In an effort to fund cocoa farmers more equitably, The United Nations Development Programme decided to enter into a partnership with the FairChain Foundation (a Dutch nongovernmental organization) to support the use of blockchain solutions.
Partners will unveil a token-based scheme during the launch of new chocolate bars, which are made with Ecuadorian-grown cocoa. Subsequently, consumers will make direct contributions regarding the production to cocoa producers, as per Oct. 17 SpringWise report.
Blockchain can spur better productivity
Through the Q.R. code within the wrapper of every bar — branded as ‘The Other Bar’ — consumers would be able to make blockchain token donations directly to farmers.
On scanning the Q.R. code, consumers will be able to know the amount of payment that a farmer received for the cocoa that was utilized in manufacturing the bar. In addition, the GPS coordinates of the cacao tree from which the cocoa was harvested will also be displayed on the code.
SpringWire stressed out that many farmers do not earn a living wage since they currently only get 3% of the value of the cocoa that makes the marketed products while ironically chocolate production accounts for a $92 billion in the global industry.
Farmers hope to obtain better payment for the cocoa produced with the existence of FairChain’s project as each of them would receive €3,080 ($3,422) per metric ton — and the commercial buyers would be paid around €1,721 ($1,912).
“The whole idea is to use technology to influence consumer behavior and basically turn every product into a capitalist impact engine,” Guido van Staveren, founder of the FairChain Foundation, said.
Transparency in Donations
The value of each of the project’s token is equated to one-quarter of a cocoa tree’s value. New trees will be planted using the funding raised and consumers would effectively use the blockchain’s recorded data to track how their donations impact production.
For a long time now, the U.N. has been exploring multiple humanitarian use cases for blockchain technology. The agency began with using Ethereum blockchain to transfer cryptocurrencies-based coupons to Syrian refugees. Later on, it used a digital identity system based on blockchain to combat global child trafficking.
The U.N., likewise, released its blockchain solutions research this July with the aim of fostering sustainable urban development in the country of Afghanistan.
However, just recently, the U.N. Office on Drugs and Crime Global Cybercrime Program chief gave a warning that it has become substantially harder to combat terrorism financing, cybercrime and money laundering because of decentralized cryptocurrencies.