# Intro

In Brazil, social and environmental impact projects face funding challenges. Most initiatives depend exclusively on seasonal public grants or sponsorship from private sectors.

<figure><img src="/files/gV9MTRYuMxNZqloFZSmc" alt=""><figcaption></figcaption></figure>

The lack of funding mechanisms results in an unequal distribution, favoring those projects with greater institutional connections or capacity in bureaucratic processes. Onchain capital allocation ecosystem has developed novel tools, such as quadratic funding and coordination protocols.

However, these mechanisms remain inaccessible to most Brazilian entrepreneurs due to knowledge, technology, and infrastructure barriers.

### Problem

A metaphor which goes: in the olden days, there is a commons which is owned by everyone, but the problem is that if everyone uses it, the commons will become completely unusable due to overuse. Zoë Hitzig says:

> Why are these public goods so important? Well, let’s think about what sorts of things satisfy these definitions. Some of them are pieces of infrastructure that we really couldn’t live without. Everyone needs a lighthouse in the harbour to signal to the boats finding their way back, but, at the same time, no one wants to take responsibility for building the lighthouse.

<figure><img src="/files/OjakoGLT0rwElMQxhjJa" alt=""><figcaption></figcaption></figure>

### Funding and Allocating Capital Onchain

**What if we could educate the public about a new capital allocation mechanism?** A system where the value of a contribution is not determined by its amount, but by the supporters and community.

We want **Dádiva** to be a bridge between: Brazil's socio-environmental impact communities and onchain capital allocation mechanisms.


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