Ethereum Staking Initiative in Rwanda

Context

Reliable internet connectivity remains a persistent barrier for education in under-resourced or rural settings. While initial infrastructure investments help connect schools, covering recurring costs such as broadband service remains a major challenge. In many low-income and fragile settings, ongoing connectivity costs are a major obstacle to digital learning, limiting students’ access to online resources, platforms, and skills essential for the 21st century. In Rwanda, over 1,700 schools and 1.3 million students lack consistent internet access as of 2022. Traditional donation models often fall short of meeting these long-term needs, prompting innovative strategies that combine digital technology and social impact financing.

Solution

Giga, a UNICEF and ITU initiative, in partnership with the Ethereum Foundation and the Government of Rwanda, launched a pioneering Ethereum staking model to sustainably finance school internet connectivity. Instead of one-time donations, crypto holders stake ETH via Giga’s platform using Lido’s liquid staking technology, redirecting their staking rewards to fund school connectivity. Participants retain their original assets and donate only the yield generated. The mechanism is transparent, on-chain, and secure, creating a continuous stream of funding. LaunchNodes provides the technical infrastructure, while UNICEF Switzerland and Liechtenstein support institutional partnerships and compliance.

Insights

The Rwanda pilot demonstrated the technical viability of the model, with staking rewards covering $5,600 in internet fees, enough to provide reliable connectivity for one school. Building on this, the initiative now enables broader participation from ETH holders globally. While long-term outcomes such as improved learning or digital inclusion require evaluation, the platform has the potential to generate sustained, reliable funding for education. By transforming idle crypto assets into social impact tools, Giga’s model represents a new form of digital philanthropy capable of supporting global school connectivity goals.

The solution leverages decentralized finance to convert idle crypto assets into a continuous funding stream, offering an innovative, low-cost, and transparent alternative to traditional aid models. This model is not bound by geography or local investor participation, as its strength lies in the decentralized nature of blockchain technology. While technically viable and sustainable, success and scalability are heavily dependent on user uptake and regulatory clarity. Potential risks include volatility in staking rewards, an unpredictable policy environment, and overreliance on a single blockchain platform. This type of financing is replicable using other proof-of-stake blockchains with staking and smart contract capabilities. Broader adoption would benefit from increased digital literacy and regulatory clarity, but the mechanism offers a promising shift in impact financing. Long-term sustainability depends on diversifying contributors, maintaining donor trust, and embedding such mechanisms into broader education financing frameworks.