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Walodja1987 committed Mar 2, 2024
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author: Walodja1987
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Following the successful conditional donation campaign for the Oct-Nov-Dec 2023 rainy season in collaboration with Mercy Corps Ventures,
Following the successful conditional donation campaign for the October-November-December 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.
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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
outcomes due to the influence of outliers. A comprehensive analysis and the key learnings from the previous pilot campaign are still being finalized and will be published
in a separate article.

<p align="center">
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## 🔮 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,
The reliability of the data reporting system is of utmost importance. In this campaign, 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.
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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%,
in 7 out of 12 cases, underscoring the need-based approach. In the remaining two cases, 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):
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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.
2. [**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.
3. [**Shamba Network**](https://shamba.network/): an oracle which brings ecological/remotely-sensed data on-chain, and

## 🔗 Links

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