System's Elements
Notice of Potential Information Variability
As of December 21, 2023, the information in GoodDocs may not reflect the most current updates. The team is diligently working to review and revise the documentation to ensure accuracy. Please check back at a later date for the most up-to-date information.
1. The token (G$)
The GoodDollar token (G$) is an ERC-20 crypto token with a max supply of 2.2 trillion. It is native to Ethereum and also operates on Fuse and Celo.
2. The Reserve
The GoodDollar Reserve is the smart contract that governs the vault holding the assets that back G$ tokens. The algorithm that guides the reserve is based on the Bancor formula, which has been altered to fit GoodDollar’s needs. There are two important characteristics unique to the GoodDollar Reserve:
The reserve supports the generation of G$. Users can always convert to and from G$ via the reserve.
The unique math of the GoodDollar Reserve lends G$ exceptional stability.
Exit Contributions
In addition to the G$ coin and the GOOD governance token, the GoodDollar ecosystem includes a third type of crypto token: G$X. Members who hold G$X tokens can use these to reduce their exit contributions when selling G$ to the reserve by an amount set by the DAO. Users acquire G$X tokens as a reward for buying G$ from the reserve (currently, a user who buys 100 G$ will also receive 100 G$X).
Helpers
Helper contracts are smart contracts that connect the GoodDollar Reserve to other liquidity networks in order to allow liquidity to flow from G$ to any other token that has an automated market maker (AMM). For example, if a user wants to convert token X to G$, the helper contract will first convert token X to DAI using Uniswap, and then convert DAI to CDAI using Compound. Finally, it will convert the CDAI to G$ using the GoodDollar Reserve. Future versions of the protocol may extend this functionality to additional protocols, such as Bancor.
3. The Trust
The aim of the GoodDollar Trust is to generate an ongoing flow of money into the GoodDollar Reserve. What we refer to as the GoodDollar Trust is in actuality a collection of trust funds, or staking contracts, that “wrap” third-party deposit-taking DeFi protocols. Each protocol and token has a separate trust fund.
4. Savings rewards
Rewards are fixed at 5% APY.
5. The Fund Manager
Responsible for several critical processes in the GoodDollar protocol. These include:
The activation of UBI generation.
The transfer of interest from the GoodDollar Trust to the GoodDollar Reserve.
The transfer of funds to the Bridge and onward to the DisCo for distribution to UBI Claimers via the Fuse blockchain.
6. The Distribution Contract (DisCo)
The DisCo, or Distribution Contract, is a smart contract that handles the distribution of G$ to all white-listed addresses.
7. Governance (DAO)
The GoodDollar governance model is based on the Compound governance model and code, as set out here. Critical to the process is the GOOD token, a non-transferable token that controls all smart contracts within the GoodDollar ecosystem.
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