Cryptocurrency investment platform eToro has committed $ 1 million to the GoodDollar Universal Basic Income Protocol, supporting the nonprofit’s efforts to close the global wealth gap through DeFi and smart contract technology.
The additional capital will help GoodDollar expand its protocol and bring more recipients into the cryptocurrency, eToro announced Wednesday. The GoodDollar system works by capturing the interest generated by contributions from staking donors in major DeFi protocols such as Aave and Compound. This interest is then distributed to a global community via GoodDollar tokens.
The GoodDollar token, which is marked under the ticker symbol G, is described as a reserve-backed cryptocurrency that is distributed daily to registered users in the form of UBI. The UBI model is supported by donors who deposit assets on the platform. Part of the interest accrued through staking is paid to donors, the rest being guaranteed in the form of new G tokens.
GoodDollar was founded by eToro in 2020 to help resolve systemic inequalities and create more transparency about how money is created. Originally, eToro pledged $ 58,000 into the protocol before increasing its stake to $ 1 million after GoodDollar released promising results for its proof of concept. During the initial trial, the protocol distributed UBI $ 16,000 in the form of GoodDollar tokens to over 225,000 people.
The cryptocurrency industry has generated significant wealth for early adopters, and many of these pioneers are giving back through charitable contributions. As TBEN reported, four industry veterans – Ryan Selkis, Dan Matuszewski, Qiao Wang and Haseeb Qureshi – have pledged to donate at least 1% of their wealth to charity each year as part of the of a new initiative created by The Giving Block.
Meanwhile, at least two NFT-focused cryptocurrency projects recently announced generous donation plans. US business magazine Fortune recently launched a philanthropic fund for journalism on Ethereum alongside artist NFT Pplpleasr. In addition, the Trippy Bunny NFT project donated 100% of its proceeds to a suicide prevention foundation.
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The crypto donation industry is growing rapidly as more nonprofits start accepting contributions via Bitcoin (BTC), Ether (ETH), and other digital assets. In January, the American Cancer Society launched a Crypto Cancer Fund that accepts digital donations. More recently, New York-based Hearts & Homes for Refugees announced that it would accept donations in nearly a dozen cryptos to support those displaced by the Taliban takeover in Afghanistan.