Investment platform eToro has announced a USD 1 Million donation towards the GoodDollar open source wealth inequality experiment. GoodDollar makes use of a cryptocurrency which would allow the unbanked to benefit from social interest income based on a type of universal basic income (UBI).
The GoodDollar experiment
The GoodDollar experiment is a universal basic income model using smart contracts to distribute a non-speculative cryptocurrency to global citizens. While most cryptocurrencies start with the best of intentions, speculation can often warp the initial idea into something entirely different. Written in bold on the GoodDollar webpage is “The 42 richest people on Earth have more wealth than the poorest 3.7 billion”.
The goal of the project right now is to simply experiment with the wealth distribution model using distributed ledger technology. GoodDollar is 100% not-for-profit and is currently creating an ecosystem including academics, NGOs, ethical investors, investment platform agencies, and companies – in short, anybody with interest in reducing world inequality using DLT. The project also cites the rise of robots which can displace jobs and further polarize the wealth divide, and the eToro CEO agrees. According to Yoni Assia, CEO of the eToro investment platform, tech companies have to be more inclusive with the rise of technology –
“The merging of blockchain technology, growing support for UBI and the realization that wealth inequality must be reduced, may finally converge into a new global economic system that would give all humans the financial freedom to pursue their purpose and happiness.”
Universal basic income principals
The principals of a universal basic income are that everybody has enough to meet basic needs, which most people are aligned with. However, the majority of cryptocurrency advocates are proponents of a free market philosophy, where wealth is distributed based on the skill of the worker. Government mandated policies are viewed as a large part of the problem with market disturbances due to policies such as money printing. UBI projects are typically tightly related to socialist policies and big government with an arbitrary distribution of wealth. Notable proponents of a universal basic income include Barack Obama, Elon Musk, and Bill Gates.
Still, this project provides a much more decentralized and data-based model on a global instead of a national scale, which libertarians will be much more amenable towards. There is a big difference between forced taxation and voluntary donations for this new type of distribution which will be underpinned by DLT. People will be able to see exactly where their funds are going on a transparent blockchain without any of the complications that have arisen in the charitable donations sector. Time will tell how effective the project turns out to be, but it is fair to say that a UBI model based on crypto has a much stronger foundation than wealth distribution based on centralized fiat distribution.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.