Proposal: $GTC-Backed Economy

[Lior]

Hi Trent, thanks for sharing your question here!

@trent

won’t workstream contributors eventually redeem / sell the oneGTC for their various reasons? this seems counter to the claim i’ve seen that oneGTC will prevent market selling. further, are workstreams actually interested in being paid in a token like this?

People use money to either spend or save it - those who plan to spend it, would do so in both cases, but those who save, will now hold an asset that:

1. Locks $GTC in it’s treasury
2. Generate yield for the Gitcoin community.

The vision is that at scale, people can do more stuff with $oneGTC - they can pay for contributors in the Gitcoin platform, donate to projects, create income service agreements bonds etc…

the more utility —> the less people immediately sell it cause they can use it and get benefits for prefering the protocol native stablecoin over others

In turn - the protocol can encourage people prefer it’s stable medium of exchange to pay for these kind of protocol service, cause it has the collateral generating yield that can potentially fund those rewards

@trent

I haven’t seen any mention of the 2 & 20 fee structure I see in this Loopring AMA from May. Is this not going to be applied to oneGTC? if not, will it be applied in the future? do other oneTokens have these fees applied?

ICHI was build with the oneToken communities in mind. The 2/20 model serve this purpose by aligning the interests of the ICHI community and the oneToken community:

1. The ICHI community will vote to launch only vetted projects with clear potential for a sustainable economy around their oneToken.
2. Whitelist strategies that has been vetted to be safe for deploying the collateral to work.
3. ICHI community has interest to ensure a responsible treasury management guidelines are followed, increase confidence in the oneToken, and supporting it’s growth

If those are kept - ICHI token holders share the fruits in the form of shared profits

With that said, we are at a very early stage. While all oneTokens have this structure built in, since v2 launch, this hasn’t been applied since the focus is on growth and adoption.

@trent

I think the Gitcoin community would be better served tapping into a larger, more established stablecoin (eg. DAI) for now, and potentially revisit this project at another time.

This is one of the most common responses we get [1] [2] - it’s true other stablecoins are more common at this point of time - the point is none of them is serving the Gitcoin community and governed by it - which we believe has lots of merits and value.