eToro has expanded its blockchain-driven social impact initiative by committing $1 million to GoodDollar, a non-profit, community-driven Universal Basic Income (UBI) protocol. The newly staked funds will increase the minting and daily distribution of GoodDollar (G$) tokens to more than 225,000 users worldwide.
The development highlights the growing role of decentralized finance (DeFi) in addressing global economic inequality through transparent and sustainable financial models.
How GoodDollar Works
GoodDollar is a blockchain-based UBI platform that provides registered users with daily digital income at no cost. Rather than relying on continuous donations, the protocol generates value by staking contributed assets in established DeFi platforms.
Donor funds are deployed into decentralized lending protocols such as Aave and Compound. The interest earned from these platforms is used to mint new GoodDollar tokens, which are distributed daily to users as digital Universal Basic Income.
A Reserve-Backed Digital Currency
GoodDollar operates as a reserve-backed cryptocurrency, distinguishing it from speculative digital assets. Each G$ token is supported by yield-generating reserves rather than price speculation or market hype.
This structure ensures transparency in how new tokens are created while supporting long-term sustainability for daily income distribution.
Why eToro Increased Its Investment
GoodDollar was founded in 2020 by eToro to explore how decentralized finance could improve financial inclusion and reduce systemic inequality.
Initially, eToro committed $58,000 to the protocol. Following a successful proof-of-concept phase—during which approximately $16,000 worth of digital UBI was distributed to more than 225,000 participants—the company expanded its support to $1 million.
DeFi and the Future of Universal Basic Income
GoodDollar demonstrates how DeFi-powered UBI can function without government funding or inflationary money creation. By redistributing interest generated through decentralized protocols, the system offers an alternative approach to traditional welfare models.
As blockchain adoption continues to grow globally, initiatives like GoodDollar highlight practical, real-world applications of cryptocurrency technology beyond trading and speculation.
Conclusion
eToro’s $1 million investment marks a significant milestone for GoodDollar and the broader DeFi ecosystem. With a proven model and a growing global user base, GoodDollar continues to stand out as a practical implementation of blockchain-powered Universal Basic Income.
This article is published for news and educational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrencies and DeFi protocols involve risk, including potential loss of capital. Always conduct your own research and consult qualified professionals before making financial decisions.
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