Skip to content

Commit

Permalink
blog article created
Browse files Browse the repository at this point in the history
  • Loading branch information
Walodja1987 committed Mar 2, 2024
1 parent b6b9557 commit 500b42e
Show file tree
Hide file tree
Showing 10 changed files with 176 additions and 0 deletions.
170 changes: 170 additions & 0 deletions packages/website/_posts/diva-conditional-donations-pastoralists-3.mdx
Original file line number Diff line number Diff line change
@@ -0,0 +1,170 @@
---
title: Empowering pastoralists in Kenya - The third DIVA Donate campaign
description: Empowering pastoralists in Kenya - The third DIVA Donate campaign
date: 2024-03-02T23:37:00.284Z
coverImage: pastoralists_mar_may_2024.jpg
coverImageDescription: Pastoralists
coverImageWidth: 900
coverImageHeight: 628
featured: true
author: Walodja1987
---

Following the successful conditional donation campaign for the Oct-Nov-Dec 2023 rainy season in collaboration with Mercy Corps Ventures,
we are excited to announce the launch of the third pilot campaign under the DIVA Donate initiative. Building upon our experiences and
the insights gained from the previous campaigns, this new campaign introduces a more robust NDVI metric that corrects for cloud coverage
and atmospheric contamination and tests the outcome reporting via the decentralized Tellor oracle system.

Let’s dive in.

## ✨ About the campaign

In our third campaign, we remain dedicated to providing anticipatory cash transfers to pastoralist communities in Kenya, which are disproportionately affected by
climate-change-induced drought.

The campaign’s objective is to assess vegetation health using the [Normalized Difference Vegetation Index](https://de.wikipedia.org/wiki/Normalized_Difference_Vegetation_Index) (NDVI)
following the March-April-May 2024 rainy season and disburse funds to participating pastoralists if the NDVI at the end of this period suggests insufficient vegetation to support
livestock during the upcoming dry season.

Given a more focused fundraising target of $10’000, compared to $25’000 in the previous campaign, the campaign concentrates on Kajiado county solely. This region was a
beneficiary in the last campaign and received 16.4% of the contributed funds.

## 📊 Enhanced NDVI metric

The NDVI, sourced from satellite imagery, remains our key metric to evaluate the vegetation health on the ground. This time, however, we are utilizing a smoothed dataset from the
[USGS Famine Early Warning System Network (FEWS)](https://earlywarning.usgs.gov/fews/product/902#documentation) that corrects for cloud coverage and atmospheric contamination.

By leveraging this enhanced dataset, we can directly use the NDVI values recorded at the end of the observation period, eliminating the need for average calculations to
address the problem of contamination. The switch to this new dataset is a response to our last campaign's experience, where relying on average NDVI values led to skewed
outcomes due to the influence of outliers. A comprehensive analysis and the key learnings from the previous pilot campaign is still being finalized and will be published
in a separate article.

<p align="center">
<img src="/images/posts/kajiado_county_location.jpg" />
</p>

## 🔮 Outcome reporting

The reliability of the data reporting system is of utmost importance. Given the public availability of the FEWS dataset, we are adopting Tellor Oracle,
a decentralized system that allows smart contracts to securely and reliably access data from off-chain sources. Tellor uses a decentralized network of
staked reporters to provide this data, ensuring network integrity and discouraging false reporting. In addition, by decentralizing the data provision,
we effectively eliminate the risk of a single point of failure, ensuring the system's resilience and reliability.

We will release a comprehensive guide specifically for Tellor reporters over the coming weeks, detailing the process for data retrieval and reporting.

## 🧑‍🎓 Payoff calibration

The payoff calibration process involves identifying the NDVI thresholds indicative of drought conditions to trigger disbursements to pastoralists.
The first step is to look at the NDVI data. Below chart shows the FEWS NDVI data for Kajiado county, updated every 5 days and covering the last 12 years.

<p align="center">
<img src="/images/posts/pastoralists_3_historical_data.jpg" />
</p>
_Source: [FEWS](https://earlywarning.usgs.gov/fews/ewx/index.html)_

The chart illustrates a recurring pattern: an increase in NDVI during the March-April-May rainy season, indicating improved vegetation,
followed by a decline until the end of September as the dry season progresses. Low NDVI values at the end of May imply reduced fodder
for pastoralists' livestock, forecasting tougher survival conditions through the dry months.

The chart highlights the NDVI values on 31 May for the last 12 years. The values vary between 0.45 in 2014, and 0.74 in 2018, with an
average NDVI value of 0.59. Without additional information, it is not possible to tell whether 0.45 represents a low or high level.

To make this assessment, we have leveraged the Vegetation Condition Index (VCI) maps published by the
[National Drought Management Authority (NDMA)](http://knowledgeweb.ndma.go.ke/Public/Resources/ResourceDetails.aspx?doc=3e0a4f40-b6a7-4393-9296-be1b2a972e73) in their monthly county reports.

<p align="center">
<img src="/images/posts/vci_kajiado.jpg" />
</p>
_Source: [Kajiado DEW Bulletin-December 2023](http://knowledgeweb.ndma.go.ke/Public/Resources/ResourceDetails.aspx?doc=3e0a4f40-b6a7-4393-9296-be1b2a972e73)_

The VCI measures the average NDVI over a 3-month period, mapping the current vegetation health to its historical range, expressed as a percentage from
0% to 100%. Lower VCI values indicate that vegetation health is near the historical minimum, whereas higher values indicate levels closer to the
historical maximum. More specifically, VCI values below 20% mark severe drought conditions (highlighted by a red box), values between 20% and 35%
indicate moderate drought (highlighted by a yellow box), and values above 35% reflect normal to optimal vegetation conditions (highlighted by a green box).

The presence of yellow or red boxes during the dry season months June, July, August, and September, suggests insufficient vegetation build-up during the
preceding rainy season.

With this approach, we identify 2009, 2011, 2014, 2017 and 2022 as the years that experienced drought conditions. Specifically, we can see moderate
drought conditions in 2014, 2017 and 2022 associated with NDVI levels of 0.45, 0.50, and 0.49, respectively, by the end of May. For the years 2009
and 2011 no specific data is available, however, the presence of red boxes suggests that NDVI levels must have been even lower. Based on these
insights, we have set a full fund release for NDVI levels at or below 0.50.

To create a more equitable payout structure, we implemented a linearly increasing payout profile, starting at 0.57, slightly below the 2012-2023
average of 0.59. Historically, this selected payout structure would have distributed 100% of the contributed funds in 3 out of 12 cases and 0%
in 7 out of 12 cases, underscoring the need-based approach. In the remaining scenarios, the payout would have fallen within a range of 0% to 100%,
following the linear payout curve.

The chosen payout profile for the campaign is depicted below (note that the NDVI value was shifted by +1 for technical reasons):

<p align="center">
<img src="/images/posts/payoff_profile_pastoralists_mar_may_2024.png" />
</p>

## ♻️ Recycling contributions

Any unreleased funds contributed by the DIVA Donate team to the previous campaign ($8’430) will be recycled and redirected to support the new campaign.
In addition, the DIVA delegate has committed himself to contribute the fees withheld by DIVA Protocol at the time of payout claim during the previous
campaign (~$50) to the new campaign, thereby emphasizing the flexibility inherent in DIVA Protocol‘s governance model.

Participants from the prior campaign are encouraged to claim any unreleased funds and amplify their impact by supporting the new campaign. If you
haven’t claimed the funds from the previous campaign yet, learn how to do it in [this video](https://www.loom.com/share/6a37d6ac32034af4a128308c1a56f789).

## 🏆 Rewards

Consistent with previous campaigns, participants will receive a digital certificate (POAP) to commemorate their contribution. Donations of $75 or
more will receive the golden-ring POAP. Smaller contributions will be rewarded with the silver POAP.

<p align="center">
<img src="/images/posts/Front - Gold (1).png" style={{ width: '45%', height: 'auto', display: 'inline-block', padding: '20px' }}/>
<img src="/images/posts/Front - Silver (1).png" style={{ width: '45%', height: 'auto', display: 'inline-block', padding: '20px' }}/>
</p>

## 🛠️ Technical campaign details

Below are the technical details of the campaign setup, enabling everyone to monitor the fund flows and the reporting process on the Polygon blockchain:
* Donor token: [0xF253278A45fD1EB0F2B16260C9314b8740Fa94cf](https://polygonscan.com/address/0xF253278A45fD1EB0F2B16260C9314b8740Fa94cf)
* Beneficiary token: [0xC6426753264774EAB988d91DD29CfE6a626b14a0](https://polygonscan.com/address/0xC6426753264774EAB988d91DD29CfE6a626b14a0)
* PoolId: [0x8c85108a28a163d1722c2140eea57f9d1cb7f83f69dfc04eb0d9e51298dea2b6](https://polygonscan.com/tx/0x6090358798710828fa20c63f42fcf4be3cc8f91e90e1aa31ac7ced48e0d17e60)
* [Reference asset description stored on IPFS](https://bafybeibdjwmxn3r7cxx4bqqolqp3qib6l2co6mdrqh46ry2ab7cgbsamtu.ipfs.w3s.link/tellor_reference_asset_kajiado.json)
* Tellor oracle adapter: [0x7950DB13cc37774614B0AA406e42a4C4f0BF26a6](https://polygonscan.com/address/0x7950DB13cc37774614B0AA406e42a4C4f0BF26a6)

The cost for [creating the programmatic escrow](https://polygonscan.com/tx/0x6090358798710828fa20c63f42fcf4be3cc8f91e90e1aa31ac7ced48e0d17e60) on DIVA Protocol on the Polygon network amounted to $0.06.

## 🔢 DIVA Donate Statistics

Below provides the key DIVA Donate statistics since inception:
* Number campaigns: 2
* Contributed: $25’602
* Donated: $11’744 (45.9%)

## 💎 Join the cause

The DIVA Donate team is actively seeking partners who share our vision of harnessing blockchain technology to launch parametric conditional donation campaigns.
Given the versatile nature of DIVA Protocol, the donation payout can be linked to virtually any metric. If you represent a charity or NGO passionate about this
concept, [reach out](http://[email protected]) and join forces to provide more efficient and effective support to vulnerable communities worldwide.

## 🌔 Conclusion

The third campaign emphasizes our commitment to mitigate the impact of climate change on pastoralist communities in Kenya. By enhancing the NDVI metric,
we aim to provide more precise and impactful support. The incorporation of the Tellor oracle for outcome reporting reflects our dedication to improving
the reliability of our solution. We are grateful for the continued support of our donors and partners and look forward to making a meaningful difference
in the lives of those we serve. Together, we can continue to empower communities and foster resilience against the challenges posed by climate change.

## 🍀 About DIVA Donate

DIVA Donate is an innovative platform that leverages blockchain technology to enable parametric conditional donations. It is a
joint initiative between three entities united around the mission of empowering vulnerable communities affected by climate change:
1. [**Fortune Credit**](https://fortunecredit.co.ke/): a microfinance institution in Kenya which provides credit, insurance & other financial services to 50k+ customers including small-holder farmers & pastoralists,
2. [**Shamba Network**](https://shamba.network/): an oracle which brings ecological/remotely-sensed data on-chain, and
3. [**DIVA Technologies AG**](https://www.divaprotocol.io/): developer of DIVA Protocol, a smart contract-based system for creating and managing custom derivative contracts peer-to-peer.

## 🔗 Links

* DIVA Donate: [Website](https://www.divadonate.xyz/) | [Twitter](https://twitter.com/DIVADonate_xyz)
* DIVA Protocol: [Website](https://www.divaprotocol.io/) | [Github](https://github.com/divaprotocol/diva-protocol-v1) | [Docs](https://docs.divaprotocol.io/) | [Twitter](https://twitter.com/divaprotocol_io) | [Discord](https://discord.gg/8fAvUspmv3)
* Fortune Connect: [Website](https://fortunecredit.co.ke/) | [Twitter](https://twitter.com/fortuneconnectk)
* Shamba Network: [Website](https://shamba.network/) | [Twitter](https://twitter.com/shambanetwork)



Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Original file line number Diff line number Diff line change
@@ -0,0 +1,3 @@
[ZoneTransfer]
ZoneId=3
HostUrl=https://files.slack.com/files-pri/T02MQL62QSG-F06M0DA4C2C/download/front_-_gold.png?origin_team=T02MQL62QSG
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Original file line number Diff line number Diff line change
@@ -0,0 +1,3 @@
[ZoneTransfer]
ZoneId=3
HostUrl=https://files.slack.com/files-pri/T02MQL62QSG-F06LE3MCC84/download/front_-_silver.png?origin_team=T02MQL62QSG
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.
Loading
Sorry, something went wrong. Reload?
Sorry, we cannot display this file.
Sorry, this file is invalid so it cannot be displayed.

0 comments on commit 500b42e

Please sign in to comment.