eToro has invested $1 million out of its pocket to launch a blockchain experiment that would research how to reduce wealth inequality.
The multi-asset brokerage company announced on Friday that “GoodDollar Experiment” will test a cryptocurrency that pays social interest to the economically underprivileged. These tokens will be distributed among verified participants for free with a sole aim to create a global, open, universal basic income (UBI). However, eToro didn’t mention the process that will go behind the verification and distribution of the planned token airdrop.
GoodDollar in general aims at creating a direct corridor to help exchange money, property, shares, or any source of value, in a transparent, conflict-free manner. The token, according to eToro, will be universally accessible and exchangeable to other global currencies.
“The cryptocurrency will be minted and freely distributed to any person, based on social identity verification on the blockchain. The currency will have a built-in social interest/inflation, which gives more to those who have less,” the eToro press release read.
In a longer run, a UBI system could prove beneficial when it comes to identifying individuals with limited access to the mainstream economy. The unspent tokens could prove an individual’s ownership of them. It would makes it easier for the governments to arrange and distribute state wealth accordingly. Economic subsidies, for instance, could reach the poor directly without being exposed to corrupt intermediaries.
Yoni Assia, co-founder, CEO of eToro, assured that their team of product designers, engineers, and economists are developing a prototype that features smart contracts.
“We believe that we can create a mass-market cryptocurrency that is engineered to reduce inequality and provide a universal basic income,” he said.
“The merging of blockchain technology, growing support for UBI and the realization that wealth inequality must be reduced, may finally converge into a new global economic system that would give all humans the financial freedom to pursue their purpose and happiness.”
Stressing that just 1% of the world’s population owners half of the wealth in 2017, Assia called out for the support from veterans and experts hailing from technology, economy, politics and other similar fields.
“I would like to invite more partners to join this important experiment,” he added. “We’re looking for experts in the fields of decentralized identity, governance, local and global adoption of financial products, and wealth distribution.”
Assia also announced that their team is looking for ambassadors to help spread the word about the GoodDollar Experiment project. The eToro chief also sought funders – investors and capitalists – that could provide financial support to their project.
“So if you’re passionate about using technology for social good, please get in touch,” he added.