Stellar Development Foundation published a method for judging Web3 project effectiveness in Colombia, Argentina, Kenya, the Philippines, and other developing markets.The Stellar Development Foundation, developers of the Stellar network, released a financial inclusion framework for judging the efficacy of emerging market blockchain projects.
To help foster this governance, the two teams proposed a framework to judge whether a project will likely promote financial inclusion. The framework consists of four parameters: access, quality, trust and usage. Each of these parameters is broken down into further sub-parameters. For example, “access” is broken down further into affordability, connectivity, and ease of initiation.
Each explanation of a sub-parameter includes a proposed way of measuring it. For example, Stellar and PwC list “# of CICO [cash in/cash out] locations within relevant target population region” as a way of measuring the “connectivity” metric. This is intended to help ensure that projects can scientifically measure their effectiveness instead of relying on guesswork.
The teams also suggested a four-phase assessment process that projects should undergo to solve a financial inclusion problem. The project should identify a solution, target population, and relevant jurisdiction in the first phase. In phase 2, they should identify barriers preventing the target population from receiving financial services. In phase 3, they should use “level charts and guidance” to determine the biggest roadblocks to onboarding users.
The second effective solution they found was savings. The team claimed that a stablecoin application in Argentina allows users to invest in an inflation-resistant digital asset, helping them to preserve their wealth when they otherwise would have lost it.Stellar network has been on the forefront of payment inclusion in underserved financial markets.