- Social asset trading platform, eToro releases a not-for-profit crypto-backed stablecoin, GoodDollar, that allows registered users to receive free basic income straight to their wallet.
- The token will leverage decentralized finance and the raging “yield farming” techniques to produce the $G stablecoin and hand it out as universal basic income (UBI) in a bid to promote financial inclusion.
eToro announced the GoodDollar.org project would entail users staking their assets into a pool and yield farm on popular DeFi projects such as Compound and Aave. The protocol creates an ongoing money flow of basic income that is given away to users.
The payout will be made in the $G stablecoin and distributed as free income to account holders. At launch, the $G stablecoin is backed by Maker-minted DAI with a plan to add a basket of crypto collateral to back the stablecoin.
Explaining the reasons for the launch of the Universal Basic income project, the CEO and Founder of eToro & GoodDollar, Yoni Assia, stated his goals were to solve the widening economic disparity and lack of transparency in the current financial system using the $G stablecoin.
“There are two reasons for that: one is the level of inequality that is driven by how the system works, where the rich get richer, and the poor get poorer. The second is the lack of transparency around how money is issued, used, and being moved. By definition, interest-bearing money rewards those who have the most amount of money.”
While the project will more or less work in the same manner, the goal is to ensure every interest-bearing asset on the platform is deployed with “fair inclusion and equality.” This means that everybody participating in staking and farm yielding will receive an equitable share regardless of the money put in.
Here is how it works. Once the yield farming is complete, the interest accrued is shared into two, whereby the first handed to supporters and the remaining staked back to produce $G stablecoins. Focusing on yield farming is set to give $G stablecoins real monetary value and fortify its liquidity across the DeFi space, Anne Stone, head of Go-to-Market, explained.
“G$ is a reserve-based token, which means that it has real monetary value and liquidity from day one. Yield-farming, interest from staking, fees from liquidity mining, and other new yet to be created de-fi innovations are all different ways to create and source value to fortify the GoodDollar reserve sustainably.”
According to a spokesperson from the GoodDollar project, several countries, including South Africa and Nigeria, have started creating wallets to receive the UBI proceeds. Additionally, over 100,000 $G tokens have been distributed to over 250 users across the world since the launch of the test project in August.