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Crypto Rewards in Fundraising: Are They Worth It?

Mira Elwood in Business & Economy August 2025 • 3 min read.

"Explore how crypto incentives impact charitable giving and whether they truly motivate donors."

Charitable giving is often encouraged through incentives, ranging from simple thank-you gifts to more substantial rebates. In the rapidly evolving landscape of digital finance, a new form of incentive has emerged: crypto rewards. These digital tokens, offered in exchange for donations, promise to revolutionize fundraising by tapping into the growing crypto community.

A recent study investigates the effectiveness of crypto rewards in boosting charitable donations. By analyzing real-world crypto fundraising campaigns and conducting controlled experiments, the research sheds light on whether these incentives truly motivate donors and how they compare to traditional methods like donation matching.

This article will delve into the findings of this research, exploring the potential and limitations of crypto rewards in the context of fundraising. We'll examine the factors that influence donor behavior, compare crypto incentives to traditional approaches, and consider the implications for charities and donors alike.

Do Crypto Rewards Really Boost Donations?

The study begins by examining a real-world case: the Ukrainian government's crypto fundraising campaign launched in February 2022. Faced with the disruption of traditional banking systems, the government turned to cryptocurrency as an alternative source of funding, soliciting donations in Bitcoin and Ethereum.

To incentivize giving, the Ukrainian government initially announced a potential 'airdrop' of crypto rewards to donors. Researchers analyzed transaction data from the Bitcoin and Ethereum blockchains to assess the impact of this announcement on donation patterns. The results revealed a striking difference between the two cryptocurrencies:

Ethereum saw a massive surge in hourly donation counts, increasing by 706.07% more than Bitcoin after the airdrop announcement.
However, the average contribution size decreased more substantially for Ethereum than for Bitcoin, suggesting that while more people were donating, they were giving smaller amounts.

This suggests that the promise of crypto rewards can indeed attract donors, but it may also lead to a decrease in the average donation size. It also appears that Ethereum blockchain is more suitable for crypto rewards.

The Future of Crypto in Charitable Giving

This study offers valuable insights for charities and organizations considering incorporating crypto rewards into their fundraising strategies. While crypto incentives can be a powerful tool for attracting donors and boosting engagement, it's essential to carefully consider their design and implementation. Ultimately, the success of crypto rewards hinges on their ability to offer tangible value, resonate with donor values, and foster a sense of community and shared purpose.

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Everything You Need To Know

What are crypto rewards in the context of fundraising?

Crypto rewards are digital tokens offered to donors as an incentive for their contributions. These tokens are part of the rapidly evolving landscape of digital finance and aim to revolutionize fundraising by engaging the crypto community. They represent a new form of incentive, offering something different from traditional thank-you gifts or rebates.

How did the Ukrainian government use crypto rewards in its fundraising campaign?

The Ukrainian government, facing disrupted traditional banking systems, turned to cryptocurrency as an alternative funding source. They solicited donations in Bitcoin and Ethereum and announced a potential 'airdrop' of crypto rewards to incentivize giving. This led to a surge in donations, especially in Ethereum, although the average contribution size varied between the two cryptocurrencies.

What was the impact of the airdrop announcement on donation patterns in Ethereum and Bitcoin?

The announcement of a potential airdrop of crypto rewards had a significant impact. Ethereum saw a massive surge in hourly donation counts, increasing by 706.07% more than Bitcoin after the airdrop announcement. However, the average contribution size decreased more substantially for Ethereum than for Bitcoin. This suggests that while the promise of rewards attracted more donors on Ethereum, they tended to donate smaller amounts compared to Bitcoin.

What are the potential benefits and drawbacks of using crypto rewards in fundraising?

Crypto rewards can attract donors and boost engagement, as seen with the Ukrainian government's campaign. However, it is essential to carefully design and implement these incentives. While Ethereum showed a massive surge in donation counts, the average contribution size decreased. This suggests a potential trade-off: more donors might participate, but each donation could be smaller. Charities must consider these dynamics, balancing the appeal of crypto rewards with their impact on overall donation amounts.

What factors should charities consider when incorporating crypto rewards into their fundraising strategies?

Charities should carefully consider the design and implementation of crypto rewards, focusing on offering tangible value, resonating with donor values, and fostering community and shared purpose. The success of crypto rewards hinges on these factors. Understanding the impact on different cryptocurrencies, like the differing donation patterns in Ethereum and Bitcoin, is crucial. Charities should analyze how crypto rewards impact both the number of donors and the average donation size to optimize their fundraising strategies.