If you wanted to cut a very long story very short you could simply say that GoodDao is a decentralised autonomous organisation (that’s what the acronym DAO stands for) designed to run GoodDollar, a form of crypto-based UBI, which stands for Universal Basic Income.
And this begs three questions: what is a DAO, what is UBI and what is the connection here?
Sit down, grab a cup of coffee and hopefully we can clear this up with a three-part answer.
About the DAO
Both private and public companies rely on hierarchies of executives: nothing happens without the CEO’s say-so and, in the case of a public company, the shareholders’ approval.
This is obviously heavily centralised and as whole point of crypto is decentralisation, a different system was needed. That’s exactly why DAOs exist.
You can think of a DAO as a public company with no CEO and no executives. You and I are the shareholders and we make the decisions.
The structure is more democratic. And this is in the literal sense of the word, without necessarily adding or subtracting moral meaning to the expression.
Any member of GoodDollar can vote. And some members can make proposals. This is based on the amount of GOOD, GoodDollar’s governance token (more on that in a second), you own. Any member who owns over 0.25% of the total GOOD supply can make proposals and any other member can vote.
On top of that, the GoodDao uses blockchain-based smart contracts, which means you don’t need to trust the other party to do the right thing because the contract itself is programmed to do the right thing. And it can’t be changed.
The initial batch of 96 million GOOD tokens will be distributed among claimers (50%), Trust stakers (25%) and holders (25%). After that, there will be an identical annual allocation.
And we hear you, we hear you. But wait a second – you say – owning GOOD is basically like owning shares of a company so how do you make sure the system stays decentralised? Easy. The GOOD token has a fixed value of 0 because it can’t be traded. Yup. Zero.
This is designed to encourage people to hold on their GOOD tokens if they believe in the project, not just because they’re looking to make a quick buck.
UBI – Universal Basic Income – is a form financial income designed to meet a person’s basic needs. The idea is gaining traction, especially now that we’re heading towards a reality where technological advances will inevitably automate a lot of jobs out of existence.
The case for UBI has been made a million different times in a million different ways and form, in different geographies but, so far at least, it has never been seriously tried with crypto.
Crypto-based UBI is also aiming to solve another issue by empowering people who live in areas of the world where the banking system is failed or dysfunctional.
With GoodDollar, all you have to do is log in to your account once a day and tap a button.
We’re laying the foundations for something that can, and should, and hopefully will, grow and thrive. Giving people the opportunity to be in charge of their own financial means.
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