How your crypto exchange can easily join the Basic Income movement right now

Do good while getting customers for free!

Here is how you get started real quick:

  1. Give a name and symbol for the Basic Income currency of your exchange, e.g. “UBI” tokens;
  2. On the backing database model of your exchange, create an additional “coin” wallet entry for each customer account: a balance of UBI tokens;
  3. Every day, increment the balance of every verified user by 1;
  4. Create a market in your exchange where the UBI token can be traded with some other token, e.g. ETH, USDT, …

That is literally all there is to getting started. You don’t have to link the balance to a specific blockchain or blockchain token — at least not yet. Your exchange makes no promises whatsoever about a “market value” for the UBI token. It offers no warranties whatsoever; it’s a free service to the world.

There are many Crypto UBI projects going on right now but none features the simple tokenomics above (“Mint +1 per person per day”) which was designed to serve a simple economic model that I call Democratic Money.

Through the above steps, you instantly join the democratic money network. You will pioneer a concept that is new within the UBI movement itself, and attract any customers that are interested in bootstrapping UBI in the world through that new strategy.

If you implement the above pattern, the next thing you can do is implement a blockchain or blockchain token contract to receive withdrawals from your exchange. That blockchain or contract will recognize the exchange’s public key as a monetary authority, and allow the exchange to mint tokens.

A maximally-decentralized Democratic Money implementation

A slightly more complex, but maximally elegant and decentralized way to implement the above token economy, is to instead create a blockchain or blockchain token contract that mints all money to verified wallets and accounts. That way, the only authority an exchange retains, with its privileged keypair, is the power to verify and unverify individual wallets and accounts. That is much safer for all parties involved.

Now, if an user wants to actually trade the UBI currency, they have to deposit it into the exchange. The exchange deals with the UBI token and blockchain or blockchain contract the exact same way it deals with any other cryptocurrency. The difference is that a verified user has an option to register an external blockchain wallet or account as their own, and that wallet will be verified (and unverified) by the exchange in the blockchain.

I will try to implement the smart contract for this using the EOSIO toolchain, so an exchange will be able to deploy it into any EOSIO-based blockchain, such as EOS, Telos, Worbli or UOS.