Embedding philanthropy into Mantle’s treasury
We propose that Mantle swaps $1M of its treasury (0.45% of its current stablecoin holdings, and 0.06% of its total treasury) for Glo Dollar, a stablecoin that generates basic income for people living in extreme poverty.
Doing so has the following benefits:
Mantle would embed philanthropy into its treasury, and we expect that eventually, this $1M in Glo Dollar would be enough to lift 50 people out of extreme poverty at no cost to Mantle.
By adding USDGLO alongside its USDC and USDT holdings, Mantle would further diversify its holdings in stablecoins.
Mantle would support the development of an alternative regulated stablecoin that benefits the public and the broader crypto ecosystem, instead of a few shareholders.
It would be the first time for Mantle to embed philanthropy into the very core of its treasury.
Glo Dollar is a fully backed stablecoin that enables holders to help end extreme poverty, without donating anything.
Glo Dollar is US regulated and 1:1 backed by a reserve of cash and US Treasuries. When the Glo Foundation receives revenue from the reserve, they donate it to GiveDirectly’s basic income programs that lift people out of extreme poverty. (See this article for why we donate to GiveDirectly.)
At scale, we expect every $20,000 of Glo Dollar market cap to lift 1 person out of extreme poverty. At Tether’s current market cap, that corresponds to lifting four million people out of extreme poverty. Even at smaller caps, this amounts to millions of dollars of money generated for GiveDirectly.
By choosing to put some of its treasury into Glo Dollar, Mantle can embed philanthropy into its everyday operations and leverage Mantle’s treasury as a force for social good.
Mantle, pioneering a vision in shaping a collaborative decentralized economy, can lead by example by integrating Glo Dollars into its treasury. This step demonstrates that this economy can also uplift the world’s most underprivileged.
Though not digital, a global basic income for anyone who falls below the extreme poverty line can be considered an important public good. Glo Dollar is a donation-independent funding mechanism that can support such a basic income perpetually and at scale. Anyone holding Glo Dollars contributes to this funding mechanism at no cost. Affecting 700 million people, extreme poverty is a highly costly problem in terms of human potential and wellbeing, but it is solvable through unconditional cash transfers. The bottleneck for these programs is funding.
As a final consideration: the incumbent stablecoins already function as a public good, yet are managed by for-profit entities incentivized to choose the benefit of shareholders over the benefit of the ecosystem. Even if you do not hold USDC or USDT yourself, most of DeFi runs on them under the hood.
Check out the Glo Dollar website for more information on everything you might want to know about Glo Dollar, such as how Glo Dollar works and how we issue Glo Dollars in a regulatory compliant manner by partnering with Brale.
At the time of writing, Mantle holds 13.76% of its treasury in stablecoins; 9.74% (or $154.7M) in USDC, and 4.02% (or $63.91M) in USDT.
While USDC is a low-risk and well-run stablecoin, the market’s response to Silicon Valley Bank’s collapse and the subsequent depegging of USDC emphasize the importance of mitigating exposure to a single stablecoin. By diversifying its stablecoin holdings, Mantle can enhance its resilience and ensure continued operations.
Beyond individual treasuries, the broader crypto ecosystem stands to benefit from increased stablecoin diversification. Stablecoins are critical crypto infrastructure, facilitating liquidity, trading, and financial operations in the entire crypto space.
The over-reliance of the ecosystem on the USDC / USDT duopoly creates a dangerous dynamic in which any disruptions or regulatory actions targeting a specific stablecoin can have far-reaching consequences. The USDC depeg had endless downstream effects, and Vitalik says the duopoly has too much power over Ethereum.
We propose that Mantle exchanges $1,000,000 from its current stablecoin holdings for Glo Dollar and commits to holding the Glo Dollars.
To execute, we propose the following steps:
Appoint a DAO coordinator who collaborates with the Glo Dollar team on this proposal.
Swap USDC/USDT for Glo Dollar using Uniswap or an OTC desk.
Transfer exchanged Glo Dollar to Mantle’s treasury.
Co-market the completion of diversification efforts with Mantle and Glo Dollar communities as well as the broader world.
Glo Dollars are always exchangeable 1:1 for USDC with our issuing partner Brale, should the need arise to revert this position for any given cause.
Swap $1,000,000 of Mantle’s current stablecoin holdings for $1,000,000 Glo Dollars, do not swap, or do swap after making specific changes to the proposal.
Yes to swap $1,000,000 of Mantle’s current stablecoin holdings for Glo Dollars.
No do not swap current stablecoin holdings for Glo Dollars.
To swap $1,000,000 of Mantle’s current stablecoin holdings for $1,000,000 if changes to the proposal were made.
Our objective is for everyone to prosper through this proposal: Mantle, Glo Dollar, and, most significantly, the 700 million individuals living in extreme poverty.
Smaller market cap = less liquidity. While we’re working our way through the cold-start problem of growing a stablecoin’s market cap, our market cap is only ~$1.5M at the time of writing. Worth noting that Glo Dollars Glo Dollars are always exchangeable 1:1 for USDC with our issuing partner Brale.
The Glo Foundation has not yet donated to GiveDirectly. As soon as we reach a market cap of $2M, Glo Dollar will initiate donations to GiveDirectly (see more info about revenue sharing scheme with Brale). Progressing from $1.5M to $2.5M would immediately pave the way for donations to GiveDirectly. With Mantle, we can begin to start lifting people out of extreme poverty.
Glo Dollar is not a yield-bearing asset. Adopting Glo Dollars would be a choice made in light of the three benefits shared under ‘Background’.