What is UBI? Universal Basic Income in cryptocurrencies

Tiempo de lectura: 5 minutos

Somehow or other, as children who once had siblings, we faced the idea that our parents had preferences. This idea may have been fueled by the affection he had for others or because he gave him allowance, unlike us.

However, can you imagine if all of us, equally, had been given the same allowance or the same affection?

Without thinking about our age or other factors, just because we are their children.

In this scenario, things would totally change and we would have the same opportunities. In addition, we would have more peace of mind as we would be able to afford to buy our gum or receive words of support from our parents.

Universal basic income works in a more complex but conceptually similar way. 

However, let us consider that this allowance is given to any human being just for the fact of being human.

Faced with this scenario, everything is more difficult, because there is no way to verify that the people who want to participate are real. This is where the Proof of Humanity system and its basic income called UBI comes in.

Are you ready to dive a little deeper into how PoH’s universal basic income works? Let’s get to it!

What is UBI?

Universal Basic Income, or UBI, is a periodic payment program that is given to all people who can reliably demonstrate that they are human.

Specifically, it functions as a DAO (decentralized autonomous organization). That is, a management model that seeks to get rid of intermediaries and establish an organization that can function without hierarchical management.

According to the Kleros blog, UBI DAO aims to give voice and vote to its entire community and give out UBI tokens as an incentive to each registered person. To achieve this, it uses the Proof of Humanity protocol.

This system combines trust networks with inverse Turing tests and dispute resolution to create a Sybil attack-proof list of humans.

In Sybil attacks, an attacker can contaminate a distributed system by creating a large number of identities that appear to be independent and use them to gain disproportionate influence, alter routes or modify redundantly stored content.

Therefore, Proof of Humanity aims to create this public registry of verified humans so that it can be used in a variety of applications that need identity solutions (one of them is UBI).

The project was created on Ethereum and promoted by Democracy Earth (founded by Santiago Siri and Pia Mancini) and Kleros (founded by Federico Ast and Clément Lesaege). 

¿Qué es UBI? Ingreso Básico Universal con PoH

The UBI token

UBI DAO, as we mentioned, has its own token called UBI, which is the first digital universal basic income token transmitted to on-chain verified people in PoH. If the user is not confirmed within the Proof of Humanity registry, they cannot access this token.

Similarly, it is essential to clarify that its issuance occurs on the Ethereum blockchain, a network that is designed to manage and create smart contracts. For this reason, when you get UBI, it is transmitted directly to an Ethereum address.

At its creation, 10 million UBIs have been put into circulation. However, they do not circulate freely, as they have been allocated to reward different processes:

  • 20% to the first contributors of the Democracy Earth UBI Token.
  • 40% are earmarked for the initial liquidity mining program for UBI associates, which will run for one year (from March 12, 2021 to March 12, 2022).
  • 40% are for the UBI community treasury, which is intended to preserve UBI for the implementation of future UBI DAO proposals.

New UBI tokens will be issued each time a verified human claims their accumulated tokens. The amount of tokens is naturally regulated by population and time, as it is required to perform the Humanity Test in order to issue tokens.

UBI Price

Regarding its price, it depends on supply and demand. Thanks to decentralization, its fiat price will be the same for everyone, regardless of whether you were born in the Canary Islands or Tokyo.

Interestingly, there are different entrepreneurs from large companies that are betting on this project. Among them, Marcos Galperin, the founder and director of Mercado Libre.

The VOTE token, to vote

VOTE acts as an identification card, issued to each user who has validated his or her identity through the Proof of Humanity system.

In this sense, each user with a VOTE token will be able to submit for discussion the operation of the DAO or the frequency of $UBI issuance.

Therefore, you can make decisions about how cash mining is being generated or the percentage of cash for projects. This last aspect is essential, as it makes it a fully democratic DAO. 


How to receive your UBI?

I will give you a brief summary so you can understand how UBI works and how to access your universal basic income.

To do this, it is essential that you identify yourself on the Proof of Humanity platform and perform your proof of humanity, in order to have a digital identity that confirms that you are a real human. The steps are:

1- Create a profile in the Proof of Humanity application.

2- Connect your Ethereum wallet

3- Fill in your personal information

4- Upload a video of yourself on camera showing the address of your Ethereum wallet and saying: “I certify that I am a real human and that I am not already registered in this registry”.

5- Make a deposit in ETH or ask someone to do it for you (crowdfunding), which will be refunded once the humanity is verified.

From the application, the verification process includes the consensus of the other registered humans, who may present “challenges” to your profile if it does not meet the necessary conditions.

Once you pass the registration phase, you will be able to start collecting UBI hourly in your Ethereum wallet.

You can accumulate 1 UBI per hour and 720 UBI per month. Anyone can monitor the amount of UBI accumulated.

If your PoH profile that accumulates UBI expires, you can stop the process and reclaim the accumulated UBI by clicking on a button that says “leverage UBI” that will be displayed on your profile.

Likewise, anyone requesting the deletion of a profile will get their accumulated UBI.

We hope you found this brief tour useful! To be honest, in the world of cryptos we have a lot to say.

Therefore, to keep you up to date with the latest news in the cryptocurrency ecosystem, we invite you to check out our blog. There you will find all the information you are looking for and more.

Oh wait, you want to invest in Ethereum and its large ecosystem that supports projects like UBI?

Perfect, head on over to our website where we are always working to give you the best experience so you can buy Ethereum with cash, card, transfer and even other cryptocurrencies, see you next time!

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