The Wikimedia Foundation is one of the biggest not-for-profit organizations in the world. Over the past few weeks, Wikimedia editors, members, and contributors have been debating over accepting donations in cryptocurrencies. According to a section of Wikimedia contributors, accepting donations in cryptocurrencies goes against the vision of Wikimedia. The organization claims to be working towards a sustainable future. Proof-of-work mining, a very important component of cryptocurrencies like Bitcoin, is an environmentally unsustainable practice. Climate change activists have spoken against Bitcoin mining time and again, citing the harmful effect it has on carbon offset goals.
When China banned cryptocurrencies in 2021, it cited the unsustainability of the system as a major reason. Bitcoin mining has been discussed in various forums and conferences, and people are sharply divided on it. While some feel there are workarounds to the issue, others are of the opinion that Bitcoin mining can never become eco-friendly.
In such a scenario, proof-of-stake mining has come up as the most promising alternative. Ether and all Ethereum-based tokens follow this protocol instead of proof-of-work. It is a much more energy-efficient method and does not demand the same amount of energy. These issues led many to believe that Wikimedia should stop accepting donations in crypto since it goes against the vision of the foundation. However, after intense rounds of debates and discussions, the Wikimedia Foundation has decided to continue accepting donations in crypto. The foundation believes that it should be more open to changes and more inclusive. As the situation stands now, nothing would change about how donors can transfer funds to the Wikimedia Foundation through cryptocurrencies.
