This proposal suggests creating a decentralised autonomous organization (DAO) that would issue a Web3-based UBI token. The DAO would be governed by a board of trustees that would oversee the distribution of funds to recipients.
Under the proposed system, individuals would receive a digital wallet that would contain a UBI token, with the amount varying depending on local living costs. The tokens would be sent regularly, similar to a salary, and could be spent through a range of digital marketplaces, thereby creating a self-contained economy.
Utilising blockchain technology
The proposal acknowledges that implementing a Web3-based UBI will not be without its challenges. For example, the DAO would need to find a way to prevent fraud and abuse of the system, as well as ensure that UBI tokens are distributed fairly and to those who need them most.
It also argues that using Web3 technology would make the system more transparent, efficient and accessible to all. The use of blockchain technology would enable the tracking of UBI tokens, ensuring that they are not used for illegal activities in the ever-growing digital economy.
This Web3-based UBI would also provide a solution to the problem of individuals who are unable to access traditional banking services. By using blockchain technology, UBI tokens can be sent directly to a recipient’s digital wallet without the need for a bank account.
The institute’s proposal also outlines a three-stage implementation process, beginning with the development of a small-scale pilot programme in a region that could benefit from such a system, like the city of Hull. The second stage would involve expanding the system to cover other cities in the UK, with the final stage being the establishment of a national UBI system.
This proposed concept of a UBI has gained traction in recent years, with advocates arguing that it would provide financial security for all citizens and reduce poverty and inequality. However, critics argue that it would be expensive to implement and would discourage work, leading to lower economic output.
The Web3-based UBI system seeks to address some of the criticisms of traditional UBI systems by creating a self-contained economy that would encourage innovation and entrepreneurship, and by using blockchain technology to ensure the transparency and efficiency of the system.
Lastly, the proposal also calls for the creation of a Web3-based digital identity system to ensure that all citizens have access to the UBI system, as well as the creation of a regulatory framework to govern the use of blockchain technology.