GoodDocs
  • Welcome to GoodDocs!
  • GoodDollar Ecosystem Vision
  • About the Protocol
    • Usage
    • Tokenomics
    • Sybil-Resistance
    • Protocol V3 Documentation
      • Architecture & Value Flow
      • System's Elements
      • Core Contracts & API
        • GoodDollar
        • GoodCompoundStaking V2 (DAI)
        • GoodAaveStaking V2 (USDC)
        • GoodReserveCDai
        • GoodFundManager
        • GoodMarketMaker
        • ContributionCalculation
        • UBIScheme
        • Identity
        • FirstClaimPool
        • AdminWallet
        • OneTimePayments
        • DonationsStaking
        • NameService
        • GReputation
        • CompoundVotingMachine
        • StakersDistribution
        • UniswapV2SwapHelper
        • Invites
        • GovernanceStaking
        • ClaimersDistribution
        • CompoundStakingFactory
        • AaveStakingFactory
        • ExchangeHelper
        • FuseFaucet
        • GoodDollarMintBurnWrapper
      • Previous Protocol Versions
        • Protocol V1
          • Architecture & Value Flow
          • Core Contracts & API
        • Protocol V2
          • Architecture & Value Flow
          • System's Elements
            • 1. The token (G$)
            • 2. The Reserve
            • 3. The Trust
            • 4. Staking rewards (APR)
            • 5. The Fund Manager
            • 6. The Distribution Contract (DisCo)
            • 7. Governance (DAO)
          • Core Contracts & API
            • GoodDollar
            • GoodCompoundStaking V2 (DAI)
            • GoodAaveStaking V2 (USDC)
            • GoodReserveCDai
            • GoodFundManager
            • GoodMarketMaker
            • ContributionCalculation
            • UBIScheme
            • Identity
            • FirstClaimPool
            • AdminWallet
            • OneTimePayments
            • DonationsStaking
            • NameService
            • GReputation
            • CompoundVotingMachine
            • StakersDistribution
            • UniswapV2SwapHelper
            • Invites
            • GovernanceStaking
            • ClaimersDistribution
            • CompoundStakingFactory
            • AaveStakingFactory
            • ExchangeHelper
            • FuseFaucet
  • User Guides
    • Buy & Sell G$
    • Stake to create UBI
    • Claim GOOD and G$X
    • Bridge GoodDollars
    • Connect another wallet address to identity
  • Liquidity
  • Wallet and Products
    • GoodWallet
    • GoodDapp
    • New GoodWallet
    • GoodCollective
    • GoodID & GoodOffers
    • 3rd Party Partners and Integrations
  • Frequently Asked Questions
    • Web3 basic knowledge and security tips - by Consensys
    • About GoodDollar
    • GoodDollar Protocol & G$ Token
    • Using GoodDollar
    • GoodDollar Community
    • Troubleshooting
  • For Developers
    • Contributing to GoodDollar
    • GoodDapp Developer Guides
      • Deploy your own GoodDapp UI
    • APIs & SDKs
      • Claim UBI
      • React Hooks Setup
      • Login With GoodDollar
      • Sybil Resistance
        • Identity (Ethers v5 / React)
        • Identity (Viem/Wagmi)
  • Useful Links
    • GoodDollar.org
    • GoodDapp
    • GoodWallet
    • GoodDollar User Guides
    • Statistics Dashboard
    • GoodDollar Whitepaper
    • GoodDollar Litepaper
    • GoodDollar Litepaper - Español
Powered by GitBook
On this page
  • GoodDollar Money Flow
  • How the GoodDollar system works

Was this helpful?

  1. About the Protocol
  2. Protocol V3 Documentation
  3. Previous Protocol Versions
  4. Protocol V2

Architecture & Value Flow

This page provides an overview of the GoodDollar V2 smart contracts architecture and value flow within the system.

PreviousProtocol V2NextSystem's Elements

Last updated 3 years ago

Was this helpful?

GoodDollar Money Flow

GoodDollar is a new kind of digital economy with a UBI distribution model. The protocol is able to sustainably generate a crypto token (G$) for onward distribution in two ways:

  1. Through the addition of funds to the GoodDollar Reserve via interest earned on capital staked with third-party protocols, or the purchase of G$ from the GoodDollar Reserve.

  2. Through reductions in the reserve ratio.

How the GoodDollar system works

This is the money flow that underpins the generation of GoodDollar crypto UBI.

  1. Supporter stakes crypto to the GoodDollar Trust.

  2. The GoodDollar Trust stakes that money to a third-party DeFi protocol.

  3. The third-party DeFi protocol issues a staking token (e.g. CDAI) to the GoodDollar Trust.

  4. In return for staking, the supporter is entitled to be rewarded with a sum of G$. The staker can then either withdraw these rewards, or waive this entitlement.

    1. The staker can withdraw his stake at any time.

  5. Keeper (any player in the ecosystem who wants to do this work) activates the Fund Manager, to funnel interest back to the GoodDollar Trust:

    1. The keeper is also rewarded with G$.

  6. Fund Manager:

    1. Collects interest from the different GoodStaking contracts and sends this to the GoodDollar Reserve.

    2. Converts any extra tokens generated through staking to CDAI.

    3. Swaps the interest payments into G$.

    4. Sends the G$ over the Bridge to the Disco.

  7. The DisCo then divides the G$ among all whitelisted wallets that have clicked “claim” on the app within the preceding 24 hours.