[GIP-13] Expansion of GoodDollar protocol on Celo blockchain

Governance Proposals
#1

GIP: GIP-13
Title: Expansion of GoodDollar Protocol on Celo
Author: Anna Stone
Status: Stage III
Track: Protocol
Created: 06-01-2023

Description of desired Protocol policy change*

GoodDollar protocol() is a standard for free money as a public good. Its mission is to enable money to flow where it is needed most. It does this through issuing a daily minting and distribution of GoodDollar, a reserve-backed token, as daily universal basic income (UBI) to its members. Today, G$ token functions as a global community currency, that enables its members to transact in G$ peer-to-peer, and provides real digital assets enabling financial and technical access other goods, services and products of the crypto ecosystem.

Since its launch, the G$ token has been designed to function in a multi-chain paradigm. The core smart contracts that govern the monetary policy of the GoodDollar protocol operate on Ethereum mainnet, including the minting of G$ tokens to be distributed as UBI. G$ UBI distribution occurs on L2s and side-chains that are better suited for high volume, low-value transactions. To date, all distribution of G$ from the Reserve has been distributed to whitelisted members on Fuse Network.

This proposal is a vote to approve the expansion of the G$ token and Protocol on the Celo blockchain, including G$ UBI distribution on Celo, with the support of the GoodDAO. The core protocol contracts that govern the GoodDollar monetary policy on Ethereum remain unchanged; GoodDollar protocol will also continue to distribute daily G$ distribution on Fuse. This vote is to approve the development work that the core team is going to do in order to expand and deploy the G$ token, protocol and governance to expand to Celo.

Therefore, this proposal requests to approve the following:

  • The expansion of the GoodDollar protocol, G$ token and GoodDAO governance module to the Celo blockchain
  • The work and deployment that the core development team to adapt the GoodDollar protocol, G$ token and GoodDAO contracts to Celo:
    • Deployment of G$ token on the Celo Blockchain
    • Deployment of GOOD token on the Celo Blockchain
    • Deployment Multichain.org to be approved as the default bridging service, initially bridging between Ethereum<>Celo
    • Deployment of Multichain decentralized Ethereum <> Fuse <> Celo bridge, and its limits (see below)
    • Deployment GoodDollarMintBurnWrapper contract to deploy on Celo. This contracts “wraps” the G$ token and can give G$ minting rights (through the DAO) to other contracts/addresses. Initial minting rights were given to the multichain.org router, with the minting limits below.

All of the above contracts are proposed to be controlled by a Multisig (GnosisSafe) that will be transferred to the control of the GoodDollar Guardians per GIP 2, until the on-chain governance of the GoodDAO is activated.

Following the approval of this proposal, subsequent proposals will be presented to ratify the UBI distribution of G$ on Celo, which will include determining the proportion of daily G$ issuance to be distributed to the Celo blockchain.

Multichain decentralized Ethereum <> Fuse <> Celo bridge

The Multichain bridge will be designed to enable members to easily and efficiently move their G$ tokens across Ethereum, Fuse, and Celo.

The Multichain bridge will be set according to the following limits:

  • The bridge was set with limits (via smart contracts)
    • Incoming (ETH → CELO/FUSE) : 300M per TX
    • Outgoing (CELO/FUSE → ETH): 300M per TX, daily limit of 50% of total supply on the side-chains
    • The bridge fee will be either 0.1% of fees transferred, or a minimum of $80 USD to bridge between Fuse and Celo to Ethereum. The minimum fee will be $0.90 USD when bridging G$ to a sidechain.
  • For security purposes, the best practice is set limits on the use of the bridge.
    • Set the GoodDollar Limited LLC as the Bridge Guardian (can modify bridge limits)
    • Those limits can be modified in the future by the GoodDAO or a yet to be created bridge Guardian
    • The initial limits chosen will evolve as the GoodDollar sidechain ecosystem develops
  • To transfer 10% of the locked GoodDollars currently on the Fuse <> Ethereum bridge to the Multichain bridge on Ethereum. This will enable supply exit liquidity when bridging from Celo or Fuse to Ethereum. This has an additional benefit of distributing risk.

The GoodDAO will not be restricted to approving a single bridge but can approve multiple bridging services, as a risk allocation strategy.

## Motivation for asking changes in such Protocol policy

Celo is a carbon-negative EVM-compatible blockchain that is accessible to anyone with a smartphone. Celo’s core mission is to build an open financial system that creates the conditions of prosperity for all.

GoodDollar and Celo are strongly aligned in their individual missions. Both GoodDollar and Celo are chasing the same goal: to bring DeFI (decentralized finance) to the people that are in most need of DeFi, specifically unbanked people and emergency market economies that have poor financial systems.

The purpose of GoodDollar’s expansion to Celo is to ensure that G$ is in an ecosystem that will enable the protocol to grow by giving more utility to the G$ token and its holders, and to put the protocol in the ecosystem where it stands the best chances to thrive. With shared mission alignment, we believe GoodDollar and Celo community members offer the GoodDollar protocol the best chance to thrive by accessing like-minded stakeholders the opportunity to contribute to the GoodDollar protocol and GoodDAO. This will continue to promote the idea of community led-growth and governance, just within a larger community.

Celo has developed an ecosystem that prioritizes its users in a way that also meets the needs of the G$ community. This includes particular dapps that are focused on financial access and empowerment for those from financially underserved populations, such as:

  • Savings dApps
  • Microloans
  • P2P Markeplaces
  • Mobile minutes

Expanding G$ onto the Celo blockchain opens the door for users to connect and utilize their G$ tokens in Dapps across the Celo ecosystem. The expansion to Celo will create multiple growth opportunities for GoodDollar across all areas of the project: engineering, integrations, business development, community development and activation, advocacy and education. The GoodDollar Team is excited to keep learning and growing with you!

46 Likes
GIP-14: Activation of G$ UBI Distribution on Celo
GIP: GIP-15 Title: Activate New GoodDollar Bridges from ETH Mainnet to Celo & Fuse
[GIP 14.1] Increase Distribution on Celo Blockchain
#2

This proposal to be able to have G$ in Celo Blockchain seems very good to me that’s more ecosystem for the Good community.

However, I can’t quite understand what you mean when you talk about GoodDollarMintBurnWrapper, I can’t understand that point.

12 Likes
#3

Celo is a very good option to bring GoodDollar to other people and expand the protocol. I totally agree with this great proposal to start the year on the right foot.:heart:

20 Likes
#4

Well thought out and good work by the core team!

13 Likes
#5

Expanding the protocol to other chains is the best option at hand which will open more prosperity to people Globally and the unbanked. Let’s do this.

19 Likes
#6

Hey G$ fam.
Wanted to start by saying I 100% support what you are trying to accomplish,
It is very noble and fuse network is a perfect fit with it’s fast speed, and cheap transaction cost.
That being said.

I support the idea of gooddollar growing and branching out to other networks, but I have some questions.

  • What regions/markets are celo big in? What ppl or group are you going after by branching out to Celo?
  • What are Celo trx costs like?
  • Is there a possibility and are there plans to run a celo validator like you do on fuse?
  • will this expansion benefit current holders and users of the G$ ecosystem?
  • will Celo network be easily accessible through the G$ wallet?
  • As a G$ supporter what can I do to help?
18 Likes
#7

Gooddollar and celo seems to have a similar interests in bringing decentralized finance to people in most need of it, with this in mind, I believe this is the growth we need as a community driven protocol, A development aims at making financial inclusion more achievable and accessible to many.

9 Likes
#8

It is a great step to expand to celo it means more value for G$, nice one to the team, appreciate the effort.

7 Likes
#9

Celo is focussing on the emerging economy sector, so it would seem a suitable chain to expand into. The ecosystem partners and community members should be aligned with and help support the GoodDollar vision as well.

For G$ to be successful we need more eyes on the project, more users, more utility. Expansion benefits everyone.

10 Likes
#10

Hi everyone!

Very excited for this proposal and to see the community engaging here :raised_hands:

The GoodDollar Team is hosting a Community Call this Thursday 12th of January and we will be talking and answering questions about this proposal. Hope you all can join! :slight_smile:

:spiral_calendar: 12th January 2023
:watch:2pm GMT time
:round_pushpin:On Discord :point_right: GoodDollar

Set a reminder to your calendar :point_right: AddEvent

See you there!:blue_heart:

11 Likes
#11

Hi!

Very inspired to read a proposal that I have been dreaming about for a long time and that I personally have not promoted due to lack of capacity and knowledge.
I know CELO and some of the proposals that are developed in this chain, I feel very aligned with them.
I fully support this expansion to complement the fantastic space we already enjoy in the FUSE chain.

11 Likes
#12

For us Brazilians it will be a great gain to be able to move G$ to Celo. There are a lot of projects being built in Celo and we can also use cReal and cUSD, which are already accepted in commercial establishments, making it easier to use.

12 Likes
#13

Happy to see you guys are finally talking about expansion rather than migration! Congrats @goodanna @sirpy @Meri_Fernandez and team.

I totally support this GIP. Just wondering if you guys are thinking about any way to choose in a DAO way the indicated params for distributing the assets among the many chains. Like:

why 10% and not 15% or 5%? How do we make the GoodDAO to decide this?

Regarding the UBI G$ minted in Ethereum network? How many will be distributed to Celo? How Many to Fuse?

What about the User Experience? How do you guy plan to manage the implicit complexity in this change?? Would UBI claimers have the option on where to claim their G$s?

14 Likes
#14

That’s just a helper contract that has permissions to mint G$s.
The multichain bridge needs permissions to mint G$s for every G$ locked on ethereum.
The GoodDollarSavings also needs permissions to mint G$s incase it doesnt have enough in its pool for rewards

8 Likes
#15

As always you are more than welcome to start a dao subgroup that would think about these issues and come up with a GIP and we can vote on it.
You could also nominate this group to take continous care of such parameters that are needed to be updated on a continous basis

The 10% is just a conservative number to start with in terms of security risk of a new bridge.

UBI distribution allocation was not decided yet, how about you start a thinking group around it?

Yes you will be able to claim through goodswap.xyz on both fuse and celo

7 Likes
#16

hey @sirpy thanks for the invitation! that actually seems appealing, but AFAIK, there’s no budget nor incentives to start such a group to make the work you guys should be doing but have not the capabilities or bandwith (or just intention?) to do… So I sincerely doubt me or any other community member will be doing so. I hope for you I’m wrong with this…

this seems quite acceptable tho, also good for incentivizing real web3 usage and adoption

fair, still I’d avise you to move forward with a mechanism to include GOOD holders in taking decisions about this and any other relevant parameter that migh be relevant for the multi-chain UBI distribution.

5 Likes
#17

Sounds great :+1:. Kudos!!!

10 Likes
#18

Since celo is a platform acting as a global payment infrastructure for cryptocurrencies that aims to target mobile users. I think it’s a good move as long as it going to impact the good dollar project positively.

8 Likes
#19

Hi @SuppPengu -

  • emerging markets, mostly. the main idea behind expanding to celo was to give the gooddollar community more things to do with their gooddollars as celo has a thriving ecossystem of builders.
  • transaction costs on celo are low. although it fluctuates, most fees are less than $0.001 USD. claiming will continue to be subsidized through goodswap for both chains.
  • the expansion benefits current holders and users of the g$ ecossystem because it creates new opportunities for the community to interact with dapps and use their gooddollars. there are multiple dexes, on/off ramps, financial products like loans and savings groups, wallets, etc…
  • at this moment, the wallet only supports fuse. however, a gooddollar claimer on fuse will be able to claim on celo using goodswap. a new claimer coming from celo will also be able to claim on fuse through goodswap.
  • i personally think that the best way to support is by sharing what you know/do best with other members of the community. for instance, I know that you are an NFT artist… so, you could join our nft initiative on discord and help others who are just starting.
8 Likes
#20

I love the idea of going multichain, would be happy to see the multichain vision finally becoming reality.

I would urge the GoodDollar Foundation and the Celo Foundation both to give full and transparent accounting of the financial arrangements to date and any agreements for future funding and support between Celo and GoodDollar. It’s hard for the community to vote on an agreement as far reaching and complex as this one without knowing the financials behind it.

How will this proposal benefit the financials of the GoodDollar ecosystem?
If there are grants given or promised, into which initiatives would these go?
What is the estimated development and marketing cost to make this transition happen?
Which team will be developing which part of the migration?
How can the community help alleviate any of the costs?

9 Likes