[GIP-13] Expansion of GoodDollar protocol on Celo blockchain

GIP: GIP-13 Title: Expansion of GoodDollar Protocol on Celo Author: Anna Stone Status: Stage IV Track: Protocol Created: 06-01-2023

Description of desired Protocol policy change GoodDollar protocol 9() is a standard for free money as a public good. Its mission is to enable money to flow where it is needed most. It does this through issuing a daily minting and distribution of GoodDollar, a reserve-backed token, as daily universal basic income (UBI) to its members. Today, G$ token functions as a global community currency, that enables its members to transact in G$ peer-to-peer, and provides real digital assets enabling financial and technical access other goods, services and products of the crypto ecosystem.

Since its launch, the G$ token has been designed to function in a multi-chain paradigm. The core smart contracts that govern the monetary policy of the GoodDollar protocol operate on Ethereum mainnet, including the minting of G$ tokens to be distributed as UBI. G$ UBI distribution occurs on L2s and side-chains that are better suited for high volume, low-value transactions. To date, all distribution of G$ from the Reserve has been distributed to whitelisted members on Fuse Network.

This proposal is a vote to approve the expansion of the G$ token and Protocol on the Celo blockchain, including G$ UBI distribution on Celo, with the support of the GoodDAO. The core protocol contracts that govern the GoodDollar monetary policy on Ethereum remain unchanged; GoodDollar protocol will also continue to distribute daily G$ distribution on Fuse. This vote is to approve the development work that the core team is going to do in order to expand and deploy the G$ token, protocol and governance to expand to Celo.

Therefore, this proposal requests to approve the following:

The expansion of the GoodDollar protocol, G$ token and GoodDAO governance module to the Celo blockchain

• The work and deployment that the core development team to adapt the GoodDollar protocol, - G$ token and GoodDAO contracts to Celo: - Deployment of G$ token on the Celo Blockchain - Deployment of GOOD token on the Celo Blockchain - Deployment Multichain.org 14 to be approved as the default bridging service, initially bridging between Ethereum<>Celo - Deployment of Multichain decentralized Ethereum <> Fuse <> Celo bridge, and its limits (see below) - Deployment GoodDollarMintBurnWrapper contract to deploy on Celo. This contracts “wraps” the G$ token and can give G$ minting rights (through the DAO) to other contracts/addresses. Initial minting rights were given to the multichain.org 14 router, with the minting limits below.

All of the above contracts are proposed to be controlled by a Multisig (GnosisSafe) that will be transferred to the control of the GoodDollar Guardians per GIP 2, until the on-chain governance of the GoodDAO is activated.

Following the approval of this proposal, subsequent proposals will be presented to ratify the UBI distribution of G$ on Celo, which will include determining the proportion of daily G$ issuance to be distributed to the Celo blockchain.

Multichain decentralized Ethereum <> Fuse <> Celo bridge

The Multichain bridge will be designed to enable members to easily and efficiently move their G$ tokens across Ethereum, Fuse, and Celo.

The Multichain bridge will be set according to the following limits:

• The bridge was set with limits (via smart contracts) - Incoming (ETH → CELO/FUSE) : 300M per TX - Outgoing (CELO/FUSE → ETH): 300M per TX, daily limit of 50% of total supply on the side-chains - The bridge fee will be either 0.1% of fees transferred, or a minimum of $80 USD to bridge between Fuse and Celo to Ethereum. The minimum fee will be $0.90 USD when bridging G$ to a sidechain.
• For security purposes, the best practice is set limits on the use of the bridge. - Set the GoodDollar Limited LLC as the Bridge Guardian (can modify bridge limits) - Those limits can be modified in the future by the GoodDAO or a yet to be created bridge Guardian - The initial limits chosen will evolve as the GoodDollar sidechain ecosystem develops
• To transfer 10% of the locked GoodDollars currently on the Fuse <> Ethereum bridge to the Multichain bridge on Ethereum. This will enable supply exit liquidity when bridging from Celo or Fuse to Ethereum. This has an additional benefit of distributing risk. The GoodDAO will not be restricted to approving a single bridge but can approve multiple bridging services, as a risk allocation strategy.

Motivation for asking changes in such Protocol policy

Celo is a carbon-negative EVM-compatible blockchain that is accessible to anyone with a smartphone. Celo’s core mission is to build an open financial system that creates the conditions of prosperity for all.

GoodDollar and Celo are strongly aligned in their individual missions. Both GoodDollar and Celo are chasing the same goal: to bring DeFI (decentralized finance) to the people that are in most need of DeFi, specifically unbanked people and emergency market economies that have poor financial systems.

The purpose of GoodDollar’s expansion to Celo is to ensure that G$ is in an ecosystem that will enable the protocol to grow by giving more utility to the G$ token and its holders, and to put the protocol in the ecosystem where it stands the best chances to thrive. With shared mission alignment, we believe GoodDollar and Celo community members offer the GoodDollar protocol the best chance to thrive by accessing like-minded stakeholders the opportunity to contribute to the GoodDollar protocol and GoodDAO. This will continue to promote the idea of community led-growth and governance, just within a larger community.

Celo has developed an ecosystem that prioritizes its users in a way that also meets the needs of the G$ community. This includes particular dapps that are focused on financial access and empowerment for those from financially underserved populations, such as:

• Savings dApps
• Microloans
• P2P Markeplaces
• Mobile minutes

Expanding G$ onto the Celo blockchain opens the door for users to connect and utilize their G$ tokens in Dapps across the Celo ecosystem. The expansion to Celo will create multiple growth opportunities for GoodDollar across all areas of the project: engineering, integrations, business development, community development and activation, advocacy and education. The GoodDollar Team is excited to keep learning and growing with you!