When giving gives back, good things can happen
Leading Fuse Network dapp GoodDollar is making waves this week as it attracted 175% more active wallets to its platform. The platform saw lots of growth as investors look for alternative stores of value and passive income opportunities amidst tumbling crypto prices.
GoodDollar is a people-powered framework, founded by Yoni Assia, the co-founder, and CEO of eToro. It aims to generate, finance, and distribute global basic income via the GoodDollar G$ coin.
Week over week, the platform attracted 175% more active wallets, taking the figure of connected users to over 61,000, driving over $2.4 million through GoodDollar’s smart contracts. There is a slight decrease in transactions week over week alongside increasing numbers of wallets connecting to the platform. Another reason for the increase in wallets connecting can be the airdrop currently active on the platform. As in order to check eligibility, a user must first connect their wallet.
GoodDollar at a glance
The GoodDollar economy revolves around two primary user types: Claimers and Supporters. Claimers are individuals that claim a daily basic income in the form of G$ coins. Vitally, their unique identity must be verified. Supporters are individuals or institutions that believe in a basic universal income and bottom-up growth. They fund the supply of G$ coins by staking their capital on platforms like AAVE and MakerDao to support the GoodDollar economy.
- Third-party protocols generate value in a supported cryptocurrency such as DAI or ETH, and that interest is moved into GoodReserve.
- The number of G$ coins minted is determined by the GoodDollar’s leverage relative to the value of interest locked in the GoodReserve.
- Initially, every G$ coin is fully collateralized in a supported cryptocurrency on a one-to-one ratio. For example, every 1 DAI moved into the reserve produces G$ coins in equal value.
- G$ coins are distributed back to supporters in value equal to their interest in the third-party protocols and mechanisms. The reserve ratio is expected to decline over time, minting more G$ coins relative to the crypto assets in reserve.
- The remaining balance of G$ coins minted is distributed equally daily as basic income to claimers, divided evenly between the number of claimants that issue a claim on a given day.
Claimers can access and claim G$ coins initially through the GoodDollar Wallet, though ultimately, G$ coins will be available through a variety of endpoints. The GoodDollar Wallet requires claimers to identify and occasionally re-verify themselves to restrict fraud and system abuse.
Who’s claiming UBI?
A snapshot of the past month gives a solid understanding of where the Universal Basic Income (UBI) is flowing. Vietnam, Nigeria, and India are the three leading countries, totaling $4.5 million in claims. It’s also interesting to see the claimers’ demographics, as those having been in the blockchain space a while will generally see familiar usage demographics to that of crypto, regarding age and sex.
When giving gives back
It’s important to note that while the dapp is set up to benefit those who need it most, it’s not an entirely selfless act by stakers as they still receive a share of the percentage rewards. In this way, wealthier individuals and organizations with belief in the project can get involved without giving up all the rewards, just a portion of them. It should provide stakers with a feeling of doing good and peace of mind that their assets are working hard for them. Furthermore, the platform offers a way for organizations to do good in the world, enabling them to spin positive PR stories around their brand. Either way, UBI is still distributed to those who need it most.
GoodDollar is the most used dapp on the Fuse Network right now. Furthermore, surging activity has helped the platform climb the DeFi ranks on DappRadar. In turn, exposing it to more people. At the time of writing, it sits in 6th position, between far more established multichain DeFi platforms 1inch and Sushi.
GoodDollar’s trading volume is way below its competitors, but the number of wallets connecting to the dapp is very competitive. It appears that nobody can catch BSC-based DEX PancakeSwap, but GoodDollar is showing signs of a solid runway to break into the top 5.
Fuse making waves
The Fuse ecosystem of dapps is growing at an impressive pace, and as shown below, when one dapp in the ecosystem wins, it can pull the rest along for the ride, as more people are exposed to Fuse dapps.
As mentioned, GoodDollar is the clear leader on Fuse right now, but other dapps all show growth signals. Inbound NFT and GameFi offers are sure to add more clout to the growing network as play-to-earn gaming continues to dominate the headlines in 2022.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, AGIX, HEX, LINK, GRT, CRO, OMI, IMMUTABLE X, ENS, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, ATOM, and ADA.