A valid point raised here,we certainly do need a stable coin for the community. It will help take off pressure on GTC in times when people need to convert tokens to other forms to fund their projects
How the stablecoin is really needed
I think a $oneGTC could be very beneficial for the Gitcoin ecosystem. Mint and redeem for $1, all while building a $GTC reserve and providing a positive price impact solution for the native token.
Those who work within the Gitcoin ecosystem could find using a $oneGTC to be a valuable medium of exchange, store of value, and unit of account. Using a stablecoin that provides a hard peg at $1 and benefits Gitcoin as a whole. Thus, making real business safer and more effective.
Hey @ETHan1Elohim I don’t think it makes any sense to create a stable coin for Gitcoin. It doesn’t really help us accomplish our mission of funding open source, plus there are plenty of other projects out there that provide stability pegged tokens that we can take advantage of.
ICHI is an open source project that allows any open source token community have it’s own stable medium of exchange, backed by that same community currency
I think once you realize the potential , it is obvious how this primitive can be super valuable to help other open-source projects unlock value in their ecosystem.
We propose Gitcoin to lead the way in experimenting with this - full alignment to Gitcoins mission
Yes - there are many stablecoins out there - non of them is backed by $GTC - the whole idea of $oneGTC is serving the Gitcoin community & ecosystem
Why it serve Gitcoin - you get a stablecoin that is backed by $GTC → to mint a new $oneGTC you need to deposit $GTC → it serves as demand driver for $GTC → support the Gitcoin project value.
Really good points here - definitely beneficial to the Gitcoin community to keep value within its own ecosystem and have a stablecoin that is backed by $GTC. When buying RAI, DAI, USDC, USDT, or any other stablecoin you have to sell your $GTC putting downward price pressure on the price. When minting $oneGTC you aren’t selling, but rather storing your GTC into a Treasury (Vault) which the community can decide how to invest. It removes those tokens from circulation and puts upward price pressure on the $GTC token.
A quick update on ICHI v2 launch - The first oneToken on v2 to launch is $oneFIL - a stable coin for the Filecoin community
Since the topic has moved into a proposal status, I’d like to summarize what would be the next step to move forward in deploying $oneGTC and run an experiment in which ICHI and Gitcoin communities will push to experiment with a specific use case for $oneGTC:
Approve launching a $oneGTC - ICHI will be doing all the heavy lifting and deployment (this is contingent to a similar proposal passing an ichi community vote)
Support the launch with $GTC rewards for bootstrapping initial liquidity (ICHI will match with $ICHI rewards so both projects commit to the success of it)
Support an experimental use case for using $oneGTC in the platform - anything from paying grantees in $oneGTC, to providing rebate or cash back for using $oneGTC as the medium of exchange for contributions in the platform etc…
Adding this poll for a temperature check :
- Yes - Gitcoin wants to launch $oneGTC and lead the way in experimenting how crypto communities can benefit from having their own stablecoin!
- No - Gitcoin doesn’t want to take part in this experiment
Thank you for putting together this proposal.
I agree with @Yalor on this. I don’t think it makes sense to create a stablecoin for Gitcoin either. There are many other stablecoins that the community can use right now and this doesn’t seem like a priority in regards to Gitcoin’s mission.
We have a call scheduled tomorrow with several Gitcoin stewards to discuss this proposal and brainstorm ideas. It would be great to have community members join the conversation!
ICHI - Gitcoin $oneGTC
Tuesday, July 6 · 11.30am US Eastern Time (6.30pm CET)
Google Meet joining info
Video call link: https://meet.google.com/apr-xyzf-zgz
Or dial: (DE) +49 40 8081615268 PIN: 530 721 280#
More phone numbers: https://tel.meet/apr-xyzf-zgz?pin=9549163415621
This seems interesting but i’m not sure why it is a priority right now?
IMO We haven’t observed GTC enough yet to know that it does not acheive all of these goals?
“Problem - As with any utility / governance token - $GTC volatility prevent it from being used as a medium of exchange”
there are plenty of governance token ecosystems / protocols that function well and don’t involve creating a stablecoin / gov token pair?
Aren’t many stablecoins eventualIy just backed by USDC anyway?
For finance focused protocol like yearn (YFI/WOOFY) i see the real value, but GTC and Gitcoin are quite different at the moment.
I’m curious what the call yielded though, not trying to discourage this because is something that may become a problem in the future
Hi @martz , the call went really well ! We clarified exactly the points you and others were asking around understanding the core value proposition for Gitcoin and $GTC by using $oneGTC, and how this doesn’t interfere to Gitcoin’s prioroties
We will share here a summary soon. for now you and others are invited to join a group chat opened for ICHI & Gitcoin stewards to discuss $oneGTC
Thank you for your proposal! Here are a few questions I have:
What if oneGTC just launched independently, updated Gitcoin governance on launch, and Gitcoin community members can decide whether to use oneGTC or any other stablecoin? Gitcoin tokenholders can also decide whether to provide incentives for oneGTC or not. We can revisit support from the treasury post launch.
What is your metric for success that would show a community benefited from its own stablecoin vs. using an existing one? Do you have any examples of successful community stablecoins?
How does oneGTC affect GTC, if at all?
From Gitcoin’s perspective, why not borrow/earn/diversify into USDC/DAI/RAI to pay opex rather than use oneGTC? What exactly are we missing out on?
Thanks @HelloShreyas. here are the (kind of) short answers - happy to elaborate on the group chat or schedule another community call:
We can do that. but we strongly prefer to do it together with the communities we build for.
For us , getting support from Gitcoin, the leader in promoting open source development, makes it even more important to join hands and experiment together
Long term impact and value proposition for Gitcoin:
While this is a long term play that doesn’t happen over night, there are benefits along the way for token holders and the community:
Think about loyalty programs and frequent flyer clubs as a successful example in today’s economy - this is how brands retain loyalty and keep capital within their ecosystems.
ICHI wants to allow crypto communities to do the same !
ICHI has launched v2 just a couple of weeks ago, and creating a sustainable economy takes time, I can post separately updates on the progress made with the first tokens to launch - oneFIL & one1INCH (stablecoins for the Filecoin & 1INCH communities)
When you pay in other stablecoins you give up on $GTC to buy them.
When using $oneGTC you actually lock $GTC and reduce the circulating supply (cause $GTC is needed to mint $oneGTC)
(cc @linda in reply to her comment)
Honestly, I think every token that has a marketplace should make a stablecoin
Volatile tokens can be a speculative store of value (GTC has no economic value) and CAN be used as a medium of exchange but as a unit of account they cause more problems than they solve… in fact, because of the unit of account issues, the medium of exchange use case is hampered.
If a good plan and a team with a track record of success can be put together that can legit pull it off i would wholeheartedly support this effort.
Sorry, I will object to it, because I don’t think this is necessary. Gitcon is an open community platform. It aims to develop towards decentralization. I have every reason to believe that the value of GTC will continue to grow and issue stable coins. It will slow down his development. You need to look farther when you walk, not in front of your eyes.
On the contrary - $oneGTC is a long- term play - and is building on the belief of all of us here that Gitcoin and GTC will continue and grow. oneGTC only support that and add utility to the token, making the $GTC economy stronger
Decentralization wise - having it’s own stablecoin does increases the independency of the project, not having to give up on the project native token to get price stability using 3rd party stablecoins.
Closing this topic to shift all discussion toward the official DAO proposal Proposal: $GTC-Backed Economy