EToro, the popular investment platform for stocks and cryptocurrencies, today announced that it will strengthen its commitment to the project to open up the possibilities of the digital economy, by increasing its stake in GoodDollar, il Universal Basic Income (UBI) protocol based on community strength. EToro’s investment will go from USD 58 thousand to USD 1 million.
What is GoodDollar
GoodDollar is a project conceived by Yoni Assia, founder and CEO of eToro, and sponsored by eToro itself, although it was founded and operated as an independent foundation and entity. By adapting the endowment fund model commonly used by non-profit organizations, the GoodDollar protocol applies a similar scheme to establish a community-driven universal basic income in the age of decentralized finance. The GoodDollar Protocol (GoodDollar G$) was created with the aim of addressing the growing global economic divide, working towards a greater financial culture and a more intelligent combination of the mechanisms of smart contracts, decentralized finance (DeFi), and guaranteed crypto tokens. The elements of the GoodDollar protocol form the basis of an innovative distribution model, designed to harness market forces and the principles of social investing to give everyone, everywhere, the opportunity to participate in the growth of crypto.
The GoodDollar model overturns the traditional concept of donation-based philanthropy. Sponsors are encouraged to participate through a range of “double bottom line” rewards: both financial and social. This uses the concept of staking, the process by which holders of a specific cryptocurrency can earn rewards by betting capital on DeFi protocols, such as AAVE and Compound. A portion of what is generated is then distributed to the global community of members in the form of a GoodDollar token. With staking, any individual or company can use their crypto assets for a social purpose, without having to donate directly. Because it is built on the power of DeFi, GoodDollar is free from geographic, economic and regulatory restrictions. Anyone, in any country, can participate in the digital economy by accessing free cryptocurrency through the GoodDollar app, and anyone can become a philanthropist by donating capital to support the project’s goals. In fact, this is the most universal basic income program in the world to date.
GoodDollar recently released the results of its Proof of Concept, a limited launch of the protocol designed to validate the economic model and market adoption. NASTY with an initial investment of $58,000, the protocol conceived and distributed a universal basic income of $16,000 to more than 225,000 people in one year in the form of G$. This success made eToro more involved in the project, increasing its share by more than 17 times. The increased investment comes in preparation for the fall launch of GoodDollar V2, which will allow any supporter to devote their capital to the system and help realize global UBI.
“Too many people are excluded from opportunities that could lift them out of poverty, including access to capital markets and digital jobs,” said Yoni Assia, CEO of eToro† “The GoodDollar project aims to alleviate this situation by promoting financial inclusion and empowerment around the world. We hope that other innovation leaders, recognizing the potential of cryptocurrencies, will join us and help us use the burgeoning power of DeFi responsibly. †