As I reflect on the state of Web3 in Honduras, I find myself grappling with a sense of disappointment. The potential for transformative change brought by blockchain technology and cryptocurrencies in our country has been met with inefficiencies in funding and limited adoption. In this personal account, I aim to provide an honest and informative overview of the challenges faced and the opportunities that lie ahead.

TL/DR:
Almost $300K in funding
1 real web3 project in Honduras
Scarce adoption

Funding Challenges and Centralization:

One aspect that has struck me is the centralized allocation of funding within the Ethereum Honduras community. While it is undeniable that they have received significant financial support, the distribution of resources within the country has been lacking. As a result, projects seeking to create meaningful adoption or empower community members through startups have been left underserved.

In my estimation, the Ethereum Honduras community has received close to $300k in funding. $200k confirmed by the founder via a tweet, not including grant funding received since late 2022 and other funds related to the planning of Eth LatAm which has been postponed to an unknown date in 2024. While these numbers might seem impressive at first glance, the centralization of funding and the lack of redistribution within the country have hindered its potential impact. This centralized approach mirrors the same structure employed by the Honduran government, which has historically hindered progress and kept Honduras lagging behind other Latin American countries. It is disheartening to witness these inefficiencies manifesting within the Web3 ecosystem, perpetuating the same problems we strive to overcome.\

Web3 Projects and Limited Adoption:

The scarcity of actual Web3 projects in Honduras adds to the challenges we face. The Ethereum Honduras community fragmented into three entities: Ethereum Tegucigalpa, Ethereum San Pedro Sula, and Ethereum La Ceiba. While this division may have been intended to optimize grant procurement by allowing each entity to apply as "nodes," it has resulted in diluted impact.

Presently, we have only a handful of notable projects attempting to make a mark in the Web3 space:

LaBitcoinera: the first Honduran company to offer buying and selling different crypto-currencies through ATMs in Honduras. They also organize meetups and create educational material.

AmityAge Academy - First Bitcoin Education Center in Honduras (Roatan). They mine Bitcoin in Paraguay to finance our educational activities. They’ve onboarded dozens of businesses on Roatan, hundreds of Hondurans to Bitcoin and do tons of community outreach.

HistoriadeHonduras.eth - Social Media accounts dedicated to proliferating Honduran history and culture. They host weekly spaces and recently began integrating POAP, NFTs, and blogs to gamify onboarding.

Powardt2thePeople - Incorporating children from the church “Sello de Dios” to Lego and STEM competitions. Unclear what is done by the project and what is a regular church activity. Founder is a core contributor to Ethereum Honduras and Eth Kipu.

SIDIT Protocol - A decentralized solution for the digitalization of the Honduras Fire Fighter reporting system that encourages transparency and efficiency. Participated in CLR Colombia despite no POW. Never used the funds or provided an update on the project. Founder is a core member of Ethereum Honduras and EthKipu



Blockeadas - Women in WEB3 project - Abandoned since 2022.

These are the few initiatives striving to promote adoption, educate the community, raise awareness, and explore the intersection of art and blockchain. However, the number of projects remains meager, and the adoption of cryptocurrencies by businesses in mainland Honduras, particularly in major cities, is yet to gain significant traction.

Web3beach - A coordiNATION dedicated to onboarding through social and environmental impact and creating s surplus of Public Goods to benefit communities they serve. Currently supporting projects in Honduras, Venezuela, Peru, Costa Rica, Brazil and Japan.

Web3 Workforce in Honduras:

Multiple core members of Ethereum Honduras work for the founder of Ethereum Honduras at Cryptex Finance, other employers include Obol and Scroll. This accounts for the majority of full time web3 workers in Honduras. Aproximately 10 in total.

Approximately another 10 people contribute to DAOs like H.E.R. DAO.

The Importance of Adoption and Onboarding:

For Web3 technologies to truly take root and benefit the people of Honduras, it is crucial to foster adoption and onboard businesses onto this transformative path. The reality is that the majority of Hondurans lack the means to accumulate or use cryptocurrencies as a store of wealth. To create meaningful adoption, we need businesses actively participating in the ecosystem, effectively generating circular crypto economies.

Personally, I have attempted to onboard businesses on the mainland, but their interest wanes due to the lack of substantial adoption and a supportive environment. While the Bay Islands have showcased more promising signs of adoption, the main cities of Honduras are yet to create a significant impact. This highlights the pressing need for targeted efforts to educate businesses and the general population about the benefits and potential of Web3 technologies.

Addressing Funding Inefficiencies:

To overcome the funding inefficiencies that plague the Web3 ecosystem in Honduras, it is vital to revisit the distribution of resources. Funds should be directed towards projects that aim to foster adoption, empower startups, and create meaningful change within communities. By decentralizing the allocation process, we can ensure that the potential of this technology is harnessed for the benefit of all Hondurans, rather than being concentrated in a select few entities.

The Web3 landscape in Honduras presents a mixture of disappointment and potential. The challenges of funding inefficiencies and limited adoption must be acknowledged and addressed. By advocating for decentralized and pluralistic funding allocation, promoting collaboration, fostering education, and onboarding businesses, we can pave the way for the meaningful adoption of Web3 technologies in Honduras. Let’s avoid repeating the mistakes of the past and create a future where the transformative power of this technology is harnessed to uplift communities and bridge the gaps that have held us back.

A message to all other LatAm contries: Do not make these same mistakes.