Certificates of impact

Abstract

The proposed “certificate of impact” system enables altruistic individuals to contribute to causes they value without exclusively relying on doing good deeds themselves. Users can “mint” certificates associated with their actions and exchange them to acquire certificates for other causes they support. This system aligns individual incentives with altruistic goals by allocating causal responsibility explicitly and aligns funding with perceived impact. It also facilitates a more consistent conversion between good done and compensation, allowing funders to support diverse initiatives, coordinate their efforts, and make more informed decisions. The system’s flexibility allows for various funding models, from grants to prizes, and encourages research on effectiveness. While it poses theoretical challenges related to infra-marginal units of impact, it has the potential to enhance the overall value of altruistic activity and create Pareto improvements in funding outcomes. – AI-generated abstract.