The U.S Election Regulatory Authority(FEC) Approves NFTs as a Fundraising Tool
The United States Federal Election Commission(FEC) has approved using non-fungible tokens as campaign fundraising incentives.
With the approval, NFTs can now help political campaigns in fundraising. Campaigns can provide NFTs as an incentive to everyone who donates a particular amount of money to political parties.
The approval is a significant step forward for campaign fundraising. It provides a new way of encouraging individuals to fund campaigns. It is an essential development for the industry since NFTs can increase transparency in fundraising.
NFTs are now a viable fundraising incentive for US political campaigns, according to FEC. NFT may take the form of audio, campaign literature, position papers, artwork, or other digital content,
The "Howdy" campaign for the US state of New Hampshire was one of the first to employ NFTs. "Howdy," a New Hampshire-based political campaign business, managed the campaign. Further, the campaign encouraged people to donate by offering them the opportunity to win a special Howdy in-game item. Tokens were created using the Ethereum blockchain and could then be transferred or swapped on a decentralized exchange.
NFT Proposals by FEC
As per FEC, DataVault's made an initial proposal to assist politicians in collecting money with NFTs to provide customized NFTs to political committees. These NFTs will be given to donors to the organization. When committees transfer the NFTs to any contributor after donations to the committee, DataVault will charge their fees from the contribution for its services.
In the second proposal, the FEC said that, in addition to the first proposal, the political committee would give another NFT to contributors willing to pay a certain amount of money to the committee again.
The FEC's advisory opinion of enabling the use of NFTs as fundraising tools demonstrates that development in the NFT sector is underway. Furthermore, many large corporations, such as Coca-Cola, Adidas, and McDonald's, now support NFTs. It clearly shows the growing craze of NFTs around the world.