- Glo Dollar has launched a stablecoin on the Stellar network where all the proceeds go to charitable causes, with the holders choosing the causes of their choice to direct the funding.
- Each Glo Dollar entitles a user to one vote, with some of the causes the project will target including combating climate change, fighting extreme poverty and promoting Web3 adoption.
Every year, stablecoins yield over $7 billion, but it all goes to the pockets of a few individuals who continue to build massive wealth. But what if the proceeds could go to noble causes, including charities assisting the less fortunate and championing causes critical to humanity’s survival? This is the idea behind Glo Dollar, a new stablecoin launching on the Stellar network.
Glo Dollar is a stablecoin 100% backed by cash and US treasuries, making it ever redeemable 1:1 against the US dollar. It promises monthly audits and attestations for its reserves by a third-party auditor, which is a critical consideration for any stablecoin with global sights.
Glo Dollar 2.0: the stablecoin that funds public goods
Starting today, we’re unlocking $7.4B in funding for public goods and charity
Here’s how you can help by choosing Glo Dollars instead of e.g. USDT
↓ ↓ ↓ pic.twitter.com/l5gtQ0EzHz
— Glo Dollar (@glodollar) April 2, 2024
The stablecoin launched on the Stellar network, the latest in an increasing lineup of developments on the network, as reported by Crypto News Flash. It will also be available on other popular networks, including Ethereum, Base, Polygon, Aribitrum, Optimism and Celo.
Stablecoins have become a critical component of the crypto industry. Today, they are worth $154.2 billion and account for nearly $100 billion in daily trading volume.
The stablecoin business model relies on pooling the funds that investors purchase them with and buying interest-bearing instruments. Most stablecoins rely on US treasury bonds, which earn interest.
According to Glo Dollar, stablecoin companies earn upwards of $7 billion annually. This money is sapped away from the crypto industry by companies like Tether and Circle (which issues the USDC stablecoin).
Glo Dollar is flipping this model and allowing users to direct their profits to charities of their choice.
Glo Dollar Using Stablecoins for Good
Under Glo Dollar’s business model, every penny made from the stablecoins will be split between the Glo Foundation, which is the entity behind the project, and Brale Inc., the company that will issue the stablecoin and maintain enough liquidity to meet redemption obligations. Glo chose to partner with Brale as it already has the required licenses to issue a stablecoin in the US, a process that would have taken the Foundation years and cost millions of dollars.
Glo Foundation will donate its entire share of the profits, it says.
The Glo Foundation will donate every dollar to charities selected by Glo Dollar holders.
The more money we earn → the more we donate → the more charitable causes will be helped.
It added, “This is the magic of Glo Dollar. Simply by holding a stablecoin, you’ll set us up to help fund public goods and charitable causes.”
Glo will work on getting the stablecoin listed on leading exchanges, including Coinbase and Kraken, in the upcoming months. It will also issue Glo Dollar credit cards and launch support services like Glo payroll, Glo credit, etc.
Recommended for you:
Credit: Source link
