The Good Labs team would like to share the following updates to the original proposal, after several months of testing G$ as a gas token on Alfajores and soliciting to the community for feedback.
re: Merge branch 'main' into gd-gas-proposal by sirpy · Pull Request #284 · celo-org/governance · GitHub
Price Oracle
- The Oracle is built calculate the price of G$ <> CELO & vice versa
- The Oracle pulls from two sources
- Ran a service on Open Zepplin Defender that looks at the GoodDollar Reserve price on Mainnet and writes that price to the oracle contract on Celo: https://github.com/GoodDollar/GoodAutotasks/blob/master/tasks/CeloGDOracle.ts
- The G$ price is also read from the subgraph: GoodSubGraphs Subgraph
- As further explained in the section that covers G$ tokenomics, G$ is an automated market maker whose price functions according to a bonding curve formula. As such, the true “G$” price is sourced from the GoodDollar reserve.
- G$ has a price variability of < 10% per year, and as such, makes it useful for gas (all time price information can be found on dashboard.gooddollar.org).
- As a protection mechanism, a rule has been added that if the G$ price varies more than 20%, the new price will not be executed
G$ Tokenomics in Brief
- Augmented Bonding Curve: G$ operates on an Augmented Bonding Curve backed by a monetary reserve held in cDAI. The price is calculated using a modified BancorV1 formula, promoting dynamic pricing. The reserve ratio is currently 55.39%. (See dashboard).
- On-Demand Issuance: G$ issuance responds to demand. New G$ are minted as cDAI deposits flow into the GoodDollar Reserve, maintaining a balance between supply and demand.
- Funding Sources: Funds in the GoodDollar Reserve come from:
- Deposits to the Reserve, fueling G$ issuance and value of UBI.
- Corporate Social Responsibility - Yield Farming, where partners donate interest earned, not capital, integrating with Compound and Aave protocols.
- Liquidity: G$ is fully liquid. The GoodDollar Reserve acts as a primary market maker, ensuring seamless exchangeability. DEXes support liquidity on side-chains, enabling cash-out into various currencies, fostering trust and incentivizing liquidity providers.
- 100% Mission-Driven: All minted G$ are used to to support UBI distribution, ecosystem growth, community initiatives, and rewards contributors; there is no founder allocation, and has been no private sale.
More information on GoodDollar protocol, tokenomics, community and usage can be found in this GoodDollar Overview, on gooddollar.org, or docs.gooddollar.org