DAISY Global | Lower Transaction Costs

 Decentralized crowdfunding often results in lower transaction costs, providing significant financial advantages to both project creators and backers. Traditional crowdfunding platforms typically charge hefty fees, which can significantly eat into the funds raised. These fees may cover platform maintenance, marketing, or payment processing, but they can be prohibitively expensive, especially for small projects.

 

Leaders at decentralized platforms such as DAISY Global emphasize that by leveraging blockchain technology, decentralized crowdfunding platforms can drastically reduce or even eliminate these fees. Since these platforms operate on peer-to-peer networks without a central authority, the need for intermediaries is minimized. Consequently, project creators retain a larger percentage of the funds they raise, allowing them to allocate resources more effectively toward their projects.

 

Moreover, lower transaction costs encourage smaller backers to participate in funding initiatives. In conventional systems, high fees can discourage individuals from contributing to projects, particularly if they only intend to make small investments. In decentralized crowdfunding, the reduced fees make it feasible for backers to support projects at various levels, fostering a culture of micro-investing. This democratization of funding encourages participation from a broader demographic, further enhancing the potential for innovative projects to gain traction.