[GIP 23] Redeployment GoodDollar Ethereum Reserve

Governance Proposals
#1

GIP: GIP-23
Title: Redeployment GoodDollar Ethereum Reserve
Status: Stage IV
Track: Protocol
Created: 25/10/2024
Edit: 29/10/2024

Background

GoodDollar protocol’s mission is to provide a sustainable, decentralized model to distribute Universal Basic Income in an open model. As mentioned in the white paper, “the GoodDollar protocol presents a community-driven, distributed framework designed to generate, fund and distribute global basic income via the GoodDollar token (G$).

The aim of this proposal is to activate the core GoodDollar protocol to reinstate the minting of G$ UBI as accordance to the original protocol model.

In December 2023 the GoodDollar Reserve suffered an exploit and was paused by the GoodDAO (more details here). Key elements included:

  • The GoodDollar Reserve contract has been paused
  • No more new G$ have been minted. Minting of new G$ has been disabled due to the Reserve’s lack of funds.
  • G$ liquidity on side-chains has remained low.

The GoodDollar mission remains unchanged. GoodDollar continues its commitment to building an open, sustainable Universal Basic Income Protocol through blockchain technology

Why to Restore the GoodDollar Ethereum Reserve?

  • The Reserve is the enabling technological and financial enabler to GoodDollar protocol’s creation of new universal basic income.
  • The GoodDollar Reserve has successfully worked to create a predictable token model from launch to date based on these three principals: sustainability, stability and liquidity.
    • The GoodDollar Reserve has demonstrated remarkable success in maintaining a stable and consistently growing price across various market conditions, including both bear and bull markets.
    • The stability of G$, as a reserve-backed token, has been instrumental in fostering price stability on side-chains decentralized exchanges (DEX)
  • The Reserve protocol model has empowered GoodDollar to distribute more value in the Ecosystem that the funds directly held by the GoodDollar Reserve.
    • A key aspect of this mechanism lies in the ability to mint money according to the Reserve Ratio, enabling a more extensive circulation of value within the GoodDollar Ecosystem than the actual value present in the collateral held in the GoodDollar Reserve.
  • Feedback from the Community shows that they valued the Reserve model and the protocol’s subsequent relative price stability.

Proposed changes and updates
These are the core Protocol contracts to be updated:

Current situation Proposal Contract Address
GoodDollar Reserve Paused To Activate 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0
Minting UBI Paused To Activate 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0
GoodFundManager Paused To Upgrade and Activate 0x0c6c80d2061afa35e160f3799411d83bdeea0a5a
GoodStaking Contracts (on Ethereum) Active Paused 0x7b7246c78e2f900d17646ff0cb2ec47d6ba10754 / 0x3ff2d8eb2573819a9ef7167d2ba6fd6d31b17f4f
GOOD rewards Active Paused 0x5766cf4b2fdb09d986eb1783d276013c224e28c8
GDX Active Disabled 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0
Exit contribution 3% Increase to 10% 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0
Fuse bridge (managed by fuse) Active To Deprecate 0xD5D11eE582c8931F336fbcd135e98CEE4DB8CCB0
On chain proposals require Guardians approval - To Upgrade 0x57ee6ceff51cb30ecb1245934a882c500fbec1e9
1 G$ price at mint Paused .0001$ 0xa150a825d425B36329D8294eeF8bD0fE68f8F6E0

  • Reactivate and Upgrade Ethereum Mainnet Contracts

    • Reactivate GoodDollar reserve contract that was paused by the GoodDAO Protocol Guardians. This will restore the minting of UBI and enable the buying/selling G$s from the Reserve contracts.

    • The G$ token will be launched on its initial launch price: 1 G$ = 0.0001$

    • Upgrade and Reactivate GoodFundManager contract

      • This contract is responsible for collecting interest earned from staking contracts and then initiating the UBI minting process by calling the GoodDollar Reserve.
      • This contract will be upgraded with a fix for the vulnerability identified during the hack.

    • GoodStaking contracts will no longer distribute GOOD rewards or accept new staking, as they have not been used extensively by the community. GOOD will still be distributed to claimers and users who stake their G$ on Fuse Network.

    • To discourage selling G$ as soon as the reserve is deployed the GDX token will be disabled and the exit contribution will be increased to 10%, with the intention of reducing it back to 3% in the future.

    • The legacy Ethereum<>Fuse bridge operated by the Fuse team will be deprecated and all liquidity moved to the new Message Passing Bridge (link to docs). There’s still going to be a ETH<>G$ chain bridge will enable people to still move their G$.

    • On-chain proposals to the governance contracts on Fuse/Ethereum will require the GoodDAO Guardians approval, to prevent malicious proposals, since the on-chain governance has not been used so far.

    All contracts that are part of this deployment have been audited.
    Audit: Smart Contract Audit Report for GoodDollar - Sayfer

Next Steps
Protocol updates as part of this GIP will be voted on Snapshot and executed on-chain by the GoodDollar Guardians, per GIP 2 .

9 Likes
Wallet link is disfunctional
The GoodDAO Needs Us!
#2

I largely support the proposal; it’s something necessary for the community—from those who were beginning to see it as a waste of time to those who have invested and shown concern for their funds.

However, I still have two questions. If the ETH to FUSE bridge is deactivated, do we have any other options to send G$ from ETH to, for example, Celo? Currently, that’s the only way I know to send G$ from ETH.

Secondly, if GOOD rewards are suspended, where will those tokens go? It would be helpful for the proposal to define this. In my view, the most prudent option would be for them to go to the basic income claimants. This raises another question: what incentive does the protocol sponsor have? When the protocol was launched, it was proposed that both the supporter and the claimant would have equal relevance, leading to an equal distribution. Would this suspension not put additional pressure on the reserve when the protocol is relaunched?

6 Likes
#3

I have been following the GoodDollar community for the past 3 years and I have seen the impact of the recent event had on our users. While I understand the need to address the issues with the Reserve and get G$ minting back on track, I have a few concerns about this proposal. For example, I am worried about the impact of deactivating the ETH to FUSE bridge. It is important to ensure that users have clear and easy ways to move their G$ between chains. I also want to know more about what will happen to the GOOD rewards, and how this will affect the overall incentive structure of the protocol.

I am hopeful that this proposal will lead to a more stable and thriving GoodDollar ecosystem. I believe that a strong and transparent approach is crucial to rebuilding trust and attracting new users. I am eager to see how this proposal will be implemented and what impact it will have on the future of GoodDollar.

3 Likes
#4

The article outlines a proposal to reactivate the GoodDollar protocol after a December 2023 exploit that paused its reserve and halted the minting of the GoodDollar token (G$). The proposal aims to restore the functionality of the GoodDollar Reserve, which is essential for distributing Universal Basic Income (UBI) through the G$ token.Majorly basing on

Restoration of Functionality
Stability and Sustainability
Contract Updates
And Community Concerns that is the questions paused by the people.
#GoodDollar for life​:muscle::muscle::muscle:

2 Likes
#5

This is really good news. It sounds like a solid way forward. Let’s go!

2 Likes
#7

I want to make a clarification, I support the proposal and I agree that GOOD rewards was not widely used, which is why I think it should go directly to active claimants (for me it is a very good distribution option) except that the proposal leaves that whole issue adrift

4 Likes
#8

An empty proposal. During all this time, those who supported the project took refuge in voting tokens with the intention of directing it on the right path. Today they present us with a relaunch value, inducing us to vote yes or yes, since the majority will want to recover their funds. However, they do not tell us what will happen to the GOODs, and I see that this is the concern of many. It will be a vote to think about if it is not restructured. We have generated a token for a long time and in the end we do not know what its fate will be.

3 Likes
#9

@Chardztreb

  1. You can still bridge using the new bridges, see second link in the proposal linking to the bridge docs.
    There’s also a bounty to implement a UI to the bridge here:
    Feat: add UI support for GoodDollar message passing bridge · Issue #203 · GoodDollar/GoodWeb3-Mono · GitHub
  2. GOOD is still distributed to claimers on Fuse + staking G$ on Fuse.
    The longterm plan is to move GOOD distribution to Celo.
3 Likes
#11

Thank you for the information @sirpy ! I appreciate the new bridge options and the UI bounty. Howeve, I am still have concerned about the long-term impact of deactivating the ETH to FUSE Bridge, especially for new users. I’m also curious about the timeline and reasons for moving GOOD to CELO. could you elaborate on how this will affect current Good Holders and the overall incentive structure? open communication and transparency are crucial for rebuilding trust and attracting new users.

2 Likes
#12

Hi Chardztreb,
I don’t know all the details, but in general Fuse is being phased out in favour of Celo. The reason is that the Celo community spirit is much more in line with the non-profit community spirit of Gooddollar.

I guess for new users that is no problem. They will be on Celo anyway.

4 Likes
#13

I thought that the rewards in GOOD would be completely suspended.
I think that there should be a rebalance to leave a more significant amount for the community. I don’t know if more people agree with adding that modification, for example 60% for claimants and 40% for G$ staking supporters

The last questios, that expansion rate will be increased, will it remain the same or will it decrease? I am intrigued to understand what will happen, if I am not mistaken, keeping it high can serve to contain the massive sales of G$ although the emission will increase. Will the expansion rate be maintained or what will happen if my memory serves me right? It was at 0.1 or more?

4 Likes
#14

Thanks for the clarification. That makes sense. I will be sure to keep it mind.

1 Like
#15

I agree, we should rethink how GOOD works and distributed in 2025.
The expansion ratio will stay at 10%

2 Likes
#16

I’m not sure what you mean, there’s still gonna be an ETH-Fuse bridge.
Celo is G$ main chain, where most users are and where the foundation gets support from.
For such a small project it is very hard to maintain support for multiple chains.
Currently when you vote on snapshot your GOOD is calculated from all chains where you have it.
You will still have your GOOD on fuse, only new GOOD will be minted on Celo.

2 Likes
#17

Hello, everyone! It’s fantastic to see such active community engagement around this proposal.

The proposal has just been updated to clarify that the distribution of GOOD tokens will continue for both claimers and those staking G$ on Fuse. As @sirpy highlighted, the community should revisit and discuss broader adjustments to the GOOD token distribution and governance model in 2025.

Additionally, we’ve clarified that users will still have options from different bridges to move their G$.

3 Likes
#18

I support this proposal strongly. Don’t forget FUSE network is developed quickly. One more network mean one more opportunity for increasing the community. Sometimes this network is better than that network and sometimes otherwise.

About GOOD rewards, when it is moved to CELO so what happens to GOOD on FUSE? Will it be dropped? Will new vote base on CELO GOOD only?

I think it is important to redo GOOD distribution, stakers shouldn’t receive GOOD rewards but donaters / supporters (by cUSD) should receive GOOD rewards and ofcourse claimers also receive GOOD rewards too. No more staking programs, it should be replaced by liquidity programs where who provides liquidities can receive rewards by G$.

#19

See the messages above from @sirpy and @GoodLabs

#20

GOOD rewards will still be distributed to Claimers + staking G$ on Fuse Network. Only GoodStaking contracts on Ethereum network will be disabled, since they have not been used extensively by the community.

The longterm plan is to move GOOD distribution to Celo.

2 Likes
#21

This proposal has been launched to voting: Snapshot

Start date Oct 31, 2024, 6:49 PM (GMT+1)
End date Nov 7, 2024, 6:49 PM (GMT+1)

2 Likes
#22

Very good, just voted!

2 Likes