Cryptocurrency investment platform eToro has committed $1 million to the GoodDollar universal basic income protocol, supporting the nonprofit’s effort to bridge the global wealth gap through DeFi and smart contract technology.
The additional capital will aid GoodDollar in expanding its protocol and introducing more recipients to cryptocurrency, eToro announced Wednesday. The GoodDollar system works by capturing the interest generated by staking donors’ contributions in leading DeFi protocols such as Aave and Compound. That interest is then distributed to a global community via GoodDollar tokens.
GoodDollar token, which is marked under the ticker symbol G, is described as a reserve-backed cryptocurrency that is distributed daily to registered users as a form of UBI. The UBI model is supported by donors who deposit assets on the platform. A portion of the accrued interest via staking is returned to the donors, with the rest collateralized in the form of new G tokens.
GoodDollar was founded by eToro in 2020 to help solve systemic inequality and create more transparency around how money is created. Originally, eToro had committed $58,000 to the protocol before upping