Bankless Card: the Affinity Card for DAOs | Project update with Al Mithani (aka Links) - Making Bank: A Black Flag DAO Podcast (formerly Bankless DAO) Recap

Podcast: Making Bank: A Black Flag DAO Podcast (formerly Bankless DAO)

Published: 2023-06-03

Duration: 37 min

Summary

In this episode, Al Mithani discusses the Bankless Card, designed to bridge the gap between Web3 and everyday transactions while supporting DAOs. The card aims to convert traditional spending into funding for decentralized organizations.

What Happened

The episode kicks off with host Drost welcoming Al Mithani, also known as Lynx, back to the show for an update on the Bankless Card project. Lynx explains that the Bankless Card is intended to bridge the user experience gap between Web3 and the real world. The goal is to create a way for DAOs to self-fund through community spending, making it easier for DAO contributors to support their organizations in a seamless manner.

Lynx emphasizes the importance of making the onboarding process smoother for users transitioning from Web2 to Web3. The Bankless Card is inspired by existing affinity card models, where users can earn rewards—like airline miles—while also providing financial support to their chosen DAOs. He notes that, while the card will involve collaboration with a bank, it will be a neobank, setting it apart from traditional banks that impose numerous fees. Instead, the Bankless Card aims to redirect the interchange fees from everyday purchases back into the DAO ecosystem, effectively allowing users to support causes they care about without additional effort.

Key Insights

Key Questions Answered

What is the purpose of the Bankless Card?

The Bankless Card is designed to bridge the UX gap between Web3 and the real world, enabling DAO contributors to support their organizations through everyday spending. Lynx explains that the card will allow users to funnel funds into DAOs, making it easier for individuals to contribute financially without requiring additional effort or time.

How does the Bankless Card support DAOs financially?

Every time a user swipes the Bankless Card, a portion of the interchange fees generated by that transaction will be directed back to the DAOs the user wishes to support. This model allows participants to support their favorite organizations through their usual spending habits, effectively turning everyday purchases into funding for their chosen DAOs.

What insights were gained from the survey conducted on the Bankless Card?

A survey revealed that approximately 77% of respondents expressed interest in using a card that supports their DAO. Lynx shared that the survey included qualitative data from hundreds of participants across at least a dozen DAOs, highlighting the importance of supporting their DAOs and the challenges they face in doing so.

How does the Bankless Card differ from traditional banking models?

While the Bankless Card requires collaboration with a bank to issue the cards, it will partner with a neobank instead of traditional banks. Lynx emphasized that unlike conventional banks that impose various fees, the Bankless Card aims to redirect funds from interchange fees back into the DAO ecosystem, allowing for a more beneficial financial relationship.

What is the emotional connection users have with their DAOs?

Lynx discusses that many users have a strong emotional attachment to their DAOs, likening it to the camaraderie found in purpose-driven startups. He notes that while users may not always have the time or resources to support their DAOs, the desire to contribute is significant. The Bankless Card aims to facilitate this support effortlessly, allowing users to align their spending with their values.