NFTs for future income

I’ve seen this great post by Justin on NFTs, but this is a different take. It’s not about what PoH can do for NTFART markets, but what can NFT do for UBIs.

Allow people to tokenize their future UBI by minting an NFT with the format “Date range + percentage”. This would basically mean something like: “The owner of this NFT will get 50% of my UBI in march 2022” or “This NFT enables 5% of all my 2023 income”.

This allows some very nice things like allowing some users to take on uncollateralized debt, on future UBI. If I’m in PoH and I need some money to open a business of buy a goat, I can tokenize my future income, sell it right now for cash and then pay it later.

It also allows some very cool dynamics on the PoH vouching system. Imagine the following:

  • User 0x123 creates a NFT for 1% of his income for the next 2 years. He has not been onboarded yet, so the value of that NFT is totally dependent on him actually getting accepted by the system
  • User 0x123 signs up for PoH as Bob and gives the NFT to Alice
  • Alice pays the kleros deposit for Bob and vouches for him

Now Alice has an incentive to only onboard users she believes will be accepted, because not only she put down a deposit, the value of her NFT is also dependent on that user receiving some UBI in the future. Alice does not depends on Bob on anything else, so as long as he gets in the system she is sure to receive her money back.

Bob on the other hand now got to be onboarded for free and still gets 99% if his UBI. More importantly, by onboarding new users now Bob can also get a percentage of their income (and Alice a percentage of theirs too).

Now, this might be too close for a MLM scheme–that’s true. However while there’s a multilevel factor to it that encourages people to onboard users and get more users to onboard other users, the value itself of UBI is not coming from money from the new users, so in that sense it’s very different from a pyramid scheme. New onboarded users are not risking much other than the value of future UBI tokens. And while I despise MLM schemes as anyone else, I have to admit they have a deep potency to reach many new users (if you listen to the Cryptoqueen podcast on OneCoin scam, you’ll see how that scam coin had more reach to poor people in far away lands than any ethereum ever had!)

And also, the whole MLM part is not even part of PoH, is just something that could be built by issuing future debt as NFTs.

The drawback is that it certainly would increase the complexity of the token, since now different address get UBI in different amounts for different periods of time, but maybe there are ways around this that can allow users to take on debt collateralized by future receiving.