The number of crypto-focused nonprofits is increasing. Through the GoodDollar program, eToro is working to increase financial inclusion and financial knowledge around the world.
eToro, a cryptocurrency trading platform, has donated $1 million to the GoodDollar universal basic income protocol, which will aid the nonprofit’s efforts to close the global wealth gap through the use of Decentralized Financial Institutions (DeFi) and smart contract technology.
The new funding will assist GoodDollar in extending its system and introducing more recipients to cryptocurrencies, according to a statement released by eToro on Wednesday morning.
In order for the GoodDollar system to function, donors’ contributions are staked in prominent DeFi protocols such as Aave and Compound, thereby capturing the interest produced. The GoodDollar tokens, which represent the interest earned, are subsequently given to members of the worldwide community.
This cryptocurrency, which trades under the ticker symbol $G, is referred to as a reserve-backed cryptocurrency that is distributed to registered users on a daily basis as a kind of universal basic income (UBI).
The UBI model is backed by donors who make contributions to the platform by depositing assets. A portion of the accrued interest earned by staking is returned to the donors, with the remainder collateralized in the form of new G tokens to protect the donors’ investment.
GoodDollar was launched by eToro in 2020 with the goal of assisting in the reduction of systemic inequity and the increase of openness surrounding the creation of money. eToro had initially invested $58,000 in the protocol before increasing its investment to $1 million when GoodDollar announced positive results from its proof-of-concept experiment.
Over 225,000 people received GoodDollar tokens during the protocol’s inaugural trial run, which delivered $16,000 in UBI in the form of GoodDollar tokens to a total of 16,000.
Early adopters have reaped enormous financial rewards from the cryptocurrency business, and many of these pioneers are reinvesting their profits in the community through philanthropic contributions.
Following a new initiative launched by The Giving Block, four cryptocurrency industry veterans — Ryan Selkis, Dan Matuszewski, Qiao Wang, and Haseeb Qureshi — have promised to contribute at least 1 percent of their fortune to charities each year, according to a report by Cointelegraph.
At least two NFT-focused cryptocurrency projects recently announced hefty donation plans, which is a promising sign of things to come.
In collaboration with NFT artist Pplpleasr, the American business magazine Fortune recently announced a charity fund for journalism on the Ethereum blockchain. Similarly, the Trippy Bunny NFT project has made a donation to a suicide prevention nonprofit in the amount of 100 percent of the mint sales received.
The cryptocurrency donations business is growing rapidly as more and more NGOs seek to accept donations in the form of Bitcoin (BTC), Ether (ETH), and other digital currencies. The American Cancer Society started a Crypto Cancer Fund in January, which takes donations made using cryptocurrency.
More recently, the New York-based Hearts & Homes for Refugees stated that it will accept donations in nearly a dozen different cryptocurrencies to assist individuals who have been displaced as a result of the Taliban’s seizure of control over Afghanistan.