Title: Disable GDX Token when buying G$s
Author: Hadar Rottenberg
Status: Stage III
Track: Protocol
Created: November 1, 2023
TLDR:
GIP 20: Current State and Problems
In the GoodDollar Protocol, G$ is a token issued from the GoodReserve and distributed as daily basic income to registered members. When G$ is sold back to the Reserve, it is subject to a 3% exit contribution.
GoodDollar Protocol V2 launched with GDX, an ERC-20 token that is minted 1:1 to the buyer for every G$ bought directly from the GoodDollar Reserve. The original idea behind the GDX token was to incentivize investors to buy G$s from the Reserve to support the UBI system, while not subjecting supporters to the exit contribution.
However, we have not seen the market react accordingly in the 2 years since the GoodDollar V2 Protocol upgrade, when GDX was introduced. Additionally, in the recent efforts to get G$ listed and accepted as a gas token on Celo, some concerns were raised regarding price manipulation of G$ from the Reserve primary market.
To address these concerns, we propose the following change:
Proposed Change: Stop Minting GDX and Subject All Newly Purchased G$s to the 3% Exit Contribution
Under this change, all G$ sold to the Reserve will be subject to a 3% fee. However, existing GDX tokens in circulation can still be used to get the contribution exemption. For these GDX holders, G$ can be sold back to the GoodReserve without being subject to a 3% fee.
If approved, after ratification no more GDX will be minted when a wallet buys G$ from the Reserve.
GDX Token Address : 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0