These 5 disruptive initiatives pay a monthly basic income — in cryptocurrency
Revolutionizing global philanthropy, one blockchain app at a time
Just imagine that every month, you receive a fixed amount of income that covers your housing, food and other essentials. You would be able to fully focus on your study, your start-up or your art for example.
Universal Basic Income (UBI) is not new; pilot programs around the world have given people an unconditional monthly income.
But what happens when UBI meets crypto? That is new. Paying out a basic income in cryptocurrencies has the potential to transform UBI into a fast, secure, decentralized and accessible social policy.
The link between UBI and crypto is there: both movements want to cut out unnecessary middlemen to increase access to finance. And both hold transparency and efficiency as important values.
In the past few years, blockchain-based UBI projects have been on the rise. A few of those fizzled out. Here are the ones that exist in 2021.
1. GiveDirectly
GiveDirectly is the world’s largest philanthropic organization that provides direct cash transfers to the poor. Using mobile phones to reach cash recipients, they run cash transfer projects in 7 African countries plus a Covid-19 response program in the USA.
GiveDirectly is also the longest and largest study on the effects of UBI. Their research has strengthened the evidence that poor people use a basic income wisely — as only they know what’s best for them.
In a May 14 Coindesk article on crypto-philanthropy, the Managing Director of GiveDirectly said he believes that the development aid community can learn from cryptocurrencies’ decentralization and transparency.
The article also mentions that with donations from the likes of Elon Musk, Vitalik Buterin and Jack Dorsey, already 25 million USD in cryptocurrencies has been sent through GiveDirectly to basic income recipients.
Although that constitutes only 6.25% of its total aid of 400 million USD, GiveDirectly is clearly taking steps to explore the opportunities that crypto brings to philanthropy. Also, 25 million USD still dwarfs the amount of crypto handed out by the initiatives I will discuss next.
2. Circles
Circles was founded in Berlin. The project aspires to give people a UBI and empower communities to build their own local economies. In times of low trust in government currencies, people can use the Circles coin in the local community they trust.
You can use the Circles coin to trade goods and services with others on Circles marketplaces that can start anywhere in the world. The initiative has grown to 200k users worldwide. Want to know how the project is going now? Follow Circles UBI Project.
3. GoodDollar
GoodDollar aims to improve financial inclusion by giving people easy access to a cryptocurrency basic income. It has already launched its own crypto coin called ‘G$’. How does it work?
‘Supporters’ stake some crypto money (such as Bitcoin or Ether) into a fund. That fund is the principle amount that generates interest, which can be collected by ‘claimers’ (people who want to receive UBI). Claimers can claim their basic income in the form of G$ — every day.
What makes GoodDollar different from other initiatives is that you don’t actually donate money. Instead, you ‘stake’ or invest it, meaning you can take your money back whenever you want.
GoodDollar is growing at a rapid pace. It already has 211k+ members contributing to its fund. G$ can also be spent at the GoodDollar Marketplace. If you join GoodDollar via my referral link you receive 50G$ to start with.
What is very smart about GoodDollar is that the UBI it pays out is not funded by the principal, but the interest. Where other crypto UBI initiatives quickly run out of money, GoodDollar does not spend the principal, which means its fund keeps growing.
4. Myubi
Myubi is an Australian-born global service designed to give people monthly micropayments during 20 years. It aims to help lift The Bottom Billion (the poorest 1 billion persons on earth) out of poverty.
The Myubi Foundation hosts a supply of 100 billion of its own cryptocurrency called MYU, which operates on the Ethereum blockchain and is already tradeable. According to its website, Myubi’s purpose is
‘‘to provide long-term income security for the world’s poor and vulnerable, eliminate poverty, and reduce income inequality’’
The Myubi basic income is there to improve people’s access to finance, healthcare and education. Many people in developing countries are unbanked, and often the physical infrastructure needed for banks is lacking.
The Myubi Foundation hopes that in the future, the transparency of cryptocurrencies such as Myubi could even reduce corruption. That is because on a public blockchain, transactions are easy to trace. Government officials will not get away with bribes so easily anymore.
5. Crypto Basic Income
Launched in 2021, Crypto Basic Income (CBI) aims to give people a dignified life by providing a monthly basic income. It is run by volunteers and funded with donations.
Paid out to recipients in Bitcoin or Ethereum, this basic income is worth 1000 US dollars per month for a full year. In many countries, that should be enough to rent a decent apartment and buy groceries.
CBI is raffled every time 12000 USD is collected from the donations. Crypto Basic Income has already helped fund people’s dreams and support their lives.
For example, one CBI raffle winner was able to complete his master’s thesis without feeling the pressure to work. On CBI’s website, other winners report the basic income enabled them to focus on their passions.
What do people want to spend their Crypto Basic Income on? According to testimonials on the website, a cook who lost his job during the pandemic says he wants to go back to school and pursue a degree in healthcare. Another person wants to use the money to help their parents.
Someone from Germany reports they want to use the Crypto Basic income to supplement their pension. A participant from the USA wants to use the money creatively to improve their programming skills and release a music album.
What would you do if you received a (crypto) UBI?
Follow me, share and clap if you liked this blog. Soon I’ll post more blogs about the potential UBI has to transform everything from social policy to development aid.
Sebastian Maria is a political scientist, historian and traveler from the Netherlands. He writes on the root causes of armed conflicts, but also on more hopeful things such as the Universal Basic Income.
Disclaimer: this blog contains two affiliate links: GoodDollar and Bottom Billion. I may earn a small comission when you click on those links and sign up or make a purchase. This happens at no cost to you.
