Welcome to this post on UBI (Universal Basic Income) in action. We will explore the concept of UBI and its significance in the world today. We’ll also delve into the use of blockchain and cryptocurrency in implementing UBI. Join us as we explore the work of Good Dollar and Impact Market, two organizations that are making a difference through UBI. Let’s get started!
UBI is a response to various challenges, such as poverty, inequality, hyperinflation, and limited access to financial services. Many individuals and communities face barriers that prevent them from accessing opportunities or building a better future for themselves and their children. UBI aims to provide a safety net by unconditionally providing a basic income to meet people’s essential needs and empower them to improve their lives.
UBI also serves as a means to democratize money and decentralize investments. Currently, the banking system decides where investments are made, often neglecting crucial areas like affordable housing and renewable energy. With UBI, individuals have more control over how money is spent, fostering trust and empowering communities to make economic decisions that benefit their collective well-being.
Blockchain and cryptocurrency play a vital role in enabling UBI on a global scale. Approximately 2 billion people lack access to banking services, while many others are underbanked. Additionally, some countries suffer from unstable currencies and hyperinflation, restricting people’s purchasing power and economic freedom. Blockchain technology offers a decentralized solution, ensuring that UBI reaches those who need it most, regardless of their geographical location or access to traditional financial systems.
Blockchain’s transparency and security make it an ideal technology for implementing UBI. It allows for innovation and prevents individuals from getting locked into a system controlled by centralized authorities. By leveraging blockchain and crypto, UBI initiatives can bypass financial barriers, ensure reliable transactions, and foster trust among participants.
Good Dollar is an organization working towards implementing UBI through its reserve-backed cryptocurrency, Good Dollar. The project aims to transform the way money functions, shifting from an anarcho-capitalist approach to a Georgist perspective that benefits the collective. Good Dollar allows individuals to participate in giving campaigns and experience the joy of contributing to the well-being of others. The project is gaining momentum, with people in various countries already benefiting from the circulation and usage of Good Dollar.
Impact Market focuses on providing Unconditional Basic Income (UBI) to vulnerable communities. By using a currency that people already understand and use, Impact Market prioritizes reaching individuals in developing countries who can benefit the most from UBI. Through their platform, individuals can make donations and earn governance tokens, creating a market value that helps combat extreme poverty and encourages adoption of crypto. Impact Market also emphasizes the importance of identity verification and social consensus mechanisms to ensure UBI reaches those who genuinely need it.
Implementing UBI and leveraging blockchain technology come with their own set of challenges. Some of the key barriers include:
- Acceptance and Adoption: Encouraging businesses and individuals to accept UBI as a valid form of payment.
- Access to Defi: Attracting more interest and investment in decentralized finance (DeFi) protocols to support UBI initiatives.
- Identity Verification: Developing secure and decentralized identity systems to ensure UBI is distributed to the right individuals and communities.
- Social Consensus: Establishing community-driven governance models that prioritize those most in need and maintain the integrity of UBI programs.
GoodDollar is an open-source project that aims to reduce wealth inequality globally through UBI and blockchain technology. Here’s how GoodDollar works:
- Reserve-backed cryptocurrency: GoodDollar issues a reserve-backed cryptocurrency, also called GoodDollar, which represents the value of the assets held in reserve. This cryptocurrency is distributed to eligible recipients as UBI.
- Funding the reserve: The reserve that backs GoodDollar is funded through various sources, including voluntary contributions and interest generated by the reserve itself. By participating in giving campaigns and donating assets to the reserve, individuals and organizations can contribute to the UBI distribution.
- UBI distribution: GoodDollar’s UBI distribution is based on a daily issuance mechanism. Every day, eligible individuals receive a certain amount of GoodDollar tokens directly into their digital wallets. The amount is calculated based on factors such as the reserve size and the number of eligible recipients.
- Economic empowerment: By receiving UBI in the form of GoodDollar tokens, individuals gain economic power and can use these tokens to purchase goods and services from participating merchants or transfer them to others.
GoodDollar has successfully implemented pilot programs in various countries, demonstrating the potential of UBI in reducing poverty and promoting economic empowerment.
Impact Market is another organization that focuses on implementing UBI through blockchain technology. Here’s an overview of how Impact Market operates:
- Digital currency: Impact Market utilizes a digital currency that is already widely accepted and understood within the targeted communities. By leveraging a familiar currency, the adoption and usability of UBI are enhanced.
- Donations and governance tokens: Users can donate funds to Impact Market, which are then used to provide UBI to vulnerable communities. In return for their donations, users receive governance tokens that represent their stake in the Impact Market ecosystem.
- Value creation and market dynamics: Impact Market generates value within its ecosystem by facilitating transactions and creating opportunities for economic exchange. This value creation helps sustain and expand the UBI program.
- Identity verification and social consensus: Impact Market emphasizes the importance of accurate identity verification and social consensus mechanisms. This ensures that UBI reaches the intended recipients and that decisions regarding the distribution of funds are made collectively and transparently.
Impact Market aims to provide UBI to communities in developing countries, empowering individuals and fostering economic growth.
UBI, supported by blockchain technology and cryptocurrency, has the potential to address poverty, inequality, and financial exclusion on a global scale. Initiatives like Good Dollar and Impact Market are pioneering the implementation of UBI in practical ways, empowering individuals and communities to improve their lives and participate in economic activities. By leveraging blockchain’s transparency, security, and decentralization, UBI can reach those who need it most and create a more inclusive and equitable financial system.