Munera: A Blockchain-Native Donation Infrastructure

Last Modified: Augustus 20, 2025

1. Abstract

This paper presents a blockchain-based donation system designed for direct, transparent contributions to verified foundations. Donations, made in the platform’s native ERC-20 token, are secured in foundation-specific wallets and released gradually via a vesting mechanism to ensure stability and encourage long-term value growth. A deflationary burn policy reduces token supply with each donation, enhancing scarcity. This system aligns the incentives of donors, foundations, and token holders, fostering a blockchain‑based, sustainable model for impactful giving.

2. Introduction

2.1 Context & Challenges

Traditional donation systems are designed to transfer value from donor to recipient with limited structural complexity. While effective at enabling direct support, they typically lack mechanisms for sustained alignment between donors, recipients, and the broader stakeholder environment. As a result, donations often function as isolated financial outflows, disconnected from long-term economic participation or engagement.

2.2 Proposed Framework & Innovations

This paper introduces a blockchain-native donation infrastructure that integrates programmable vesting, deflationary tokenomics, and transparent accounting into a unified model. The system supports gradual fund disbursement, potential value appreciation, and full traceability, features not inherent in conventional donation systems. As a result, it functions as a crypto-native reserve mechanism that complements a foundation’s existing financial model, with potential to grow in relevance as crypto adoption evolves.

By aligning donor incentives with time-based release schedules and on-chain transparency, the system establishes a new donation paradigm, one that bridges the gap between giving and investing, and links long-term value creation to philanthropic outcomes.

3. System Overview

The system introduces a donation framework built on Ethereum, using a native ERC‑20 token to facilitate on‑chain programmable giving. Each registered foundation receives a dedicated smart‑contract wallet with embedded vesting logic. Upon donation, tokens are locked and gradually released, creating a structured reserve and supporting long‑term capital planning.
Separately from the vesting schedule, a deflationary mechanism burns a small fraction of each donation, steadily reducing total supply and potentially reinforcing long‑term value for token‑holders.
Affiliated foundations retain full custody of their wallets, while disbursement occurs according to smart-contract logic, without reliance on intermediaries.

To support early adoption, Munera will launch with a shared foundations wallet comprising ten well‑established, globally recognized foundations. While affiliated foundations follow a gradual vesting schedule, this pooled wallet operates on a simplified release cycle: donations are held on-chain, with 1.5% burned at entry and the remainder distributed evenly every three months. This initial setup lowers the barrier for participation, providing users with a familiar and relevant starting point as the platform moves toward direct foundation integration under full vesting logic.

4. Platform Architecture

4.1 Network Choice

• Ethereum mainnet is used for all on‑chain operations.
• Conformance to the ERC‑20 standard ensures compatibility with existing wallets and developer tools.
• A large validator set provides transaction finality and network reliability.

4.2 Consensus & Security

• All token operations are settled on Ethereum’s proof-of-stake network.
• Contracts leverage audited OpenZeppelin modules; burn and release functions are implemented without additional storage variables to minimize the attack surface.
• A third‑party security audit will be completed prior to main‑net launch, followed by a time‑locked bug‑bounty program.

4.3 Execution & Monitoring

• Automation: An automated off‑chain scheduler invokes the vesting contract’s “release()” function once per month.
• Fallback: Any address may manually trigger the “release()” call if the primary scheduler fails.
• Transparency: All transactions, balance changes, and event logs are publicly accessible via block explorers.

4.4 Upgrade Path

• Token staking program
• Governance mechanism for adjusting key parameters
• Real‑time impact dashboard to visualize donations, burns, and vesting

5. Vesting Mechanism

To support long‑term planning and reduce short‑term volatility, each foundation receives a dedicated smart contract that governs the gradual release of donated tokens. Funds unlock monthly at a fixed rate of 2 % of the current balance, a deliberately conservative starting point that helps build early value. New donations are automatically folded into the schedule, and the release function operates without state history, using the simple proportional formula.

         Rt = r(t) × Bt

• R_t is the release amount at time t (the number of tokens unlocked that period).
• B_t is the token balance in the vesting contract at time t.
• r(t) is the release rate at time t (initially 0.02, or 2 %).

5.1 Properties

• Isolation: Each foundation operates independently
• Monthly Unlocks: An initial 2 % of the contract’s token balance unlocks each month, creating a gradual and predictable release schedule.
• Auditability: All activity is on-chain and publicly verifiable.
• Flexibility & Adjustability: The release‑rate parameter can be revised by a two‑out‑of‑three vote between the foundation, the token‑holder community (signalled via a public poll) and Munera. This governance path permits the schedule to scale, for example, when crypto‑native inflows begin to outpace traditional funding sources.

All vested tokens remain in the foundation’s smart-contract wallet until withdrawn. There is no expiration or intervention; foundations control their funds indefinitely.

6. Deflationary Mechanism

A burn mechanism applies to every donation: 1.5 % of the transferred tokens is permanently removed and the remaining 98.5 % is sent to the vesting contract. This deflationary step reduces total supply over time, supporting long‑term scarcity and reinforcing the token’s economic value.

7. Token Allocation

Total supply is fixed at 30,000,000 tokens with no further minting. 50% is allocated to market-driven exposure and 50% to strategic reserves, platform development, and incentive alignment.

7.1 Distribution Overview

7.2 Internal Vesting Schedule

In addition to foundation-linked vesting contracts, all non-public allocations, excluding the Public Token Offering (30%), the Donation Incentive Pool (12%), and the Liquidity Provision (20%), are subject to an internal vesting schedule.

This schedule includes a 6-month cliff, followed by a 36-month linear release. The structure is designed to prevent premature token circulation, align long-term incentives, and maintain market confidence throughout the platform’s development.

Vesting Parameters:

• Cliff Duration: 6 months
• Vesting Period: 36 months (post-cliff)
• Unlock Pattern: Linear monthly release

8. Charitable Partners

Munera collaborates exclusively with certified foundations that hold a recognized legal status or accreditation in their respective jurisdictions. While certification standards vary across countries, each affiliated foundation must meet nationally established requirements that demonstrate legal compliance, operational transparency, and charitable purpose.

Foundations may request participation through the Munera platform. Applications are assessed individually through a manual review process. Final decisions regarding eligibility rest with the Munera team.

All affiliated foundations receive a dedicated smart-contract wallet governed by the platform’s vesting logic (see Section 5). This structure ensures consistent fund distribution, on-chain transparency, and alignment with the system’s long-term capital planning model.

Foundations may choose to retain or convert received tokens at their discretion. Munera provides technical support throughout onboarding and fund access, helping partners navigate wallet management and token operations as needed.

The partner selection process is designed to accommodate a wide variety of charitable missions, with no preferential treatment toward specific causes or regions. The platform aims to support a diverse and expanding network of foundations, reflecting the broad range of social, humanitarian, and environmental goals that donors may wish to support.

9. Contribution Matching

The contribution matching mechanism allocates a dedicated token pool to boost donor impact by supplementing the total monthly donation amount received by each foundation with an additional 50%. For example, if a foundation receives 100,000 tokens in donations over the course of a month, it will receive an additional 50,000 matched tokens from the pool. Matching is executed monthly. Once the pool is depleted, the program may be extended, revised, or concluded at the platform’s discretion, maintaining flexibility in response to growth and funding priorities.

10. Benefits & Strategic Impact

Unlike conventional systems that separate donor intent from asset performance, this model aligns giving with value creation, allowing contributions to play a role in a dynamic, blockchain-based ecosystem. Donors engage in a system where scarcity and on-chain activity drive long-term value, making participation both meaningful and potentially rewarding. This approach enables new forms of participation, from crypto-native users seeking meaningful impact to organizations looking to modernize donation infrastructure through blockchain logic. As a result, this model may attract a new segment of the crypto community, individuals who want their investments to contribute to real-world causes, and donors who value the structure and accountability of blockchain-based systems. In addition, both users and foundations can transparently track donation flows on-chain, creating a clear and verifiable funding ecosystem.

A matching mechanism amplifies donor impact through a dedicated token pool, while future features like staking may reward long-term commitment to the network’s mission. The system enables borderless giving, making it possible to support causes globally, without reliance on traditional financial intermediaries.

11. Conclusion

This paper has presented a blockchain‑native donation architecture in which contributions flow directly to foundation‑dedicated smart contracts on Ethereum. Funds unlock gradually through on‑chain schedules, while a programmed burn constrains supply, together transforming donations into a transparent, automated reserve of capital.

By linking donor intent, controlled foundation access to funds, and token‑holder interests in a single incentive loop, the model complements traditional philanthropy with a verifiable, economically aligned pathway. Individuals and institutions can thus pursue social impact while participating in the token ecosystem’s long‑term value dynamics.

References

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