Fintech Scholarship Donation & Distribution System
Revolutionizing scholarship management with blockchain for transparency, accountability, and efficiency.
Addressing the Scholarship Scandal at HKU
Restoring Trust
The recent scandal highlighted the need for systemic reform in scholarship management, prompting calls for transparency and accountability.
Beyond Traditional Systems
Traditional donation systems face pressure due to lack of transparency, fund misdirection, and failure to track donation usage, affecting sustainability.
Problem Statement: Transparency & Efficiency Gaps
1
Lack of Transparency
Traditional systems lack structured mechanisms to monitor fund utilization, breeding mistrust.
2
Inefficient Fund Distribution
Relying on intermediaries complicates fund distribution, undermining timely student support.
3
Limited Stakeholder Engagement
Decision-making is limited to a small group, resulting in a mismatch between needs and donor intent.
Fintech Solution: Key Features
Transparent Donation Process
Fiat money (HKD) converted to USDT for on-chain processing ensures a fully transparent donation process.
Blockchain Integration
USDT managed via smart contracts on the Base chain for trustless scholarship disbursement.
Virtual Credit Card System
Scholarship recipients get virtual cards with regulated spending on approved academic expenses.
Key Components of the System
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Traditional Banking Module
Receives HKD donations and provides notifications via API.
2
Fiat-to-Crypto Conversion
Converts HKD to USDT using a trusted exchange.
3
Blockchain & Smart Contracts
Manages USDT donations and automates disbursement on Base chain.
4
Virtual Credit Card System
Issues cards with scheduled top-ups and spending restrictions.
Interaction Flow: From Donation to Disbursement
1
Donation Phase
Donor transfers HKD to the designated bank account; system confirms receipt and converts to USDT.
2
Disbursement Phase
Smart contract triggers top-up to recipient's virtual credit card.
3
Application Governance
Stakeholders submit/vote on proposals to adjust disbursement rules, amounts, etc.
Technical Implementation: DAO Governance
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DAO Contract
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Voting Mechanism
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Upgradeability
DAO Governance integration involves a dedicated set of smart contracts that handles proposal submission, voting, and execution, ensuring continuous improvements and adaptation.
Fiat-to-Crypto Conversion & Virtual Cards
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3
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APIs & Exchanges
Integrates with trusted APIs like Binance for HKD-to-USDT conversion.
2
Process Flow
HKD deposit triggers conversion to USDT, transferred to smart contract.
3
Provider Integration
Uses fintech providers like Stripe for virtual card issuance and top-ups.
Objectives of the Application Initiative
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1
Sustainability and Growth
2
Accountability
3
Community Trust
4
Streamlining Fund Management
5
Enhancing Transparency
The key objectives focus on enhancing transparency, streamlining fund management, establishing community trust, ensuring accountability, and promoting the sustainability and growth of scholarship programs.
Scheduled Disbursement & Virtual Card Top-Up
The process uses on-chain scheduling via smart contracts and off-chain card top-up integration via middleware to maintain disbursement and spending restrictions.
Challenges & Mitigation Strategies
Future Enhancements & Expanded Use Cases
Advanced Analytics
AI-powered insights on scholarship fund impact and usage trends.
Mobile Application
Dedicated apps for donors, recipients, and DAO members.
Customizable Donation Rules
Donors define custom disbursement via dao governance.
Expanded Use Cases
Adapts the platform for other philanthropic & social funding.