Circles Protocol, recently introduced on the xDai Ethereum sidechain, provides a basic income to each of its users in the form of a cryptocurrency called “Circles.”
After 7 years of dreaming about it, discussing it, dismissing it, adjusting it and finally implementing it, @CirclesUBI – "universal basic income on the blockchain" – or just "better money" went live today!
— Martin Köppelmann (@koeppelmann) October 16, 2020
Potentially, as more people access the network, the worth of a Circle, which is currently unknown, rises. Circles purports itself to be the “universal basic income of crypto.”
Universal Basic Income in the COVID Era
Universal Basic Income (UBI), also referred to as Basic Income, is a proposed national government scheme providing periodic payment to all residents of a given population without a prerequisite providing means of examination or work.
It is possible to introduce basic revenues globally, regionally, or geographically.
An unconditional income adequate to satisfy the basic needs of an individual (i.e., at or above the poverty line) is often referred to as a full basic income; whether it is smaller than that level, it can be referred to as a partial basic income.
Transfers made on the basis of basic income are equal or equivalent to those generated on the basis of negative income tax.
With former US presidential candidate Andrew Yang repopularizing UBI among the general populace and the advent of coronavirus, universal basic income has become a hot topic in recent times.
The Circles Protocol
Every week, the Circles protocol issues the $CIRCLES token to all of its users. Users get 100 circles upon signing up.
Afterward users will receive about 14 circles per week; the value could inflate each year by 7 percent.
Anyone can create an account, but according to the Circles FAQ, users need “3 incoming trust connections” to validate it. This suggests that users must be welcomed to the platform by three trusted users.
Users who “trust” each otehr can earn coins from their friends and vice versa.
Circles suggests that you should only “trust” users that you know in real life.
Knowing the crypto community, this might be a tall order as much of the community exists online. Indeed, many users have shared their profiles publicly on Twitter.
