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Whitepaper

 

Overview

GC as described in this Whitepaper is a proposed cryptocurrency that tracks donations and zero-interest loans to nonprofits. Because GC's tokens (coins) either earn an interest-like return or can be redeemed for fiat by calling the loan in, the coins are worth something even to a person uninterested in helping nonprofits.

GC turns the nonprofits into banks, receiving and then later safely returning users' money.

When your money is not being used, it just sits there. Wouldn't it be nice to be sitting in a place that propels forward the missions of worldwide nonprofits? And when you do use your GC for transactions, GC lets the underlying money stay with the nonprofits, transacting simply tokens representing that money.

GlobalChange: Local and global financial transactions you can feel good about.

More details

There is more than one way to implement the GC system, and different ways can be networked together as long as they fulfill interoperability requirements. Here is one way:

GC defines a public address or addresses to place donations. Donors can place U.S. dollar-equivalents at this address, for example placing a stablecoin like USDC which is based on U.S. dollars. 

GC can start out linked to dollars, but GC also has the opportunity to account for inflation as follows.

To receive GC-Standard tokens, a donor provides the charity's public address with enough money to buy some number of "mini baskets" of goods and services. A "mini basket" is always 1/262 of a full "CPI" "basket," where a CPI basket represents the current cost to buy a known fixed set of goods and services. At the start of GC, and by design for the sake of a good mnemonic, one mini basket happens to cost $1, so 1GC = 1USD. This is because current CPI is 262.

The charity then receives a message saying, "Money has been provided to you at the following address. You can take this money from the address and use it however you like, but note that it is a loan and upon receiving notice it needs to be returned within 18 months. Also, if you do not go pick up the money from the address, and leave it sitting there, the amount available might diminish as others in the system can put the money to good use. If you want to use the money, you are free to and should withdraw it. If this works for you, click here for additional access information." 

GC issues the donor a GC token for every mini-basket the fiat would be able to purchase. 

When a GC-Standard owner wants to redeem the GC for fiat, the rule of thumb is "basket in, basket out." GC strives to be a stable, inflation-resistant store of value. One GC can be redeemed for howevermuch fiat it currently costs by buy one mini-basket. At time period 1, you can store value in GC instead of buying a mini-based of goods and services; and at time period 2, you can convert your GC into howevermuch fiat mini-basket loans have recently been costing at the fixed exchange rate of 1/262 CPI. When you redeem a GC coin, a recent loan of a mini-basket-amount-of-fiat is called in, and, at most 18 months later, you can receive the stablecoin USDC/fiat. To speed up this process - hopefully, it is never a full 18 months - after the notice is given for the loan to be called in, GC protocol can provide that amount of fiat out of otherwise untouched USDC sitting at any charity's address (which can be replaced one-for-one as the called-in loan is repaid). In this case, whatever USDC has been sitting the longest, unclaimed and unused, can be used first. Upon redemption, the newest loans are called in and their exchange rate determines the fiat given for redemption; and the oldest USDC sitting in public addresses can be used to disburse, to be replenished as the called-in loan returns USDC to the charity's address to be available to GC protocol.

Notice that all GC-Standard coins are interchangeable when it comes to redemption for fiat; they all work the same regardless of when or for what charity they were minted. Each one can be redeemed for a mini-basket-worth of fiat at the most recent exchange rates available at the time of redemption.

 

When GC-Standard is redeemed and fiat returned, the token must be destroyed - delisted.

Unlike other cryptocurrencies, there is a natural cap on price; one might not expect to speculate or profit from a bubble. Instead of buying it from other people, you can always get more GC at the current exchange rate by placing stablecoin at a charity's address, and you can always "sell" your GC at recent exchange rates too.

Format and Interoperability

GC coins come in mostly same denominations as USD: .01, .05, .10, .25, 1, 5, 10, 20, 50, 100, 1000. Each coin (or "bill") includes a fixed prefix header listing its denomination (amount), date of minting, and nonprofit charity it was originally intended to help. As long as this prefix is held constant, and as long as rules of minting are respected (e.g. using the agreed-upon exchange rate), different independent blockchains with different underlying technologies can independently implement GlobalChange, transferring coins between each other by delisting within one blockchain and respawning within the new one. 

GC Gift

A GC holder can permit a charity to keep, instead of having to return, loans in the amount of the held coin. This happens by choosing to donate money to nonprofits, or by convert GC-Standard coins into GC-Gift coins.  

Stablecoins in a pool can accumulate interest. GC Protocol moves this interest into a GC Central Fund. When GC Central Fund itself accumulates interest, some is deposited into the wallets of holders of GC-Gift coins. 

Older GC-Gift coins get a higher rate (this is on a slope) so it is always better to get into GC-Gift sooner rather than later. Gift coins are interchangeable with each other for spending; but older ones are worth more to some. This is like fiat coins: you can spend all coins equally well, but antiques are more valuable to some, making for a bit of an antiques market. So if you have an old coin, you can spend it, or you can bring it to an antique market; this is just a question of your interests or disposition.

GC-Gift coins cannot be back-converted to GC, and cannot be redeemed for fiat. 

Any recipient of payments in GC who indicates that they will accept GC-standard and GC- Gift interchangeably receives badges and elevated visibility and status.

Finally, GC-Gift will be minted and distributed to network participants in the amount of 1% per each user-initiated GC transaction, to represent the value that such financial transactions bring. Part of this sum can be distributed to GC-Standard holders, to help incentivize keeping GC in the system rather than redeeming for fiat. Also see Interoperability for an additional source of self-minted GC-Gift coins representing system value.

A Social Tail

Each GC coin has a bit of a personality. It has a denomination. It was minted to represent assistance to a particular nonprofit's mission. It has a certain age. Let's imagine each coin/bill as viewable through a filter as a cute, animated icon displaying some information about itself. Each coin can even have a transaction "notes" section, messages passed from owner to owner. (This should be wipeable; the current owner can clear the notes or keep a chain of notes going).

Calling in a loan will require killing this character, in some way. If you would rather not spend or kill a particular coin that you like, you can keep it - and get other coins to spend instead just by donating fiat to a nonprofit.

 

Each GC token can have a story. Your wallet can tell you all the nonprofits and missions your GC Coin's corresponding fiat has connected with. You can have that story, and know you are creating value by allowing the GC Coin to exist. How nice it will be to see that a vendor accepts GC? You can donate to a nonprofit and also use the GC you received to buy coffee - and from a like-minded person. 

GC brings value to the world through its users forming a network of low-friction and secure transactions, and the primary beneficiaries are nonprofits' missions and GC's user base itself. It's a win-win.

All the coins/bills/denomination, both GC-Standard and GC-Gift, will be unique and "cute," both collectable and spendable. They will be born to a certain charity; and a GC-Standard coin may retire (or "die," if that is not too morbid for a cute coin) when it is redeemed and is used to retire a loan. Coins you used to have can potentially send back postcards letting you know what continents they have been visiting.

Bootstrapping Beginning

If you can make a wallet that works this way, feel free to do so, and independent wallets and blockchain systems should be able to exchange GC by preserving prefix codes when transferring between each other (see Interoperability above).

Various blockchain and interchange technologies would work, as long as they are more energy-efficient than Bitcoin. For example, note that in a system with inherently costly coins like GC, forming consensus based on one vote per coin rather than one vote per CPU would afford protection against double-spending, but without expensive CPU costs. Various other methods would also work, including new methods that are yet to be developed. The system could even be implemented solely with paper, perhaps, though with various effects on  efficiencies and pros and cons as a currency.

You are free to do this yourself; with your network of coders and nonprofits. Nothing is stopping GC from turning nonprofits into banks, and letting the developing world benefit from being a bank-like storehouse and financial transactions network.

GlobalChange.io is a natural coordination point to make sure interoperability succeeds.