3 But there is always creative destruction in markets: there are always new winners taking the place of those that are. So if you only look at the market's surface, it may appear flat, but there's always huge turbulence taking place within. Kerr Neilson Disclaimer: This copyrighted document and its parts of the Donato Foundation may not be retransmitted, reproduced, rebroadcasted, or otherwise distributed or used in any form without the express written consent of the Donato Foundation.
1.1 Abstract Donato is a decentralized public blockchain platform implemented by smartcontracts. The platform supports micropayments and donations in a way that hasn t been done ever before. With Donato s public decentralized blockchain a trusted third party will be able to verify payments and allocate funds directly to the people. By doing this, Donato will solve the biggest problem with charity funding; transparency. It is vital for both the donating party and receiving party to know their funds are transferred anonimously, safely and that they are going to be used for the intended purpose. Donato is the first totally untaxable cryptocurrency in the world, breaking the barrier that has been set by the regulation authorities trying to dismantle the revolution in the world of blockchain. 2.1 Introduction Donato coin is a smartcontract platform and cryptocurrency based on Ethereum blockchain. Donato is trying to disrupt a multibillion dollar industry. More precisely a 390 billion dollar donation and charity industry that has been centralized for a long time and needs to be changed in order to give power back to the people. The main problem with charitable organisations is that they have become redundant. People have lost trust in donating because there is still no way of directly sending money to those in need. Whether it is donating to a child that is in need of operation, or just sending funds to a family that lost their house, Donato will bring a smartcontract platform that will decentralize donation crowdfunding by bringing together two simple parties. People who are donating, and those in need. Transparent funding is what lacks in the donating industry, if we can call it that. It has become an industry, and Donato is changing that. By implementing SegWit technology there will be no need for unsecure transactions.
3.1 Mission statement The Donato Foundation s mission is to improve the quality of the current charity and donating industry, reduce costs and creating a whole new donating community. The Donato Coin was created to help Donato Foundation achieve these goals by giving power back to the people. The charity industry has become redundant and centralized to the point where select few individuals and organisations control the whole community. Our goal is to change the complete philosophy about donations and target each sector of the donating industry so it can have several uses; all of this will be achieved with smartcontracts. The goal is to create a new ecosystem independent from other cryptocurrencies and provide a solution to the existing problem of centralized donations through a blockchain. The Donato Foundation is determined in evaluating the value and content of the donation industry and represent every individual and organisation that can influence in the main goal to decentralize donations. Donato will be both a Financial Technology company and a Platform of the global donating atmosphere. The Donato Foundation s token distribution and total token supply will be explained later in this whitepaper. 4. Key Objectives All service industries aiming at longterm success are driven by their customers feedback. Donating industry is no exception. We are calling it an industry, because that s what has become over the years of a few companies cornering and dominating the whole market. Most of the current companies take as much as 90 % of donations to use for marketing and employee paychecks, leaving the final ammount of money received to only 10 %. This policy is certainly unsustainable in the long run, and that is where Donato steps in. No powerfull organisation, no big regulatory agency, no central company with power can develop the charity industry better than the community itself. The industry needs constant feedback from the donators to keep the system going. Donato emphasizes these chalegenges and offers a solution for increasing the efficency that is desperatelly needed in the donating industry. Implementing a blockchain based smartcontract cryptocurrency can incetivize the community in solving current and future possible complications. Donato
will accomplish this goals with implemention of goals and milestones that will be provided in the next pages of this whitepaper. 5. Breakdown of the industry 5.1 Donating industry Charitable giving continued its upward trend in 2016, as an estimated $390 billion was given to charitable causes. For the third year in a row, total giving reached record levels. This increase and the overall size of charitable contributions is further testament to the integral role charities play in our society, a role which continues to grow. Who is giving? As in previous years, the majority of that giving came from individuals. Specifically, individuals gave $281.86 billion, accounting for 72% of all giving and representing a 3.9% increase over 2015. Foundations which includes grants made by independent, community, and operating foundations gave $59.28 billion (15% of all donations). This represents a 3.5% increase over the prior year. This data is somehow inacurate because most individual contributors donate their funds via another organisation. If it is done that way, the whole idea of decetralization doesn t make sense. Donato will allow individuals to be independent in their donations. Charity companies may not be the most transperant organisations, but what it is apparent in their line of work is that they have a large ammount of clients and know how to attract customers. Their employees can get incentives for connecting the two parties. Those donating and those who are in need. By decetralizing this process we are cutting out the middle man and making every person with our wallet a potential charity organisation. Business can also
participate in charity by sending untaxable ammounts of money to people, and to multiple addresses by sending a lot of little transactions to various addresses. We are making this happen with our own dapp or Donato App which is available on Apple store and Google Play store. 5.2 History of charitable markets Charitable donations result from four central sources: individuals, corporations, bequests and charitable foundations. Each provides considerable contributions, but by far the most significant amount of giving comes from individual givers. Individual givers comprise over 72 percent of total donations given annually. The second largest contributing entity are foundations, which are normally responsible for approximately 15 percent of all donations; bequests and corporations make up the rest, about 6.5 percent each. Throughout both good and bad economic times, charitable giving continues to steadily come in with minimal alterations due to negative economic circumstance. In the US the number of nonprofit organizations registered with the IRS has grown by nearly 60 percent from 1995 to 2005. Following this trend, charitable contributions have almost doubled in real terms since 1990. Focusing on the United States alone, we can see that since 1968, growth in charitable donations of money has approximately doubled the growth of the S&P 500. In comparing the two, an interesting pattern is uncovered about the cyclical nature of the economy and its effect on giving: while charitable giving is reactive to economic circumstances, it is considerably more responsive to economic upturns than it is to economic downturns. This relationship has led to charitable drastically outpacing the S&P 500 over the last 10 years. 5.3 Current trends with cashless donations Charitable donations can be more than cash. A growing number of people are giving noncash assets, such as Donato, life insurance policies and restricted stock, to their favorite causes. Fidelity Charitable, a donoradvised fund and the nation's secondlargest grantmaker, reports that people gave a record $796 million of nonpublicly traded assets to charities last year. Donoradvised funds allow people to take an immediate tax deduction on their donations,
invest the assets taxfree and grant the value of the assets to qualified charities at the time of their choosing. 5.4 Untaxable donations For example, let's say a business owner makes a deal to sell his company and gifts shares of his stock worth $50,000 to a donoradvised fund. The business owner would avoid taxation on that $50,000 when the company is sold. Assuming a cost basis of zero and an effective tax rate of 30 percent, a combination of longterm capital gains, state income tax and Medicare surtax, that is a longterm capital gains tax savings of $15,000. Plus, that $50,000 gift is available to be claimed as a itemized charitable tax deduction. Or let's say you want to unload Donato after its rise over time. If you donate the Donato instead of selling it, you can take a charitable deduction for the fair market value on the day you give it away. Another bonus: You'll also avoid capital gains taxes on the increase in value over time, which you would pay if you sold the Donato Coin and then gave the charity the cash from the sale. You can only deduct the fair market value if you held the Donato; or any other cryptocurrency for more than a year before giving it away. If you've held it for less than a year, your deduction is limited to your cost basis, or what you paid for the digital currency, not its current value. Having that information in mind, the tax authorities can still claim you were holding assets to acquire certain capital gains, when other cryptocurrencies are involved. With Donato, a nonprofit organisation there is no basis for claiming capital gains tax or any other tax. Donato is specifically made for donations, so it is avoided from the start, and you are free from paying any taxes on it. 5.5 Anonymising payments With Donato anonymous multisig encrypted data, there is an extra layer of security when sending your donations or charitable gifts from your acccount. Recent legistlation of Bitcoin being taxed and latest court appeal from the IRS to Coinbase to release the names of their clients in the U.S. in the interlude of taxing Bitcoin as capital assets, first in the United States, and then across the globe. It will be almost impossible to avoid capital gains tax on Bitcoin in the year 2018. With Donato s technology and purpose all of that will be eliminated, and the need for safe transfer of money will be resolved. Donato Coin will be used to make secure, anonymous payments anywhere in the world
to use for charitable donations, totally untaxable anywhere in the world. Donato is truly revolutionize the donating business and cashless payments. 5.6 Working with political parties For a long time there has been a need for decentralization of political campaign. Another problem that has risen over the years is transparency. Donato will bring those two features together via smartcontracts. For example, your business is trying to support some political campaign and you are contributing with your Donato tokens. Political party will issues a smart contract so it can automatically send a thank you note and promotion materials as soon as their wallet receives your funds. Decentralizing political funding will make every individual a personal bank with fund allocated for that process. Funds will be allocated to specific wallets that will be transparent, and people will be able to see where their money is going. 5.7 Working with religious organisations Historically, Religious groups have received the largest share of charitable donations. This remained true in 2016. With the 3.0% increase in donations this year, 32% of all donations, or $122.94 billion, went to Religious organizations. Much of these contributions can be attributed to people giving to their local place of worship. 6. Risks with investing in digital cryptocurrency 6.1 Transparency There are more than 1400 cryptocurrencies listed on CoinMarketCap website at the moment, and in the future that number will rise. Some of this cryptocurrencies are used for manipulation and they have no real use, so beware when investing in project with no actual White Papers and with no real founders who can't be found anywhere on Social Media or the news. Some of the ICOs in the past have become a classic exitschemes where there is no real product, no real market, and technology is not present. These companies can be easily recognized since founders are kept in secrecy and there is no
transparency anywhere in the whitepaper. As far as Donato Foundation, you can personally contact each member of the staff, via your choice of social media or in person at your convinience. Donato team is responsive to potential investors and transparent in funding the whole project. You can read about fund allocation and withdrawal of contributed funds later in the whitepaper. 6.2 Cryptocurrency risk Cryptocurrency market is highly volatile, and in the short term subjected to price manipulations, or more commonly reffered to pump and dump strategy. Do not purchase more DNA tokens that you can afford. Take time to understand the project and technology over time. This is a longterm projects, which can produce great yields if it accomplishes mass adoption. 6.3 Regulatory risk Donato Foundation is not responsible for any legislation passed around the world that can endanger the whole cryptocurrency market, and therefore can't foresee any implications that might occur to its investors. In September of 2017 there were talks about Chinese authorities banning Bitcoin mining and Bitcoin exchanges across the country. That rumour alone affected highly at the price of all cryptocurrencies at the time, and it is up to every individual to assess the presented risk. Donato has taken steps to ensure compliance with regulations and intends to comply with these directives, as appropriate and within our capabilities.a recent decision by the U.S. Securities and Exchange Commission (SEC) has shown that corporations that issue their own ICO may have to register with the SEC if the token is regarded a financial security. 7. DNA Sale details Hard cap at 20 million dollars Initial price at $0,003
Based on Ethereum blockchain, and the Ethereum smartcontract platform 7.1 Token distribution The DNA tokens will be distributed as following: crowdsale Employee's tokens will have a vesting period of 10 months, with 25 % available every two months. The company projected use of funds is following: 45 % R&D and foundation development, artificial intellingence, blockchain developers and cryptography experts 15 % mar k et analysis and further investigation of current donating industry trends 15 % marketing and brand improvement 15 % web and application development 10 % legal framework investment and operating costs
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