Using Blockchain to Pay for Reconstruction Work in Ukraine

With the creation of NFTs for the sunflower-painted destroyed buildings and cars, and the commitment to buy by crypto millionaire Brock Jeffrey Pierce, the use of blockchain-based finance has entered a new era of humanitarian aid.

The project’s creator, Trek Thunder Kelly, a US-based artist, together with Ukrainian artist Helen Yanko, has just completed six murals of Ukrainian sunflowers in municipalities around Kyiv that suffered great destruction during the Russian occupation.

“I reflected on the situation of my professional and personal network, and artists have been one of the most vulnerable groups since the start of the war. However, since individuals are very unlikely to pay for art in current times, artists can offer their time and skills through this missing piece that has now emerged.” – Oleksiy Burak, co-creator

Ukrainians have always had a strong connection with sunflowers. They not only symbolize the color of the national flag of Ukraine, but are also a leading agricultural product in the country. Ukraine was the largest global producer of both sunflower oil and sunflower meal before the Russian invasion decimated the industry.

“Traditionally, blockchain has been used in finance for digital payments through cryptocurrencies. As the technology evolves, as people engage with it, new applications of blockchain are emerging, connecting different actors in society in ways that are neither obvious nor expected. In research, we call this phenomenon ‘reframing’, a shift in how a technology is perceived and used. Connecting the need for infrastructure reconstruction with digital art and decentralized finance could be an appealing reframe for blockchain.” — Mattia Bianchi, professor at Stockholm School of Economics.

Painting on murals and cars is not just an act of putting a “temporary art-based bandage” on the wounds of war-torn municipalities. The novelty is to use blockchain-based financing to fund humanitarian work.

The increasing popularization of Blockchain-based technology, space for the appearance of new triangulations that seemed far-fetched not long ago. Blockchain has allowed users to profit from selling their Wi-Fi signal to others with Helium, or profit from users connected to crowdfunded mobile phone infrastructure such as with World Mobile in countries like Zanzibar. Triangulation between technology, artists and charities is just a new frontier that has been crossed.

Although Helium and Worldmobile represent very different solutions, users are paid for their participation in the cryptocurrency and blockchain ecosystem, moving the use of crypto from asset classes to means of payment and utilities.

The project ‘Flowers For Hope’ (FFH) has a new modus operandi which the founders hope will be replicated in other conflict areas as well. The local artists paint Ukrainian national symbols on “murals”, which are pieces of graphic art painted directly on walls, ceilings or structures such as a car.

The completed paintings are digitized as NFTs and offered to collectors, investors, philanthropists and to the public. The money raised from the sale of these artworks will return at least 80% to both the artists and the local charity called “Women and War” which provides psychological help to individuals affected by the turmoil of war.

Like the World Wide Fund for Nature (WWF), which spends up to 19% on fundraising and administrative costs, FFH strives for a similar level of administrative costs. Today, the umbrella organization Beatify Earth provides the legal structure, carries out costly international transfers, and Roji, which hosts the NFT platform, is responsible for the majority of the administration fees.

“The legal status of NFTs is already a complex issue. This project shows how NFTs can be used for a good purpose and how many more levels of complexity can arise from the already established issues.” – Nicoll Corallius – project advisor

Once the pilot project is complete, it is expected to grow in both complexity and intensity. In Stockholm, where the project originated as a pro bono joint venture between Kelly, Swedish executives, a paint manufacturing company and members of the Polish startup community living in Sweden, Polish Ambassador to Sweden HE Joanna Hofman sees another potential angle – taking place not only in Ukraine, but also in other neighboring countries.

She sees the possibility of Ukrainian artists painting murals in Paris, Brussels or other European capitals to provide additional aid for reconstruction and to ensure that communities do not become war-weary with rising gas and oil prices.

Trek Kelly sees potential in working with external partners who can provide tangible d integrated into the NFTs. For example, for subscriptions to services such as Netflix or Amazon Prime, to provide additional incentives to the philanthropic community that will increase the popularization of the project.

Kelly envisions a multi-faceted platform that brings art collectors, local Ukrainian NGOs and artists together with the goal of providing humanitarian aid to Ukraine – but the fine print will be determined after an evaluation of the completed pilot project.

Irpin municipality has already agreed to provide more walls for artists who want to explore the idea. With the goal of “positive reframing” by combining blockchain-based financing with humanitarian aid, the project is designed to be replicated in nearby jurisdictions under the same umbrella organizations. However, the beauty of the decentralized umbrella organization is that the project can be replicated even without the participation of the core team members listed above, even today.

Edited by: Grace Marshall & Sajid Nadeem