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Glo Dollar starts in Bootstrap phase.
Our goal is to get to High Impact.
High Impact phase:
- We expect every $20K of Glo Dollar to lift one person out of extreme poverty eventually.
- We call that the High Impact phase of Glo.
- Glo Dollar then has the potential to lift millions out of extreme poverty.
- ~Example: a $30bn stablecoin (like USDC) would support 1.5 million people's basic incomes.
- But initially, Glo Dollar has minimal impact.
- At low market caps, we're not generating much basic income. In fact, for the first $2M market cap, we're not generating any basic income.
- As market cap grows, impact accelerates, because we can generate more basic income per dollar of adoption.
During Bootstrap, our goal is to get to High Impact.
- This is a matter of growing market cap.
- We expect to get there within 2024.
- The faster we grow, the faster we can get there.
Help us bootstrap Glo Dollar adoption by holding some Glo Dollar.
- In the very beginning, we rely on goodwill adoption for growth.
- It helps us kickstart traction and proof the model.
- We'll develop Glo into an increasingly useful stablecoin, so we'll rely less and less on pure goodwill. But it's that very early stage where we need the community's collective willpower.
In some more detail:
Nascent stablecoin | Low per-dollar impact
At launch, holding Glo Dollar has no direct impact. We're not yet generating basic income.
For various reasons (see below), it's hard to monetize Glo Dollar at low levels of adoption. Because of this, the Glo Foundation won't be making any money at first, and we're not funding basic incomes yet.
At $2M market cap, basic income generation kicks in.
At even higher market caps, basic income generation accelerates. This is due to economies of scale (explained below) that make it easier to monetize the Glo Dollar business model.
While $2M may sound like a lot of money, for a stablecoin it's tiny. For comparison: the market caps of TrueUSD and Paxos Dollar range in the billions of dollars. So let's speedrun Glo Dollar to the $2M market cap milestone!
During Bootstrap, we're making Glo Dollar increasingly useful.
Right out of the gate, Glo Dollar won't be the best stablecoin:
- Low liquidity
- Few trading pairs
- Not very well known
- Not supported on many chains, protocols and exchanges
We're gradually improving Glo Dollar on all these fronts. Your early adoption makes this exponentially easier!
You can help bootstrap adoption.
Help us get to High Impact by buying Glo Dollars.
High Impact Phase
Mature stablecoin | High per-dollar impact
Gradually improving Glo, we aim to reach the point where...
$20,000 of Glo Dollar adoption = 1 person out of extreme poverty
That is the case when the following is true:
- 80% of Glo Dollar's backing assets are invested
- 4% annual yield on these investments
- 75% of the yield goes to us, the Glo Foundation
Under these metrics, we earn $480 per year for every $20,000 of Glo Dollar market cap ($20,000 * 80% * 4% *75% = $480). We donate that $480 to GiveDirectly's basic income program, which is enough to support one person's basic income.
We aim to reach High Impact within 2024
Given sufficient market cap growth, we think that's achievable because:
- A reserve breakdown of 20% cash / 80% invested is typical for stablecoins in the $100M+ market cap range.
- US treasuries currently yield > 5% per year.
- A revenue split of 75/25 between Glo Foundation and our issuance partner seems fair at higher market caps.
The faster we grow, the quicker we can get there.