Crypto-Based Universal Basi Income (UBI)

Hello everyone, How are you doing, I welcome you again to my blog in the Steem Alliance community.

Today, we will discuss an interesting topic on the platform which will be: Crypto-Based Universal Basi Income (UBI)

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Crypto-Based Universal Basi Income (UBI)

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• An Introduction

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Universal Basic Income (UBI) is another financial opportunity or can also be referred to as an idea where all users/citizens get a standard amount of money from the government or any personnel, some countries have a specific name for this actually, maybe a grant or something.

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Well, with the introduction of decentralized platforms and digital forms of money which we all call cryptocurrency, executing the UBI project through crypto has turned into a reasonable option, we will be able to discuss how this UBI can be carried out through a decentralized platform, and also look at some case studies of crypto UBI projects, and talk about the financial implications and difficulties of such system.

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Executing UBI Through Decentralized Platforms

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We all already know that decentralized platforms are the one that influences blockchain innovation possible and are able to make it a transparent, secure, and automated system, Executing UBI through these platforms normally involves the following steps:

1 . Token Creation: First of all, a particular cryptocurrency has to be created and made specifically for the UBI program.

2 . Wallet Distribution: Of course there is going to be a wallet distribution for each individual in their specific crypto wallet address.

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3 . Automated Payments: For this case, they make use of smart contracts to distribute the payment to every wallet, ensuring that there is transparency in the system which is mostly important.

4 . Funding: There has to be a finance for this, so therefore the project can be financed through different means, for example, blockchain rewards, donations, or the issuance of new tokens.

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A Case Study of a Crypto UBI Project

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GoodDollar

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Introduction: GoodDollar is a crypto UBI project that aims to provide important revenue to individuals around the world, provided they meet the specific threshold.

• Implementation: For the GoodDolar project, users get day-to-day circulations of the G$ tokens, which can be claimed through the GoodDollar application, and this is done with ease to several users.

• The Funding: The project funding is financed through yield farming on decentralized finance (DeFi) systems.

• Impact: GoodDollar has circulated a large number of G$ tokens to a large number of users, turning out to be a constant revenue to many out of there who were lucky to be part of it.

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Economic Issues and Challenges of UBI

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Economic Issues:

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1 . Financial Acces: It's a no-brainer that Crypto UBI can help to give financial access to urban regionals, reducing poverty in most countries and growing financial access globally.

2 . Local Economies: By financing money directly into the control of the people who need it, even local economies can grow as individuals will have more money to spend for themselves and provide service to others.

3 . Innovation: Crypto UBI projects produce development in decentralized finances and government, promoting more productive and straightforward financial systems.

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Challenges

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1 . Volatility: Cryptocurrencies are mostly known for high price unpredictability where anything can just happen at random, and this can influence the dependability of UBI payments because no one likes to lose money even if they are getting it for free.

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2 . Regulation: The legal status of cryptocurrencies changes country by country, and this brings governmental issues for huge adoption sometimes, even a country such as Nigeria is suffering from this syndrome.

3 . Security: Giving 100% assurance of the security of assets can also be a primary concern for most crypto UBI projects.

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Conclusion

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Crypto-based UBI presents a promising financial option in comparison to traditional UBI models by using blockchain innovation to give a direct, secure, and efficient pay system.

We have seen projects like GoodDollar, and Circles UBI, showing the capability of this method, regardless, there are some major challenges like price unpredictability, proper guidelines, and security which could be an issue for its global acceptance.

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^{' NB: This post concerns education, not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your research and consult a financial advisor}

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