Earn benefits from collaborative projects, promote sustainable agriculture and expand the access to financing to those communities where it does not reach, are some of the main proposals that the Spanish startup EthicHub offers to investors. They are the hallmarks of a profitable investment project, but not exempt from social and environmental awareness.
This form of investment could be described as a win-win model in which everyone wins: private investors achieve a profitability of around 6-8%, while companies and communities receiving credit obtain the financing they need to maintain their activity and secure their way of life.
Environmental impact and sustainable agriculture
Of the triple impact of EthicHub projects (economic, social and environmental), the latter is perhaps the least evident, although it is as important as the other two.
To value this appropriately, we must first understand the structure and character of these crops, always small in size and integrated into nature, with whose rhythms they interact. Aware of the importance of the environment in which they carry out their activity, farmers practice an agriculture that is respectful of local fauna and flora, diametrically opposed to that of large monocultures and other types of exploitation, generally harmful to the environment.
In fact, when we take a look at the different EthicHub projects, we discovered some dedicated exclusively to forest land clearing and weed control, among others. These are essential activities to maintain the necessary balance between agricultural activities and the natural environment in which they take place.
Most The projects in which EthicHub participates revolve around coffee cultivation, although its future plans include the intention to open to other markets. In this way, the farmers of emerging countries like Brazil, Honduras or Mexico They can market their products in international markets in a sustainable way.
Blockchain technology, at the base of everything
But all this would not be possible without the help of the Blockchain technology, which really allows these microloans to be processed immediately and with management expenses and commissions of just 1%. An acceptable percentage, much lower than that applied by conventional financial intermediaries (banks, credit institutions, etc.).
Thanks to EthicHub, anyone from anywhere in the world can make a loan that goes to agricultural communities. It is not necessary to operate with cryptocurrencies, , although that is the most recommended way to get the most out of this system. In fact, around EthicHub there is a great community to share information, answer our questions and learn more about this world.
A fundamental aspect for the functioning of this financial ecosystem is the Compensation Fund, the safety net that investors have. A solution for the supposed case that a project does not work well at all and there is a risk of losing the investment. In short, a reliable safety net that fortunately has hardly been necessary to resort to.
A percentage of 4% of each investment goes to feed that fund. A mechanism that guarantees that the investor will always recover, at a minimum, the money borrowed.
Ethix token, collateral contribution
In addition to this, Any investor can acquire Ethix tokens regardless of whether you participate in EthicHub investment projects or not. This is another element, no less important, that contributes to the possibility of always offering moderate risk for investors.
This option, known as providing collateral, is unan indirect way of becoming a guarantor of small producerss. A very interesting possibility for those crypto investors who are always looking for new opportunities.
And it is at this point where we must emphasize other of the great virtues of this system: the transparency. Anyone can put the public key of the farming communities wallet into a block explorer to check the amount of Ethix deposited there as collateral.
EthicHub, a project for the future
In a very short time, EthicHub has been able to bring to fruition numerous projects with economic, social and environmental impact, also offering good profitability to many small investors around the world.
Their initiatives have already been recognized with many awards and prizes. At the end of the day, although the funded projects have a local or regional scope, the idea underlying all of them is to try to solve a problem at a global level.
Looking to the near future, EthicHub aims to be able implement these solutions in many other countries and on other continents. An ambitious and complex challenge, but based on a realistic basis and, above all, worthy of recognition.