Inspired by household savings, and investments plan within the closed community, famously known as Chit Funds in the Indian subcontinent, and worldwide as a form of rotating savings and credit association (ROSCA).
Where a group of individuals agrees to meet for a defined period and amount, in order to #save, #invest, and #borrow together, a form of combined #peer-to-peer banking and #peer-to-peer lending (#microcredit, #microfinance).
A regular community fund has two actors:
Gamla fund address the issues where the traditional community fund failed:
Trust and security Like in any form of dealing, and transaction, trust and security is the core problem so is community funds, exposing both actors in community funds to equal risk.
- participants as defaulters, irregularity in monthly deposits, abandon the fund
- fund manager defaulting on participants
At Gamla.fund, we export the trust, its execution to smart-contract on polygon blockchain.
Fund management The smart contract is the fund manager, eliminating the middleman, and ensures
every fund participant
to pledge crypto collateral of value 120% > individual fund value (duration * monthly amount), to secures from deposit defaulters.
upon deposit defaulting,
sells off the crypto collateral to compensate the defaulted deposits, keep fund alive.
Fund management costs will reduce to negligible, also thanks to Polygon blockchain.
Gamla.fund empowers every individual to manage their finances by