# Architecture & Value Flow G$ is a digital asset designed to power the GoodDollar economy and the commons by creating money and distributing it as **Universal Basic Income (UBI)** and incentives that support real economic activity. It operates within the emerging ecosystem of decentralized and open finance and is issued by the GoodDollar protocol against a reserve of cryptocurrencies held in the GoodDollar Reserve. The primary value in the reserve comes from **investors, customers, and businesses that purchase G$ tokens** in order to participate in and support the GoodDollar economy. Additional value flows into the reserve from **supporters who donate the interest earned on capital they stake in decentralized finance protocols**, strengthening the system without requiring the underlying capital itself to be donated. New G$ tokens are created primarily by **increasing reserve leverage through reductions in the reserve ratio**. The newly issued G$ is then distributed through the protocol to support **daily UBI payments to verified users, incentives for savings and participation, ecosystem development, and aligned projects**, helping grow a sustainable and inclusive digital economy. G$ tokens are **always liquid and convertible to other cryptocurrencies**, and can be bought or sold directly through the **GoodDollar GoodReserve smart contract**, enabling participants to easily enter or exit the GoodDollar economy. ### **How the GoodDollar system works** This is the money flow that underpins the generation of GoodDollar crypto UBI.
*** ## Overview The diagram describes how **GoodDollar governance, reserves, and distribution infrastructure operate across multiple chains (Celo, XDC, and Fuse)** to distribute **UBI and ecosystem incentives**. Three types of flows are represented: * **Governance (orange dashed arrows)** – decisions made by the DAO and Guardians * **Money flow (blue arrows)** – movement of funds and G$ tokens * **Identity verification (red arrows)** – required to claim UBI *** ## 1. Governance Layer {% hint style="warning" %} #### GoodDollar governance is going through a restructure follow on {% endhint %} #### GoodDAO The **GoodDAO** is the primary governance body of the system.\ It defines policies such as: * distribution rules * incentives * supported chains * reserve management #### Guardians **Guardians** act as an operational governance layer that executes or oversees decisions made by GoodDAO. Governance flow: **GoodDAO → Guardians → ecosystem components** Guardians influence how reserves, bridges, and chains operate. *** ## 2. The Reserve (Money Creation) The **Reserve** is the financial engine of the system. It **creates G$ (GoodDollar tokens)** which are then allocated to several purposes. The Reserve generates G$ that flows into the **Distribution Manager**, which allocates it to: 1. **UBI Distribution** – daily payments to verified users 2. **Savings incentives** – rewards for participating in savings mechanisms 3. **DAO Treasury** – funds for governance and ecosystem development 4. **House of Alignment incentives** – funding for ecosystem projects aligned with GoodDollar goals 5. **Other future utility** - credit, cashbacks and subsidies *** ## 3. Distribution Manager The **Distribution Manager** receives newly created G$ from the Reserve and distributes it. From here funds flow to: * **UBI Distribution** * **Savings incentives** * **DAO Treasury** * **House of Alignment projects** This component acts as the **central allocator of G$ emissions**. *** ## 4. UBI Distribution and Identity To receive UBI: 1. A user must pass **Identity verification** 2. The **UBI Distribution contract** releases G$ to verified users Flow: **Identity verification → UBI Distribution → Users** This ensures **one-person-one-UBI**. *** ## 5. Cross-Chain Expansion via the Bridge The **Bridge** connects the GoodDollar system across multiple chains. Funds from the **Distribution Manager** can flow into the **Bridge**, which then routes them to: * other supported chains * ecosystem projects *** ## 6. House of Alignment The **House of Alignment** is a coordination hub for ecosystem projects that support the GoodDollar mission. Projects in this layer can receive **G$ incentives originating from the Reserve**. Purpose: * align external projects with GoodDollar’s goals * incentivize ecosystem participation * expand utility and adoption of G$ *** ## 7. Multi-Chain Deployment The system operates across multiple chains: #### Celo The main infrastructure currently includes: * Reserve * Distribution Manager * Savings * DAO Treasury * UBI Distribution * Identity #### XDC Replicates the UBI infrastructure: * Reserve * Distribution Manager * UBI Distribution * Identity #### Fuse A lighter deployment focusing on: * UBI Distribution * Identity Funds can be bridged to these chains to enable local UBI distribution. *** ## End-to-End Flow 1. **Governance** * GoodDAO defines policy * Guardians oversee implementation 2. **Money Creation** * Reserves create **G$** 3. **Allocation** * Distribution Manager allocates G$ directly or via bridge to: * UBI * Savings incentives * DAO Treasury * House of Alignment incentives 4. **Cross-chain distribution** * Bridge routes funds to other chains and projects 5. **User payments** * Verified users receive **UBI**. *** ✅ **Summary** The Reserve mints **G$ tokens** which fund UBI, savings incentives, the DAO treasury, and ecosystem projects.\ These funds are distributed by the Distribution Manager, can be bridged across chains, and also serve as incentives for **House of Alignment projects**, enabling a multi-chain ecosystem aligned around GoodDollar’s UBI mission.