Thesis: $UBI will always have different tokenomics from $BTC because of the way it’s obtained:
$BTC’s use case: speculation
People trade fiat to get BTC and then hold it. There aren’t too many places to spend it and it doesn’t really matter. Eventually, they trade the BTC back for fiat as a speculation / investment strategy.
$UBI’s use case: income
People receive UBI as a periodic income to spend on life expenses. And so, after receiving it, they trade it for Eth (and then to fiat) to pay their bills. In other words, the current system incentivizes a natural flight from UBI.
Because UBI’s use case is so different from BTC, we should not expect to see BTC-like speculation, holding, and appreciation. We need something else in the ecosystem to balance the natural flight from UBI. That something else is sources of demand.
Three ideas for creating demand for $UBI
To encourage people to hold on to their UBI and even trade Eth for UBI, there needs to be places to use it.
Idea 1: We create a fiverr.com clone which accepts UBI instead of fiat.
This would let people around the world trade their services for $UBI. In addition to creating demand for $UBI, this will enable people in faraway places to be entrepreneurial and sell services to others.
Idea 2: We work with Fiverr to support payment in $UBI
If they’re open to the idea, this would provide immediate benefits. It’d also be better to work with existing services than to compete with them.
Idea 3: We create an API for accepting payment in $UBI.
This would enable existing online storefronts could integrate in order to accept UBI for payments.
I agree but to have a cryptocurrency merchants will want to accept it needs to be stable. Payment systems can also be a problem in crypto as they can’t do chargebacks. I think the idea of working with other projects is the solution. UBI projects don’t have to compete with anyone. Most are not for profit businesses. So they occupy and area different than most cryptocurrencies or businesses.
Bitcoin MYK has an interesting offer on the table. It has a fast and free crypto with zero fees that is stable enough already to do commerce. Fast secure and free is the perfect mix for a cryptocurrency. It’s willing to work with all ubi projects at this point in time. In order to further decentralize itself. It uses charities, network suppliers, membership groups and content influencers to distribute the token.
Similar to the POR, (Proof Of Responsibility) algo which reduces waste and energy consumption by using charities to mine and distribute its cryptocurrency. keeping what they mine and distribute for themselves. These tokens can be sold as a profit to further the interest of Proof of Humanity. I think it would be a good direction forward.
From What I’ve read the YearnFinance vault is hopefully the solution for for stabilizing $UBI. But definitely agree that other partnerships would definitely be beneficial to getting the price to a stable place for commerce.
hello everyone, happy to be able to discuss this project
I agree with your proposal. I think that eventually this will stabilize the price of ubi.
However, a company must pay their suppliers / invoices in FIAT, So once a company receives a payment in ubi from a validated human, they will have to exchange it in FIAT, the problem remains the same.
So it will no longer be validated humans who sell their ubi, but companies because in addition they do not want to keep a inflasionist currency.
I think for the beginning, the establishment of the YearnFinance Vault is a good idea.
Yes as far as Yearn, i don’t think its a bad idea in the short term. However, Vitalik stated the dangers of what these products like yearn decentralized banking can create as far as unsustainable yields. I still belong to a camp of when something is too good to be true. These products are far beyond that. That doesn’t mean it can’t workout but you know what you’re dealing with.
My thought process is solving a problem and creating a solution to that problem is what creates value. So people will use the system if its useful and efficient. If it’s not then the market will answer that. So 600% - 1000% yields per month supply side beyond just pure speculation is probably not really what’s creating that value. I think community outreach and education is a good tool.
The Dai is farmed via yearns strategies (lending etc)
This earns interest on the Dai (~10%apy on Dai in yearn)
a % (i think set to 50%, but flexible) of this interest is used to buy UBI and burn it
you can withdraw your ubi and remaining interest whenever you like
e.g. you have $10, you earn $1 interest, give $0.50 to ubi and you have $10.50 left.
So it is like a savings account, where you still earn interest on your Dai, but you donate half to burning ubi at the same time. It is a really nice idea and allows people to donate whilst also saving for themselves, but at the moment our old friend gas fees make it unworkable on smaller balances.
@mykos Hi, I had a read through your other thread and this one, but i’m still a little unsure of what you are proposing, what it is you are asking proof of humanity to do? as justin mentioned, the contracts are deployed and you can use them as you like.
Sure, i’ll be more than happy to explain Issac. Yes you’re correct in that the contracts are already deployed we can use the ledger for verification etc., However, to us that’s not in an official capacity of a partnership. I’m assuming that there is a foundation or some organization that represents kleros, that’s who we really wanna make an agreement with.
Also our project runs on a dpos system. So its a different chain and we can match up POH accounts to receive our cryptocurrency they can do whatever they wish with. Go buy more ubi coin go shopping whatever. The thing is would be more helpful if Kleros announced the offer and made it more convenient for their user base to receive the cryptocurrency.
Our model works more like (POR), Proof of Responsibility. That is where chains have allowed on charitable foundations, ngo’s to mine coins and reduce energy consumption under this model. So others can not mine the coins or distribute them in that way. The other part is we want to be as decentralized as possible. We don’t wanna issue out coins to everyone directly. We want organizations and other projects to do it. In doing so they receive as many coins as gets distributed out.
So we understand we can create mechanisms to do this however if there is no official foundation for kleros then we’d ask that the community make this offer known in communication so that members are made fully aware. We will do the same no problem, however it would be that much more helpful i think to us all if they used the platform to communicate our message.
Because UBI’s use case is so different from BTC, we should not expect to see BTC-like speculation, holding, and appreciation.
You could argue for the exact opposite though. Most newly mined Bitcoins go to big mining farms who need to sell almost everything for electricity and mining equipment. UBI on the other hand is evenly distributed among a largely distributed network of individuals who do not have to dump 98% right away just to break even.
