How to Raise Funds With NFT Issuance: Case I.- Ecological Project

This article is for educational purposes and is intended for:

Business organizations that want to add value to the products and services that they currently offer to their customers.
Non-governmental and non-profit organizations that wish to finance projects of social benefit.

Introduction

The automobile has its origins in the late 19th century, when in 1885 the German inventor Carl Benz patented his internal combustion engine Benz Motor Wagen (BMW). These vehicles became available throughout the 20th century and today developed economies depend on them.

Can you imagine people's reaction when the first car arrives in their community? Today it is essential to have or use a car to carry out our activities.

Like the automobile back in the day, Non Fungible Tokens (NFTs), which are an application of blockchain technology, are an innovative or disruptive product that can help achieve financial and marketing goals in business and social organizations.

Case I.- Financing an ecological project

The Cerro Azul Park Foundation:

(This is a hypothetical example for illustrative purposes), is an environmental organization, organized in 2009, made up of people who strive to improve the lives of the people who live there in a sustainable way. The purpose is for the inhabitants to use the park's natural resources without harming the environment and at the same time be the guardians of these resources.

The Blue Hill:

It is a broadleaf forest, also called tropical rainforest or jungle, forest formations composed of several species of broadleaf trees. These forests are important for the great diversity of species that use them as habitat and source of forest products.

Environmental problem: The park’s inhabitants carry out the following activities to generate income for family sustenance:

Burning a certain area of the forest to grow food crops or plant grass to raise cattle.
Illegal cutting or felling of precious woods such as mahogany and oak to make furniture and other trees to produce charcoal.

Proposed Solution. - Obtain the necessary funds to:

Educate and raise awareness among the inhabitants of Cerro Azul about the importance of developing environmentally sustainable economic activities.
Provide seed capital for the inhabitants to initiate new activities, such as the provision of ecotourism services.
Implement a nursery to produce plants.

Project cost: Total 200,000 USD.

Direct costs: Estimates by experienced environmental technicians estimate the cost of the three activities listed above for two years of 100,000 USD, benefiting two hundred low-income families, for a total of 1,000 people between adults and children.
Indirect costs: Administrative, marketing and advertising expenses of the project 50,000 USD.
Technological development costs: payment of the team that develops and implements the NFT 50,000 USD.

Note: Please note that this is a hypothetical example for illustrative purposes.

Stages of the project to create NFT as a source of financing

Parque cerro azul hummingbird hábitat:

Hummingbirds are native to all ecosystems, temperate forests, rainforests, deserts, even the most mountainous and high peaks throughout the Americas. These beautiful little birds of barely 2-4 grams stand out among the pollinating beings; they have a sharp vision, iridescent feathers on the neck, short legs, a long and thin beak, a tubular tongue that wraps around the head, which is longer than the beak and with which they suck the nectar from the flowers.

Four species of hummingbird have their habitat in the Cerro Azul Park:

Process of design, implementation, and distribution of NFTs

We created a collection of 4 NFT with an issue of 2,500 units each for a total of 10,000, at a starting or mintage price of 20 USD each, will give a total income of 200,000 USD.

Technical aspects of development:

Global data storage:

We store each image and its corresponding information (metadata) in the Interplanetary File System (IPFS), made up of thousands of computers around the world, which guarantees that no person, entity or government can alter the information:

NFT metadata or information stored in IPFS

Image of the NFT stored in IPFS

Blockchain storage:

The professional blockchain development team builds the ERC721 smart contract and deploys it on the Ethereum blockchain or other compatible network (Ethereum virtual machine consisting of thousands of synchronized computers), which makes this network independent of individuals, entities, and governments. We have named the token Emerald Hummingbird:

Emeralnft

Here we have minted four, but we can create any amount we want, look at the data in the Etherscan explorer with the Smart Contract address.

Presale:

The Cerro Azul Foundation must develop an advertising and marketing plan to find out who will buy the NFTs. With the list of users, each must have an account in a crypto wallet such as Metamask:

0x0245Ed33F7118BF6b373Ac84ba79Ff68F719E7fD

Assignment of NFTs:

Once the foundation receives payment from the clients, the technical team of promoters proceeds to send the NFTs to the buyers' accounts.

Received NFTs:

Each client will have in his wallet the NFT and the amount purchased, in the following image the owner of this wallet bought four units of the Emerald Hummingbird, EmeraldNFT.

List the collection:

Finally, the project can list the collection of NFTs on a Marketplace account such as Opensea, Rarible, SuperRare (there are about a hundred), with the purpose of displaying it and waiting for it to rise in price for later sale. Here is illustrated the collection of the 4 NFTs in Opensea.

Closing remark. - Each buyer when acquiring NFT from an ecological project gets:

The satisfaction of contributing to the conservation of the environment and the reduction of global warming.
Contribute to improving the standard of living of two hundred families.
The return on your investment by selling your NFT at a higher price after a certain period of time.