I hoped to get more information about the new proof-of-participation concept from the whitepaper, but I only found superficial description about it. Can you provide some more "mathmatical" information?
The proof-of-participation grants to businesses will be made based on a process of (1) application, (2) qualification, (3) discretion by the Foundation and its national and local affiliates. So, here's an example of how it would go:
1. Companies A, B, and C apply for a grant. They each submit information about their company's activities and business practices according to a template provided by the Foundation.
2. Each company's application is scored according to a scoring system. This is where mathematics will come in. Let's say Company A scores 60/100, Company B scores 85/100, and Company C scores 40/100. Let's say 50/100 is set by the Foundation as the threshold to qualify for a grant, so in this case Company A and B would qualify, but Company C would be eliminated from consideration.
3. Now the grantmaking institution has to decide how much Grantcoin to give to Company A and B. Let's say it's two local businesses in a particular city. So the members of the local affilate of the Grantcoin Foundation in that city would discuss those companies and their merits, and would decide how much to grant to each one.
In terms of the specific qualifications and scoring system, the details have yet to be determined. But in broad terms, it will be based on what's called the
Triple Bottom Line, which means companies have to demonstrate evidence that they are profitable, that they are respecting people, and respecting the environment. Companies will be scored in all three of those areas. Within each area there will be more specific criteria. Here is a rough overview from the first draft of our
Policy on Grantbanks (national/local grantmaking affiliates):
6. Potential recipients of business grants as defined in section 5 above must submit to the Grantbank an application detailing its value or success in all three aspects of the triple bottom line: humanitarian value (positive effect on people and community), environmental value (positive effect on the planet and ecosystem), and economic value (profitability). This may include descriptions of business practices and policies, certifications received, financial data, and other relevant information. At minimum, the applicant must address these areas:
a. Humanitarian:
i. Degree of ownership by employees, and opportunities to earn equity or participate in decision-making in the organization, if any.
ii. Presence of labor unions, if any, and policies in that regard.
iii. Employee compensation and benefits compared to similar businesses in the same or similar locations.
iv. Degree of inequality of pay scale and benefits for highest and lowest employees.
v. Degree of reliance on temporary or part-time labor without benefits.
vi. Steps taken to source inputs through fair trade imports, if applicable.
vii. Steps taken to source inputs from companies with humanitarian practices, e.g. avoiding or reducing inputs produced by child labor or other forms of exploitation of workers.
viii. Participation in community service and charitable donations and activities.
b. Environmental:
i. Steps taken to reduce carbon footprint.
ii. Steps taken to reduce pollution and industrial or consumer waste.
iii. Policies and practices regarding agriculture, forestry, or animal husbandry, e.g. organic, sustainable, non-GMO, cruelty-free, etc., if applicable.
iv. Steps taken to source inputs from environmentally responsible companies.
v. Charitable donations and activities to help the environment.
c. Economic:
i. Current revenue, expenses, and profitability (at least breaking even?).
ii. Revenue trend (growing or declining?).
iii. Profitability trend (growing or declining?).
The specific granular details of the application, scoring criteria, formulas, and process, are yet to be determined. The Grantcoin Foundation will be building relationships with certifying bodies that have already developed methods for scoring the sustainability of businesses, to learn from their expertise and develop the details of our business grant program accordingly.
