How to Stake on Fuse to Support GoodDollar’s Digital Basic Income

Hadar Rottenberg Hadar Rottenberg

The number of GoodDollar daily active users is climbing. Ready to scale?

This past week we were thrilled to see GoodDollar ranked as the #3 project by dapp.com according to daily active users, with over 36,000 users interacting daily with the GoodDollar smart contracts. This shows the market is hungry to embrace and experiment with real, free digital currency.

Now the question remains, how do we scale the system to support more digital currency, for more people?

GoodDollar protocol creates a new standard for the decentralized creation and distribution of free digital currency. How do we do it? A quick recap: GoodDollar leverages autonomous decentralized finance protocols that sustainably generate yield; these funds are used to then collateralize the monetary reserve backing the GoodDollar (G$) token. And what has been launched so far

To kickstart the system, eToro played the role as our first supporter: they “staked for good” 56,000 DAI (which is valued at US$56,000). That 56,000 DAI was locked to GoodDollar’s staking contract (“GoodStaking”), which was then staked to Compound and, in turn, resulted in basic income distribution in GoodDollars. To date, eToro’s stake of 56,000 DAI has yielded in the minting of over $5,000 USD worth of GoodDollars (over 100 million GoodDollar tokens have been minted to date. As we release staking capabilities over the next few months, we look forward to seeing the amount “staked for good” increase, as well as expanding the number of protocols GoodDollar integrates with.

Using Fuse’s “Proof of Stake” to Mint Digital Basic Income

More recently, we have integrated with Fuse blockchain’s proof of stake protocol, which shows another cool way of how we can use decentralized smart contracts to mint digital basic income.

Of course, Fuse is the blockchain that GoodDollar operates its basic income distribution on; with transaction fees that cost less than 1 cent, GoodDollar foundation  is able to fully subsidize gas and transaction fees for wallet users. Fuse is a Proof of Stake blockchain. On Proof of Stake blockchains, miners, also called validators, lock their native-blockchain tokens to earn block rewards and provide consensus, with the premise that validators won’t cheat because it will harm the value of their locked tokens (and is less costly than Proof of Work consensus mechanisms).

Fuse’s staking and delegation consensus mechanism occurs fully on-chain, which means that we can use these smart contracts to build a 100% decentralized basic income distribution protocol without a trusted 3rd party. This stands out from other POS blockchains such as Polkadot or Tron where you can not automate the staking and rewards collections via smart contracts.

So, how does it work?

1. Basic income supporters who hold Fuse can lock their Fuse tokens to the GoodDollar FuseStaking V3 contract. These tokens still belong to you, and you can always withdraw your locked funds. Read on for step-by-step instructions.

2. Observe the GoodDollar FuseStaking smart contract on Fuse Explorer.

3. The FuseStaking smart contract then automatically delegates the Fuse tokens to one of the Fuse network validators.

4. GoodDollar’s FuseStaking contract now earns additional Fuse staking rewards every day.

5. Every day the Fuse tokens received as staking rewards are used to purchase additional GoodDollar tokens via FuseSwap, a decentralized exchange (DEX — Uniswap’s alternative on Fuse). These GoodDollar tokens are then transferred directly to the GoodDollar UBI Smart Contract, the contract that is used to deliver and distribute GoodDollars daily to users.  

The GoodDollar Fuse Staking model

All of this happens 100% on-chain! So you sustainably support GoodDollar digital basic income in a completely trustless way!

The implications of building a trust-less universal basic income scheme are transformational, with massive potential. For example, let’s take the current statistics from stakingrewards.com, which shows $50 billion dollars locked, generating an average yield of 20% – that’s $10 billion dollars.  If only 10% of this yield was contributed to supporting a basic income system, we could lift 1.5 million people out of extreme poverty!

It’s worth thinking of all of the emerging de-fi market (already $40 billion) and all of the speculation that is driving profits and high returns that are going to a select few… but what if those benefits were distributed to more users? What impact would that have on the “crypto mass adoption” that we are all hungry to see? I believe that the most meaningful, impactful and fast way to drive mass adoption of decentralized, digital currencies is by simply providing more ways to support digital basic income systems. It is by giving real digital money away.

So, ready to support the GoodDollar protocol and mint more G$ for all? 

Here are four ways you can get started:

  1. Stake your Fuse tokens via the FuseStaking V3 smart contract by following these steps:

    – Go to myetherwallet.com and ‘create a new wallet’ or ‘connect existing wallet’ to access the contract
    – From the left-side menu, go to ‘Contract’ and select ‘Interact with Contract’
    – To interact with the contract, enter the ‘Contract Address’ 0xA199F0C353E25AdF022378B0c208D600f39a6505 and copy the ABI from the FuseStaking V3 contract. (You can select the ‘Copy ABI’ button.)
    – Paste the ABI into ‘ABI/JSON Interface’ on myetherwallet.com.
    – You’re now interacting with this contract! Ready to stake? Select ‘stake‘ in the dropdown menu next to the contract address, and lock in your Fuse.
  2. Stake your DAI here, and 100% of the yield generated will be moved into the GoodReserve: https://etherscan.io/address/0xea12bb3917cf6ae2fde97ce4756177703426d41f#writeContract
  3. Donate via GoodDollar’s sustainable giving fund, which means your fund will be staked to generate GoodDollars, for forever. Simply transfer either ETH or DAI to the fund smart contract at: 0x93FB057EeC37aBc11D955d1C09e6A0d218F35CfF
  4. Observe the staking smart contract on Fuse Explorer. To stake your Fuse, follow the instructions for the FuseStaking V3 contract (above). https://explorer.fuse.io/address/0xA199F0C353E25AdF022378B0c208D600f39a6505/write-proxy

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