Universal Basic Income is a hypothetical way to stimulate the global economy by providing citizens with a monthly stipend to meet their basic needs. The concept, realized in 2019, thanks in part to former presidential candidate Andrew Young’s campaign platform, has now made it into the crypto realm.
The multi-asset trading platform eToro recently announced the official launch of GoodDollar, a non-profit initiative that plans to use decentralized financing as a way to provide users with “digital core income”.
Speaking with Cointelegraph, UniAsia, founder and CEO of eToro and founder of GoodDollar, explained why he believes the current financial structure needs updating:
There are two reasons for this: The first is the level of inequality caused by how the system works, with the rich getting richer and the poor getting poorer. Second, there is a lack of transparency about how the funds are issued, used, and transferred. By definition, interest money rewards those with the most money. ”
Asia concluded that GoodDollar is not “entirely different,” but that the message is clear enough to have a significant impact on the problems inherent in current economic models. He also referred to knowledge of interest rates, “a proven concept that basically everyone understands,” and said that GoodDollar would be used to distribute them “with inclusiveness and fairness as goals”, where everyone benefits without reference. … how much money they have.
Anna Stone, Head of Go-to-Market, spoke about the reasons the project is using the concept of trait-based breeding:
G $ is a token based on reserve meaning that it has real cash value and liquidity from day one. Revenue, Effort Percentage, and Commissions from Liquidity Transactions and other news not yet generated through innovation are various ways to create sustainable and upfront value to consolidate GoodDollar Reserve. ”
GoodDollar is backed by a basket of cryptocurrencies, the value of which is determined by the benefit generated by unauthorized third-party protocols.
G $ coins are minted on the general reserve interest account: individual and corporate sponsors receive income from market interest in G dollars, and the daily amount of distribution is allocated as basic income to the participants of the platform.
At launch, DAI will be the first cryptocurrency to be supported in GoodDollar cash reserve, Compound will be the platform’s first integrated protocol. Tomer Barriach, Head of Product and Icon Design at GoodDollar explained:
“ DAI is the market-leading decentralized stablecoin and one of the most popular investment assets; its stable nature makes it useful as the first reserve currency, as G $ is for barter and trading. The composite has been widely adopted by players and users alike, with assets of more than 600 Million dollars. ”
The drive for GoodDollar was partly inspired by a recent study by the University of Oxford, which found that 71% of Europeans support UBI after the COVID-19 pandemic.