Thanks for your candid feedback as to why you do not support this proposal @0xZakk and @meglister as well as your personal support of the Glo Dollar initiative!
I 100% understand your thinking and hesitations, and they’re very much in line with feedback we get on a daily basis: most people are hesitant to switch to a new stablecoin until it is ubiquitous because of perceived “unknown-unknowns” of an “untested” alternative. This presents a paradoxical cold start problem to us, as Glo Dollar will not become ubiquitous until at least 3.5% of the population switches.
Of course, we don’t get to adoption by 3.5% of crypto users overnight, we need to start with the 0.1% of crypto users and organizations with the strongest mission & values alignment. I like to think Gitcoin is within that 0.1% given its mission to support regenerative digital public goods, and that because of this alignment Gitcoin can very effectively leverage Glo Dollar’s impact as part of its own marketing and branding. To illustrate, the potential impact is big:
- If Glo Dollar captures 1% of the current stablecoin market, we generate enough money for GiveDirectly to lift an estimated 62,000 people out of extreme poverty.
- At 5% market share, that’d be 310,000.
Isn’t that exactly the kind of real-world impact we’re striving for in crypto? Available to us at the cost of no one, except Circle and Tether.
@0xZakk I’d love to explore what other ways to support Glo Dollar we can come up with together that you would be supportive of. Would diversifying matching pool funds instead of treasury funds as suggested by @krrisis be a viable alternative? Or perhaps reducing the 500k to a smaller amount and/or doing multiple swaps over the course of a year makes more sense?
At this stage in Glo Dollar’s growth holding any amount of Glo Dollar already helps - some Glo Consortium members start with 5% of their treasury or a single $10k buy, for instance.
Finally, I want to emphasize that we’d actually be stoked if Glo Dollars are being used to pay creditors, or even converted back to USDC when necessary @meglister! This very much fits with our vision of Glo Dollar being a stablecoin that’s being used to power real world goods and services, of which payroll is a great example. Note that we can facilitate 1:1 swaps from Glo Dollar to USDC.