As the name suggests, Universal Basic Income is the idea of providing the basic amount of money to everyone regardless of the person's social standard or income, that would cover the person's basic necessities. The main purpose or the motivation of the UBI is to up-rise every person to a basic standard of living where at least basic necessities could get fulfilled.

Many projects were started in order to implement the idea of Universal Basic Income (UBI), which includes government-backed experiments, and now people are trying to bring the solution of UBI through blockchain and crypto technology and GoodDollar is one of the leading projects which is using Blockchain and Crypto for bringing UBI to the world.

Why We Need Universal Basic Income?

Well, we can clearly see that wealth inequality is rising tremendously in the past couple of years and the recent global pandemic showed us how fragile social safety, is in both developed as well as developing economies. By providing UBI, we can secure the basic necessities. One of the reports published based on the UBI surveys carries out in various countries has suggested that the UBI helps in improving the social standard along with a boost in happiness, and school attendance, and it also helps in reducing the crimes in the area.

An experiment on UBI was carried out in various parts of various countries including the United States, Canada, Iran, Kenya, and many other countries. Following is the map from Vox, showing where the concept of Universal Basic Income has been tried:

What Is GoodDollar?

GoodDollar is a not-for-profit crypto project which is intended to implement the idea of Universal Basic Income using Blockchain and cryptocurrency technologies. The project works on a very simple model, it harnesses the power of decentralized finance and distributes the interest generated to the users. The vision or mission of the GoodDollar project is to minimize wealth inequality and provide everyone access to their basic needs. Supporters can lend their crypto for good and stake it on a third-party platform (Currently Compound Finance) and the interest earned over it gets distributed in the form of native token G$. A simple concept but already impacting many lives throughout the world. You can check the economic model of GoodDollar in the following video:

GoodDollar was founded in 2017 by Yomi Assia, also the founder and CEO of very reputed eToro. Although eToro and GoodDollar are completely different, eToro has been a major contributor to the Trust Fund which generated the interest. As the project is backed by a reputed player like eToro many other individuals came forward to contribute to the Trust Fund, which currently stands at $1,218,882 USD. Even the project is adopted heavily in various countries, especially Nigeria and Vietnam. You can get the idea of how largely GoodDollar is spread across the globe and specific claimers country-wise:

To this date, a total of 461,583 unique users have claimed the G$ from the project and 39,557 daily users are claiming, that is a very large number for a project to retain that amount of people and bring them back every day on the platform. Well, the daily distribution amount is also good, the current average daily distribution is $376.23 USD

Conclusion

GoodDollar is a great experiment and yes a great way shows how Blockchain and cryptocurrency can be used for social benefits and implementing ideas like UBI which were not possible using traditional ways. Yes, there are many critics of UBI and it also has some issues of its own but the way GoodDollar is implementing the concept of UBI and the response it is getting from all over the world is great and has already started to show the impact.

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