Author: Garm Lucassen, CTO of Glo Dollar
Version 2.0, a revision to the previously posted v1.0
We propose that Gitcoin exchange 100k of its matching pool USDC for 100k Glo Dollars, the stablecoin that helps end extreme poverty, and plan to hold the Glo Dollars for at least 12 months.
Doing so has two benefits:
- Enable Gitcoin’s matching funds to have additional impact through Glo Dollar’s basic income funding mechanism that reduces extreme poverty
- Support the development of an alternative US regulated stablecoin that benefits the public and the broader crypto ecosystem, instead of a few shareholders
The Gitcoin matching pool currently holds a little over $13 million of assets. Exchanging $100k for Glo Dollars would mean swapping approximately 0.7% of the matching pool funds for an equivalent amount of Glo Dollars.
Glo Dollar is the stablecoin that enables holders to help end extreme poverty, without donating anything.
Glo Dollar is US regulated and 1:1 backed by a reserve of cash and US Treasuries. When the Glo Foundation receives revenue from the reserve, they donate it to GiveDirectly’s basic income programs that lift people out of extreme poverty. (See this article for why we donate to GiveDirectly.)
At scale, we expect every $20,000 of Glo Dollar market cap to lift 1 person out of extreme poverty. At Tether’s current market cap, that corresponds to lifting four million people out of extreme poverty. Even at smaller caps, this amounts to millions of dollars of money generated for GiveDirectly.
By choosing to put some of its treasury into Glo Dollar, Gitcoin can embed philanthropy into its everyday operations and leverage Gitcoin’s matching pool funds as an additional tool for funding public good creation. We think choosing Glo Dollar as one of the stablecoins in its treasury aligns with Gitcoin’s stated mission to build and fund digital public goods. Though not digital, a global basic income for anyone who falls below the extreme poverty line can be considered an important public good. Glo Dollar is a donation-independent funding mechanism that can support such a basic income perpetually and at scale. Anyone holding Glo Dollars contributes to this funding mechanism at no cost. Affecting 700 million people, extreme poverty is a highly costly problem in terms of human potential and wellbeing, but it is solvable through unconditional cash transfers. The bottleneck for these programs is funding.
As a final consideration: the incumbent stablecoins already function as a public good, yet are managed by for-profit entities incentivized to choose the benefit of shareholders over the benefit of the ecosystem. Even if you do not hold USDC or USDT yourself, most of DeFi runs on them under the hood. It’s time the ecosystem adopts a stablecoin that is managed as a public good.
Glo Dollar previously participated in Gitcoin’s Web3 Open Source Software round and metacrisis funding round. Check out the Glo Dollar website for more information on everything you might want to know about Glo Dollar, such as how Glo Dollar works and how we issue Glo Dollars in a regulatory compliant manner by partnering with Brale.
We propose that the Gitcoin matching funds pool exchange $100,000 in USDC for Glo Dollar and commit to holding the Glo Dollars for a period of 12 months.
To execute upon this effort, we propose to carry out these steps:
- Appoint a DAO coordinator that collaborates with the Glo Dollar team on this proposal
- Allocate $100,000 USDC to a matching pool diversification wallet address
- Swap USDC for Glo Dollar using Uniswap or an OTC desk
- Transfer exchanged Glo Dollar to Gitcoin’s matching pool multisig wallet
- Co-market the completion of diversification efforts with the Gitcoin community and the broader world
- After 12 months, evaluate whether to exchange the Glo Dollars back to USDC or to continue to hold on to Glo Dollars for an extended period of time
Glo Dollars are always exchangeable 1:1 for USDC with our issuing partner Brale, should the need arise to revert this position sooner than 12 months.
We propose the vote to be a yes / no vote.
Swap $100,000 USDC in the matching pool funds for $100,000 Glo Dollars, or do not swap.
1 - Yes to swap $100k USDC for Glo Dollars
2 - No do not swap USDC for Glo Dollars
Our objective is for everyone to prosper through this proposal: Gitcoin, Glo Dollar, and, most significantly, the 700 million individuals living in extreme poverty.