Utilizing cryptocurrencies as a means of providing universal basic income (UBI) distributions presents both promise and challenge. A decentralized crypto UBI system, in theory, can transcend borders and offer financial empowerment to individuals globally. Yet, the Sybil problem – the potential for users to claim multiple identities to unfairly benefit from the system – remains a significant obstacle to the fair distribution of resources. So, how can we overcome this cryptocurrency basic income problem without resorting to invasive biometric solutions?
Consider the idea of a quasi-decentralized crypto UBI. This model synthesizes the best of both centralized and decentralized solutions. Rather than relying solely on a global blockchain to authenticate users, a quasi-decentralized system could leverage existing structures like credit unions, non-profits, or benefit corporations for identity verification. These organizations already have stringent ID validation protocols that are in place or can be put in place, making them a perfect fit to mitigate Sybil problems in the crypto UBI systems.
If a privatized basic income were to be implemented in this way, a credit union could act as a guardian of a basic income unique identity verification system without managing their cryptocurrency wallet directly. Once the identity is verified, users could receive their basic income as a cryptocurrency with low transaction fees, such as Bitcoin Cash or Monero. The direct transfer ensures the privacy and autonomy of the recipient, while the credit union or benefit corporation could at the same time prevent and mitigate Sybil problems.
A sustainable economic structure and a sustainable cryptoeconomic model are vital for crypto UBI systems. An organization implementing a quasi-decentralized basic income could utilize an asset trust that would then distribute half its profits as a cryptocurrency basic income; and the remaining profits from the asset fund could then be re-invested in a diversified portfolio of assets (like ETF’s holding either or both equities or bonds). ETF’s are financial instruments that hold equities, bonds, or even precious metals (which can provide a hedge against market volatility). Such a balanced financial economic model can ensure the crypto UBI system’s longevity, sustainability, and growth.
There’s a broader implication here, too. By meshing traditional financial structures with crypto systems, the quasi-decentralized UBI model could bridge the gap between the two models. This could lead to increased trust in cryptocurrencies from mainstream audiences and elevate their role in the global financial ecosystem. Additionally, implementing a privatized and quasi-decentralized universal basic income could help to reduce significantly or eliminate poverty on Earth.
Overall, the future of crypto UBI and privatized basic incomes may be found in a balance between the old and the new. Quasi-decentralization, with its fusion of established financial institutions and cutting-edge crypto, provides a potential solution to the Sybil problem without compromising user privacy. As the digital currency space evolves, hybrid models like these could become the norm, setting the stage for a more inclusive and fair economic future. Since large governments implementing universal basic income in an effective and functional way (without problematic unintended consequences) might be decades away (if it ever happens at all), a privatized quasi-decentralized cryptocurrency universal basic income may be the most effective way of implementing basic income on a massive scale that helps hundreds of millions of humans on Earth move towards living lives of abundance and prosperity.
