GoodDollarV2 launches the epoch of DeFi for Good

With the introduction of V2, the world’s first decentralized impact economy passes into the hands of its community equipped with all the tools necessary to realize the vision of offering a crypto UBI to all. 

Today we celebrate the launch of GoodDollarV2 – the dawn of a new era for GoodDollar and for decentralized finance as a whole. 

TLDR: 

• The GoodDollar protocol provides a new standard for crypto universal basic income (UBI) in G$ token, governed by its members by way of the #GoodDAO. 
  
• GoodDollar leverages yield farming and liquidity mining rewards to encourage capital to flow towards the protocol, enabling the sustainable generation of UBI.
  
• GoodDollar V2 is a smart contract upgrade to expand functionality and open-source launch of a protocol user interface, deployed by community members.
  
• GoodDollarV2 enables members to stake in Compound or Aave and earn #GoodRewards while at the same time funding #CryptoUBI for all.
  
• Now, members can buy and sell G$ directly in the GoodDollar Reserve, a key feature that enables the economy to scale.
  
• GoodDollarV2 introduces a new governance model with the launch of the community-owned GoodDAO, which will determine the protocol’s future direction. 

What is the GoodDollar protocol? 

The GoodDollar protocol is a community-driven, distributed framework designed to generate, fund, and distribute a global basic income in the form of the G$ token. With GoodDollar, anyone anywhere with access to a smartphone can join the growing digital economy and learn how to use cryptocurrency. GoodDollar is founded on the premise that open financial infrastructure is the only way to onramp financially underserved populations into the digital economy. 

Since the initiation of the Proof of Concept in September 2020, the GoodDollar protocol has delivered free cryptocurrency into the hands (okay, phones) of nearly 300,000 people in more than 183 countries.

How does GoodDollar work? 

GoodDollar leverages new protocols and smart contracts across the ecosystem to deliver a basic income in the form of G$, an ERC-20 digital asset built on the Ethereum blockchain that operates within the emerging realm of decentralized and open finance and is engineered to appreciate in value as its supply increases.

As a result of its ability to act as a wrapper of other protocols, GoodDollar is able to leverage yield farming and liquidity mining rewards to encourage capital to flow into the GoodDollar Reserve, where it enables sustainable minting of G$. 

DeFi users who support the GoodDollar mission can make capital deposits in a third-party protocol they select via a collection of smart contracts called the GoodDollar Trust. They then instruct their chosen protocol to channel any returns into the GoodDollar Reserve to fund the generation of new G$. All G$ minted through this mechanism are either used to reward stakers or distributed as UBI to recipients on the Fuse blockchain, a low-cost L2 solution.

In September 2020, a limited version of the protocol launched as a PoC with one staker: eToro, GoodDollar’s benefactor and corporate sponsor. Based on eToro’s US$58,000 stake, we were able to validate the key elements of the system: The money flow, the demand, and the end-user wallet dapp. Even given those early limitations, the PoC exceeded all expectations and has already built a membership that spans the globe and tops 300,000. 

What Changes With GoodDollarV2?

GoodDollarV2 opens the GoodDollar protocol to the world. With this key contract upgrade, any user in any country can support the UBI mission in a range of ways we will outline below. More importantly, V2 ushers in a critical change in governance as we pass control of the protocol to a new community-led decentralized organization, the #GoodDAO. The launch also includes a major upgrade in functionality, along with the deployment of an open-source interface that can be deployed by community members. 

Read on to learn more about this exciting new chapter in the GoodDollar saga!

Staking4all with V2

With the launch of V2, anyone in the world can do well for themselves while doing good for others by staking with GoodDollar. Thanks to the wrapping function outlined above, users can safely stake capital and help further the goal of opening the digital economy up to as many as 1 billion financially underserved individuals. 

Supporters are rewarded for their commitment in three ways: 

• with G$s equal to the interest generated by their stakes;
  
• with GOOD governance tokens that give them a say in the direction of GoodDollar;
  
• with what we call Social APY (annual percentage yield): a read-out on the precise impact of their contribution on the GoodDollar system.

Initial settings for #GoodRewards:

• CDAI on @ Compound: 138.88 G$s per block = 291M G$s per year
  
• USDC on @ aave 69.44 G$s per block = 145.5M G$s per year

Learn more about staking rewards.

Buy and sell crypto through the GoodDollar Reserve

Members will now be able to buy and sell G$ directly to and from the GoodDollar Reserve contract. This healthy activity grows the liquidity of the ecosystem and increases the impact of the UBI GoodDollar delivers. Two key enhancements to the #GoodDollar Reserve AMM contract support this change:

• The introduction of a 3% “exit contribution” fee on all sales of G$ into the #GoodDollar Reserve in exchange for supported cryptocurrencies. All fees go back into the #GoodDollar Reserve and grow the value of the overall economy.
  
• The creation of a new ERC20 token – G$X – that lets people buy and sell G$ to the Reserve without a fee. All those who buy G$ from the reserve will also receive an equal number of G$X.

Learn more about the GoodDollar Reserve.

Passing the torch to the GoodDAO 

GoodDollarV2 ushers in a major change in the protocol’s governance: the passage of control to the newly minted GoodDAO. At last, the world’s first decentralized impact economy will have the truly decentralized governance it was always meant to have.

The distribution of non-transferrable GOOD tokens to the entire GoodDollar community – both those who claim G$ each day and those who contribute to its generation – means that all stakeholders can make and vote on proposals that affect the protocol’s future. And because GOOD has no market value, the GoodDAO will always be governed by those with the greatest involvement, not those with the largest stockpile of wealth.

Learn more about the GoodDAO.

A New Dawn for DeFi 

GoodDollarV2 marks a new period of purpose for DeFi itself. With GoodDollar, the open and decentralized financial infrastructure that has helped millions make bumper profits will now help foster financial inclusion and empowerment across the planet. And with GoodDollar, users can safely earn returns and rewards while doing good for others.

The creativity and dynamism of the GoodDollar community inspire the team each and every day. We can’t wait to see where they take it in the future.

So please join the UBI journey and do some good with GoodDollar!