This proposal outlines a reserve currency protocol which would be pegged to the Consumer Price Index via on-chain oracles. The DAO will be open-source and a non-profit organization. The DAO will use its treasury to earn yield in various defi protocols by providing liquidity, staking (ve) tokens, yield farming in multiple chains via multi-sig wallets. The income from those investments would be distributed between the token holders and ubi recipients. A mobile app would be developed which would tie the human to the UBI wallet via Atala Prism. The token holders will be able to vote on investments as well as earn bonuses for sharing yield strategies with the protocol.
The tokenomics will be similar to OlympusDAO on Ethereum, and it is an inspiration for this protocol. The rebase rate of the currency will be pegged to cpi data from on-chain oracles like Wolfram Alpha and Chainlink. This would be updated once a month and the token holders vote on the data source. This creates a reserve currency which is looking to counter inflation while also providing those a potential source of supplemental income.
The mobile app will implement Atala Prism for identity, and by partnering with payment solutions like ADAPay be able to execute one tap payment directly from the mobile app to the supporting grocery stores. The payment to the UBI wallet would be periodic and would expire if unused, this creates an incentive to spend which is the entire purpose of the protocol.
As the treasury grows over time, the procotcol can provide more and more consistent basic income to all participants. We would look to tie up with communities and governments in Africa where Cardano is very active at first. With other projects like WMT looking to bridge the internet divide this could create a perfect storm of opportunity for a decentralized, transparent and open-source protocol to attempt to provide universal basic income using the Cardano blockchain.
The following are the metrics from the challenge page, and also how the proposal aims to help meet them for Catalyst
1. The sum of realized production pilots or launches in 2022 : The DAO will launch in 2022
2. Discovery of repeatable patterns in use-cases : One-touch payments with Atala prism could unlock many retail and B2C interaction patterns
3. The number of issuers, holders, and verifiers : The mobile app will be free to download and try and would look to pay out periodically, this should see a huge adoption with correct marketing and outreach programs.
4. The number of verifications performed on credentials in production : There would be multiple retail transactions per month requiring authentication to pay for goods and services at stores.
1. Crypto is inherently volatile, and this adds risk of token value fluctuating and leading to a bad user experience. This could be mitigated partially by adding a stablecoin to the ecosystem in the future.
2. Legal / Tax hurdles for users accepting basic income based on local / country regulations
3. Treasury not being large enough to pay any significant amount of basic income to a large number of holders due to not enough interest in a cpi-pegged reserve currency