When giving gives back, good things can happen
There’s a new entrant in the DeFi top five this week, and it comes in the shape of the universal basic income platform GoodDollar. A 78% increase in the number of wallets connected to the platform in the last 7-days has pushed it beyond Solana’s Raydium into the fourth spot. It’s also chasing Avalanche DeFi darling Trader Joe for the third spot.
While the other entrants in the top five have a strong focus on token swapping, liquidity provision, and staking, GoodDollar is quite different. Founded by Yoni Assia, the co-founder, and CEO of eToro, GoodDollar is a people-powered framework to generate, finance, and distribute global basic income via the GoodDollar G$ coin. GoodDollar’s goal is to provide a baseline standard of living and reduce wealth inequality by creating a universal basic income (UBI).
In the last 30 days, GoodDollar attracted almost 100,000 wallets that completed 1.38 million transactions, generating $2.8 million in volume. These figures represent over 100% growth for GoodDollar in the last 30 days in both metrics. Showing that users connect their wallets and then follow through with a deposit. Helping GoodDollar climb into the list of top five DeFi protocols at writing.
More notably, perhaps, this is the first time a Fuse Network dapp has appeared this high in the DappRadar rankings. This shows that unique platforms like GoodDollar can help networks like Fuse grow and attract more eyeballs.
How GoodDollar works
The GoodDollar economy revolves around two primary user types: Claimers and Supporters.
Claimers are individuals that claim a daily basic income in the form of G$ coins. Vitally, their unique identity must be verified.
Supporters are individuals or institutions that believe in basic income and bottom-up growth. They fund the supply of G$ coins through staking their capital to support the GoodDollar economy. They do this through committing and locking funds or staking as it has become known to various third-party interest-bearing protocols and mechanisms. Some G$ coins are minted and distributed as basic income to claimants every day.
The value in the GoodDollar reserve comes from the interest that is generated from supporters who stake cryptocurrencies in decentralized third-party protocols. Through the amassed reserve interest, G$ coins are minted. They are used to pay supporters market-rate interest payments, while a daily amount of G$ coins is set aside to be distributed as basic income. The system is built to accommodate scale, whereby the value and utility of the G$ coin to its holders increases as more people and merchants join the GoodDollar network.
Universal Basic income
The idea of a universal basic income has long been discussed. Except previously, there appeared to be no complete infrastructure to deliver such an innovation. As more countries explore the idea seriously, the frameworks seem to be in place to now deliver on old plans. In essence, furlough packages rolled out in countries like the UK amidst the pandemic went some way to test the idea in the wild.
Now, amidst a humanitarian crisis in Ukraine, platforms like GoodDollar could find more relevance. With almost 1 million people displaced by the conflict thus far, financial support for individuals and families will be paramount to survival. We have already seen massive donations and charitable giving as the crypto and blockchain space rallies in support of Ukraine. However, collecting money is one thing. Ensuring it gets to the people that need it most is another challenge entirely. One that platforms like GoodDollar could rise to meet.
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, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, ATOM, and ADA.