The Total Amount of Glo is the most important success metric for Global Income Coin.
The Total Amount of Glo is the amount of Glo tokens that currently exist in the world. The number indicates how much money Glo has replaced—or, put another way, how much money people have collectively converted to Glo.
If you buy $1000 of Glo, you grow the Total Amount of Glo by 1000.
The higher the Total Amount of Glo, the more basic income we can generate, the more people we can lift out of extreme poverty.
In finance and crypto, the Total Amount of Glo is often referred to the "market capitalization" or "market cap" of Glo.
Total Amount of Glo = Glo reserve size
The Glo reserve is the bag of money we keep at hand to guarantee that the value of 1 Glo = 1 US Dollar. The Glo reserve will always contain $1 for every Glo token out there, so the Total Amount of Glo is equal to the size of the Glo reserve.
Whenever someone buys 1 Glo from us, they send us $1. We put that $1 in the Glo reserve, then create 1 Glo out of thin air (i.e. mint it) and send it to the buyer. The Total Amount of Glo and the Glo reserve both just grew by one.
Whenever someone redeems 1 Glo to get their US dollar back, they send us the Glo, we destroy that Glo, then take $1 out of the Glo reserve and send it to the redeemer. The Total Amount of Glo and the Glo reserve have now both shrunk by one.
The Total Amount of Glo determines how much basic income we generate
Global Income Coin generates money by investing (a part of) the Glo reserve in T-bills, earning us interest. The percentage of interest we make from the reserve is the Glo reserve rate. We give that interest away as basic income by donating it to GiveDirectly.
You can calculate the total amount of money we generate per year as:
- Basic income generated = Glo reserve size × Glo reserve rate
The reserve rate changes all of the time and is beyond our control. For simplicity we'll assume in our estimates that it is 2.5% on average, but the actual value is determined by the current interest rate on 3-month T-bills, which depends on macroeconomic factors and government policy.
With the Glo reserve rate beyond our control, the factor that we can influence is the Glo reserve size. Which, again, is equal to the Total Amount of Glo. So to lift more people out of extreme poverty, all we need to do is convince more individuals and businesses to convert more money to Glo. You can help out by joining the movement. If we come together with enough people, we can actually end extreme poverty.