Indonesia continues to face significant challenges in organic waste management, contributing to environmental pollution and public health risks. While the existing E-waste bank system incentivizes recycling, it excludes organic waste, which accounts for over 50% of household waste. This study aims to design a smart E-organic waste bank system that integrates Internet of Things (IoT) technology and Black Soldier Fly (BSF) maggot bioconversion to provide real-time waste tracking and equitable reward mechanisms. Using a Design-Based Research (DBR) approach, the system was conceptualized with ESP32 microcontrollers paired with DHT22 humidity sensors, and load cells modules to measure environmental parameters and waste volume in real-time. Cloud-based architecture supports data storage and dashboard monitoring for administrators. The proposed system offers a scalable, low-cost solution that empowers communities to participate in circular economic practices. Findings suggest that integrating IoT with biological waste processing enhances transparency, user motivation, and environmental impact, providing a foundational model for future implementation and policy innovation. This study lays a robust foundation for embedding organic waste management into smart city frameworks, advancing both environmental sustainability and resource efficiency across the region.