Faq

What is Carebit

We are the first non-profit organisation in the crypto world, and the first digital charity to have its own blockchain. Put simply Carebit is revolutionising the charity world by leveraging blockchain technology to provide transparent end to end tracking of charitable donations. Carebit will consist of two funds. One emergency fund to respond to disaster situations and one fund which partners with existing charities.

In addition, Carebit offers an ability to earn a passive income by staking Carebit coins (PoS) or running a Masternode.

Who Owns Carebit?

No One. Unlike any other altcoin, Carebit is truly decentralized in a way that no one person decides its future or takes decisions in regards to where charity funds are spent. Carebit is also the first non profit organization in crypto space and no one takes any salaries , including CEO.

All Carebit assets are declared and available for public viewing at any time, as the live wallet balances are shown on our website.

https://carebit.org/assets/

How can a Cryptocurrency enable full end to end transparency?

Cryptocurrencies are digital or virtual currencies that are encrypted (secured) using cryptography. Cryptography refers to the use of encryption techniques to secure and verify the transfer of transactions. Cryptocurrencies are decentralised, and are powered by a public ledger called the blockchain, that records and validates all transactions chronologically. Once the transactions are locked onto the blockchain they are secure and cannot be altered thus providing full end to end transparency of all transactions.

What is our vision?

We have created our own cryptocurrency with the vision of being able to trace donated funds via the blockchain, from the initial donation through to delivery to the end recipient. Capturing the funds on the blockchain provides full end to end audit trail and allows almost instant transfer of funds via Carebit coins to anywhere in the world.

Our ultimate goal is trade in Carebit rather than fiat. For example, vendors may list Carebit as an option to buy their goods. Donations are raised in Carebit and sent to the recipient charitable organisation who will use the Carebit coins to purchase the required goods directly from the vendor. This end to end movement of Carebit is captured on the blockchain via the Fund Tracking tool, which is currently under development. The vendor is then able to convert Carebit into fiat.

Before Carebit is widely accepted we will develop an interim step where we plan to load Master cards with Carebit coins, enabling goods to be easily purchased. All transactions will be fully transparent and declared. This will be defined in the upcoming updated white paper.

What is the governance structure of Carebit?

The Carebit governance structure including voting rights is defined below. This will be the governance structure used to make community decisions. Further details will be available in the upcoming version of the updated white paper.

 

Rank Number Voting Rights
Founders 2 1 public vote each plus an additional 5 votes given their right to vote as Directors
General Manager 1 1 public vote each plus an additional 5 votes given their right to vote as Directors
Directors 12 1 public vote each plus an additional 5 votes given their right to vote as Directors
Moderator and all staff TBC 1 public vote each plus an additional 4 votes each
VIPs TBC 1 public vote each plus an additional 4 votes each
Community TBC 1 public vote each

 

For a member to have VIP voting rights they must own a minimum of 5 Masternodes (150,000 Carebit coins). Validation of ownership will be required and this will be controlled via a new system where users can login to add their Masternode addresses to claim their votes. There will be a system for monitoring changes including duplicate address detection. This is to ensure a fair voting process is in place to govern Carebit.

What is the legal status of Carebit?

In simple terms Carebit brings together individual funders to form a community, and then the community makes the decision on where to place the funds for social investment. Given that no one trustee can decide where the funds are allocated Carebit falls within the legal definition below.

Unincorporated Association:

An unincorporated association is a membership organisation. It can be whatever its members want it to be, and carry out whatever activity the members choose. It is the easiest, quickest and cheapest way for a group to set itself up. It is ideal for many small groups, especially those without staff or premises. A large number of groups fall into this category (sometimes without knowing it).

You do not have to seek approval of any kind before setting up and you are free to draw up your own constitution, setting out the rules under which your group will be run.

If your aims are not charitable you do not have to register with any regulatory body. If your aims are charitable (as set out in charity law) you will be a “charitable unincorporated association” (a type of charity), and you must register with the Charity Commission if your group has an income of over £5,000 per year.

Unlike a Charitable Incorporated Organisation or a Charitable Company, an unincorporated association does not have a “legal personality”, which means any contracts or liabilities are the responsibility of the trustees as individuals, rather than of the organisation itself.

This type of structure is often used by volunteer-run campaign groups, residents’ associations, PTAs and clubs.

We will keep the community updated on the company’s legal status and structure and welcome any questions at this stage.

Am I able to get donation receipts for tax purpose?

Below an agreed donation threshold an individual has the right to remain anonymous. This threshold is currently yet to be defined. Above the threshold the individual will need to provide their details for Carebit to comply with Anti Money Laundering regulations. When an individual’s details are known a receipt will be generated by Carebit that can be used for tax purpose. This will provided through the mobile application currently in development.

What type of Cryptocurrency is Carebit?

Carebit is a altcoin which is defined as a cryptocurrency that is alternative to Bitcoin. Altcoins each possess their own independent blockchain, where transactions relating to their native coins occur in. This is not to be confused with Tokens which are a representation of a particular asset or utility, that usually resides on top of another blockchain. Carebit therefore provides a unique blockchain for the purpose of solving for the problem at hand.

What is PoS and how is this different to PoW?

The proof of stake (PoS) was created as an alternative to the proof of work (PoW), to tackle inherent issues in the latter. Under proof of work when a transaction is initiated, the transaction data is fitted into a block, and then duplicated across multiple computers or nodes on the network. The nodes are the administrative body of the blockchain and verify the legitimacy of the transactions in each block. To carry out the verification step, the nodes or miners would need to solve a computational puzzle, known as the proof of work problem. Mining requires a great deal of computing power to run different cryptographic calculations to unlock the computational challenges.The proof of stake (PoS) seeks to address this issue by attributing mining power to the proportion of coins held by a miner. This way, instead of utilizing energy to answer PoW puzzles, a PoS miner is limited to mining a percentage of transactions that is reflective of his or her ownership stake.

PoS network is supported by Master Nodes. A Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time. They perform several other functions apart from just keeping the full blockchain and relaying blocks/transactions. Masternodes earn a passive income (block rewards) for the stake they have in supporting the network.

In short, PoS is more efficient, less energy intensive and the ability to hold master nodes (stake in the network) has huge advantages as passive income to charitable organisations and investors. For example Masternodes can be donated to a charitable organisation and this will become a source of passive income.

Carebit is self sustaining

Carebit holds its assets, and has two donation wallets for CARE and BTC. In addition Care has a donation wallet for company expenses as we operate on non profit basis. In its early stages, BTC donations for company expenses will be a huge help to preserve company assets. Furthermore, any donation amounts in our wallets will not be used in a way to create price spikes. In case of an emergency, BTC donations will be used immediately and a campaign to raise funds in Care will be started at a later stage. This will ensure the help is provided in adequate time and the demand for Care will increase over time, as we would have already delivered to the people in need. This sort of works like a smart contract, where community can see what we have done, and donate for that cause. Supply will be cut short as these funds will again sit in company wallets and at any given time, not all the funds will be released at once, that is if we need them.

Collaboration with existing charities will be worked out so they could accept Carebit as a donation. This will also work like a smart contract. The only difference is that there will be no smart contract, but Carebit Directors will make sure the money is spent on specific tasks that we agreed with the concerned charity and the directors will personally make sure that this is the case. Carebit will also partner with different companies, on or off the chain, to make sure that Carebit transactions in fiat are kept at minimal levels.

Donations in other than BTC will be converted to Carebit immediately.