Architecture & Value Flow
This page provides an overview of the GoodDollar V3 smart contracts architecture and value flow within the system.
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.
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 GOOD (governance tokens). The staker can then either withdraw these rewards.
- 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 all distribution contracts.
- 7.The DisCo then divides the G$ among all whitelisted wallets that have clicked “claim” on the app within the preceding 24 hours.
In V3, the reserve allows for setting multiple recipients for the minted UBI.