Glo Dollar ($USDGLO) is a fiat-backed stablecoin created to lift people out of extreme poverty. Like other fiat-backed stablecoins, USDGLO is minted when (and only when) an equivalent amount of USD is deposited into the reserve. Unlike other stablecoins, the Glo Dollar’s creator, Glo Foundation, donates all of its earnings from the reserve to GiveDirectly, an NGO that makes basic income payments in developing countries.
Through the adoption of a stablecoin, we seek to create a sustainable funding mechanism that can substantially scale up GiveDirectly’s basic income programs. At a $15M market cap, we conservatively expect to receive about $21k per month in revenue from the reserves of Glo Dollar, or $252k annualized, to donate. This would lift 525 people out of extreme poverty. If we capture 15% of the stablecoin market, ~1M people will be lifted out of extreme poverty.
Glo Dollar creates meaningful public goods for the web3 community and the world at large. Beyond our anti-poverty mission, we also seek to put DeFi onto firmer ground by diversifying the stablecoin landscape. Right now, an absurd percentage of the total stablecoin market cap is dominated by USDC and USDT. This creates singular points of failure, especially because the leading stablecoin is so transparently shaky on legal and financial grounds. The more we can introduce stability through diversification to the stablecoin ecosystem, the more the community benefits.
Adopting Glo Dollar as your stablecoin means you’re fighting extreme poverty and helping build a more just and accessible web3 for everyone.
Learn more and discuss Glo Dollar on discuss.octant.app.