Appendix

## Mathematical Equations

### Equation 1: Reserve Ratio Equation

Let:
$P$
- the price of one 1G$in Supported Currency; $R$ - the amount of Supported Currency in the reserve; $S$ - total G$ coins in circulation.
Then
$r$
- the reserve ratio - is defined as:
$r=\frac{R}{P \cdot S}$
At launch,
$r=1$
and overtime, will computationally decline at a daily rate in accordance with the Expansion Rate. In Equation 1, given
$R$
and
$r$
the system has two degrees of freedom,
$P$
and
$S$
that will be calculated as described below.

### Equation 2: Buy/Sell Function & Current Price(Bancor Formula for Automated Market Making)

Current Price function:

### ​$Current Price = \frac{Reserve~Balance}{Smart~Token's~Total~Supply~ \cdot ~Reserve~Ratio}$

$Tokens~Issued = Supply \cdot ((1+\frac{Connected ~Tokens~Paid}{Balance}) ^ {CW} -1)$
Sell function:
$Connected~Tokens~Paid~Out = Balance \cdot (\sqrt[CW]{(1+\frac{Tokens~Destroyed}{Supply})} -1)$

### Equation 3: Expansion Rate Formula

$q=\frac{r_t}{r_{t-1}}$

### Equation 4: Mint G$from Declining Reserve Ratio - Once a day the reserve ratio is reduced while all other parameters are unchanged. The GoodReserve contract mints an amount of G$ to satisfy Equation 1
$P=\frac{R}{r \cdot S}$
. If P and R do not change and the daily change in r=𝚫r and the corresponding change in S is 𝚫S, then
$r s=(r+\Delta r)(S+\Delta S)$
and from here we can see that:
$\Delta S=S \cdot \frac{-\Delta r}{r+\Delta r}=S \cdot \frac{r_{t-1}-r_{t}}{r_{t}}$
From Equation 2 we get
$q=\frac{r_t}{r_{t-1}}$
and thus:
$S \frac{r_{t-1}-r_{t}}{r_{t}}=S \frac{1-q}{q}$

### Equation 5: Mint G$from Deposit Formula - The number of new tokens based on the daily interest deposited in the Reserve. Z - Value deposited into the reserve E - Newly minted tokens The formula does not change the price or reserve ratio: $E = \frac {\frac{R + Z}{Rr} - P \cdot S}{P}$ ## Monetary Example This is an illustrative example, with simple rounded numbers, aimed at trackability: • 10 Supporters have staked a total value of US$10 million in supported crypto to a third-party protocol
• Protocol annual interest rate of 10%
• Daily interest of US$2,736 • G$ Price = US $1 • GoodReserve = US$1,000,000
• Supply of G$= 1,250,000 • G$ Market Capitalization = US$1,250,000 • G$ Reserve Ratio = 80%
• Daily Expansion Rate = 1%
Every day G$minting occurs from two methods: From the deposit of interest to the GoodReserve and from the decline in reserve ratio. 1. 1. Minting derived from deposite of daily interest to the GoodReserve 1. 1. Deposit of US$2,736 to GoodReserve
2. 2.
Calculated as follows:
1. 1.
$S \cdot P=\frac{R}{Rr}$
2. 2.
(1,250,000 +X)*1=(1,000,000 + 2736)/0.8
3. 3.
1,250,000 + X = 1,002,736/0.8
4. 4.
1,250,000 + X = 1,253,420
5. 5.
X = 3,420
3. 3.
3,420 G$are minted 4. 4. 2,736 G$ are allocated back to the 10 supporters
5. 5.
684 G$are distributed as basic income 2. 2. Mint from Reserve Ratio Decline 1. 1. Lower the Reserve Ratio from 80% to 79% 2. 2. Calculated as follows: 1. 1. $S \cdot P=\frac{R}{Rr}$ 2. 2. (1,253,420+X)*1= 1,002,736/0.79 3. 3. 1,253,420 + X = 1,269,286 4. 4. X = 15,866 3. 3. 15,866 G$ are distributed as UBI
In total, on that day 16,550 G\$ were distributed as basic income to Claimers.