Wikimedia stops cryptocurrency donations
Wikimedia, the nonprofit organization in charge of Wikipedia, has decided to suspend accepting cryptocurrency donations. This was the conclusion of a three-month debate centered on the environmental effect of Bitcoin. The ultimate decision was taken in response to a community vote on a GorillaWarfare proposal by member Molly White.
Wikimedia is canceling its Bitpay account to ban receiving cryptocurrency donations in the future. After much deliberation, the administration made a decision. Further, out of 400 community members that voted, 234 did vote in favor. The non-sustainability of mining, the potential of fraud, and the relatively low share of cryptocurrency donations compared to others all weighed in favor of cryptocurrency refusal.
We should mention that cryptocurrencies have contributed a small share of the project’s financial structure. The organization revealed in January 2021 that it received around $130,000 in crypto donations during its previous fiscal year or about 0.08% of its total income.
Molly White claimed that accepting bitcoin donations may harm the organization’s credibility. However, previously Wikimedia accepted Bitcoin, Bitcoin Cash, and Ethereum. She has also mentioned the massive energy requirements of the Bitcoin and Ethereum blockchains but added that there are alternative eco-friendly cryptocurrencies.
Philanthropic donations in cryptocurrencies grew more than 15 times by 2021. In turn, philanthropists preferred one of the leading altcoins, Ethereum. According to Giving Block, the website handled more than $69 million in donations, up from $4.2 million the previous year. The average donation was $10,455, with around 42% coming in November and December. Unexpectedly, renowned NFT initiatives raised more than $12.3 million in donations in 2021.
The Giving Block’s co-founder, Pat Duffy, attributed the increase in donations to a variety of factors. These include an inflow of money and new ideas into the cryptocurrency field, as well as increasing tax knowledge about crypto. Ethereum was the first cryptocurrency to replace BTC. Donations to The Giving Block in ETH totaled almost $30.8 million in 2021, compared to roughly $25.9 million in bitcoin.
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