Daniel Mermelstein: “Basic Income and cryptocurrency”

Daniel Mermelstein: “Basic Income and cryptocurrency”

In this article, Daniel Mermelstein delves into the relationship between basic income and cryptocurrencies. The combination of these two innovative, by some considered radical approaches to social security and money, can rock the foundations of most people’s beliefs.

Starting with cryptocurrency, Mermelstein opens with a brief history of Bitcoin, addressed how to has become more mainstream thanks to the bitcoin gordon ramsay and other celebrities have advertised or talked about, the first computer-based coin to overcome the problem of “double-spend”. This was a major step, since in the digital world it is very easy to just make copies of, say, 5€ bills. The process of making transactions with cryptocurrencies such as Bitcoin is very complex, involving “difficult cryptographic mathematics”, but in the end it boils down to a few crucial characteristics: anyone can access to bitcoins (by opening an account named “wallet” or through cryptocurrency trading portals like kryptoportal.pl), all transactions are public and verifiable (on the blockchain), it is corruption-proof (internal cryptographically linked kind of structure) and the supply of money is known and controlled. It is also independent of governments, banks, rating agencies and other institutional edifices which are often prone to corruption and secrecy.

Although Mermelstein acknowledges basic income and cryptocurrencies as foreign concepts for many people, he assures that as time goes on more people will learn about crypto, find the best crypto alerts apps, invest, and buy/sell things using it. Let us refresh our memory with the fact that the idea of basic income is already imbued in social policy programs such as Child Benefits, and that other, non-state tokens (forms of money) have already been in circulation for quite some time, without many surprises (e.g.: private “loyalty card points”, “air miles”). So, he points out that cryptocurrencies can actually help implementing basic income, since the former can be designed in such a way to deliver basic income main attributes: universality, unconditionality, individuality, money-based and periodic. As the only operational example, he cites Manna, which can be traded by other currencies (such as the US dollar) and claims a 100 000 users base at the moment. Manna features Eric Stetson as CEO, and Andrew Yang as one of the consultants.

As for challenges and the path going forward, Mermelstein lists a few hurdles still to overcome by cryptocurrencies, especially in the attempt of dispensing a basic income. One such difficulty is guaranteeing individuality, since at the moment it is very difficult to connect a ‘wallet’ (as in the Bitcoin system) to a single person. This is handy for those buying cryptocurrency australia has to offer, but not so much for basic income purposes. Another problem has to do with universal adoption, since these systems require, at least, an electricity power supply, a computer and/or a smartphone and an internet connection. This leaves out, at the moment, a large proportion of the world’s population. Also, scale can be a problem in operating cryptocurrencies, given the amount of data necessary to guarantee accuracy and tamper-free operation. If a large segment of the population uses such a system as Bitcoin to its daily expenses, there isn’t, at present, enough available computing power to guarantee a smooth operation. That only becomes a problem, though, if in fact enough people adopt a cryptocurrency as their preferred medium of exchange. Adoption, on the other hand, is always critical, since, at core, it is a trust issue. Finally, and apart from the corruption-free design of these new currency systems, there is always some core group of developers, who, especially in the case of large-scale adoption, will be targeted for scrutiny and fairness.

More information at:

Daniel Mermelstein, “Basic income and cryptocurrency“, Citizen’s Basic Income Trust, July 2nd 2019

Sara Bizarro, “Basic Income cryptocurrency Grantcoin, Upgrades and Name Change“, Basic Income News, August 4th 2017

The Horizon NGO launches the United Basic Income Platform

The Horizon NGO launches the United Basic Income Platform

Horizon Factory is a “platform through which organizations can set up an independent basic income project, supporting their own community while contributing to Horizon’s global basic income service”. Aiming high at a world-wide basic income, naming this as the United Basic Income Platform, Horizon’s goal is to link up all the world’s basic income initiatives, thus effectively creating a global basic income network. Horizon defines itself, as “the first decentralized platform for uniting universal basic income initiatives.”

Built upon the Ethereum blockchain, the general idea is to distribute crypto tokens, so that everyone can build “a basic income for him or herself”, especially as buying cryptocurrencies is fairly easy and people have the ability to buy things like Bitcoin and Ethereum using basic means. This includes being able to buy crypto with credit card, making it a very simple process. The platform’s role is to collect money from donations and partnerships and redistribute it within the blockchain network. The final aim is aligned with that of many basic income supporters, which is to provide people with more effective freedom, the possibility of a more meaningful and less stressful life. Thus, if consumers can go ahead and learn more about how digital currencies can be bought with credit cards (similar to how Coin Cloud and the like work), it would be easier for many to invest in various cryptocurrencies. Before cryptocurrency enthusiasts decide to do this, however, there comes a need to know more about the domain and its potential upticks and pitfalls.

The currency chosen to distribute these tokens is the Ethereum (ETH), which saves Horizon time, money and effort to launch its own crypto currency, plus benefiting from the ETH already established value (at the moment 1 ETH ~ 500 US$). Moreover, because the Horizon’s platform is also programmed on the Ethereum blockchain, it also takes advantage of the community already invested in this system, and the fact the supporting software is continuously being reviewed and updated by experts. According to Horizon’s whitepaper, “to build a decentralized basic income service, there is no need to reinvent the wheel”. Hence, Horizon’s role is to “write smart contracts for its basic income service”. For this, cutting edge programming technology is used, such as MiniMe tokens, ERC20 standard, Truffle framework, ESLINT and Solium. The Horizon platform can be used, however, for purposes other than distributing a basic income.

To pay out basic income at each node, Horizon uses the Splitter – a function used to “divide the collected deposits among all token holders” – which will record the tokens in possession, the periods in which the distribution is to be made, and how many Ethers shall be paid for each token. Each Splitter owner, including the Horizon Factory, has its token reserve which is used to pay its token holders, and is the sole controller of that Splitter. The Factory Splitter is not privileged in any way, being just another split node following the same rules. However, a 1% fee is charged on deposits to Splitters (for the Factory Splitter), to cover for operating expenses. Technically, the platform also allows for transaction fees to be fed in the basic income distribution scheme (similar to a Tobin tax), although that is still dependent on Horizon’s partnerships.

The Horizon NGO has been setup and is managed by Dirk von Heinrischshorst and Eliott Teissonniere, both experts in electronics, information technology and computer science. As leaders of the Horizon project, they both share a vision of open source systems, Decentralized Autonomous Organizations (DAO) and of an economy which works for the common good.

More information at:

Horizon’s website

Horizon NGO executive summary

Horizon whitepaper

Dom Galeonand Abby Norman, “Universal Basic Income Could Become a Reality Thanks to this Technology”

Dom Galeonand Abby Norman, “Universal Basic Income Could Become a Reality Thanks to this Technology”

In the last few years, cryptocurrencies have been proliferating with people searching for the best crypto to invest in as well as how they can add to their portfolio. Some have even been created specifically for Basic Income.

According to Dom Galeon and Abby Norman, who are the authors of an article called Universal Basic Income Could Become a Reality Thanks to this Technology in the emagazine Futurism, cryptocurrencies are mined from a decentralized system of ledgers and transactions known as blockchain. In a blockchain, transactions from various sources get recorded and are kept by a network of specialized computers. Usually, these blockchain keepers are “compensated” for their efforts in maintaining a block with cryptocurrency. This process is called mining. For every digital transaction recorded and stored, a miner is paid in Bitcoin, Ether, or Zcash, depending on which blockchain they are using. Wondering where Bitcoin can be spent? Visit https://coinsspent.com/ to find out.

Grantcoin is a nonprofit based in the US that re-distributes funds worldwide. In their mission statement they express the belief that their system is for the people, not for corporate or government gain.

Cicadia is an open-source distributed application cryptocurrency created by Daniel Jeffries. His system makes it possible for recipients to use their phones to receive funds, bypassing the need for any government intervention.

The authors also state that there are additional cryptocurrency-based UBI programs like uCoin and Swarm, as well as Circles, which uses Ethereum. There are also UBI-like programs by Kiwicoin in New Zealand, Cubecoin, Strangecoin, the Worldwide Globals Organization, and the Basic Income Project, LLC.

GERMANY: “Basic Income Café” provides center for UBI-related activities in Berlin

GERMANY: “Basic Income Café” provides center for UBI-related activities in Berlin

Café Grundeinkommen, a tiny coffee shop in Berlin, Germany, doubles as a center for meetings and discussion of basic income. The café is now preparing to release a prototype of Circles, a cryptocurrency designed by one of its founders as a means to implement basic income.

Cafe Grundeinkommen

Members of Berlin Basic Income first discussed plans for a basic income café in June 2016, inspired by Swiss People’s Initiative. The hub of the Swiss campaign–which culminated that month in a highly publicized vote on a national referendum on basic income–was a café in Basel, unternehmen mitte, cofounded and managed by basic income advocate Daniel Häni.

A year later, in June 2017, Café Grundeinkommen opened as part of the Tinyhouse university project, an art exhibition at the Bauhaus Archive Museum in Berlin.

The café contains a small library for its guests–consisting of one shelf and a coffee table stocked with books on basic income, alternative economics, and cryptocurrency–and provides meeting place for small groups (including the weekly meetings of a local branch of Bündnis Grundeinkommen, a basic income political party competing in Germany’s federal elections in September). Due to its diminutive size, Café Grundeinkommen cannot house meetings of more than ten people. However, its team holds larger events at nearby buildings–such as a recent public presentation on Basic Income on the Blockchain held at the Bauhaus Pavilion.

Vegan baked goods

Currently open five afternoons per week, Café Grundeinkommen serves direct-trade coffee from the Berlin-based roastery Populus, meeting its commitment to using only “local, ethical, and sustainable” coffee.

Understandably, going to a restaurant/café for a cup of coffee may not be the best option for some people. Just as soon as they hear “you can buy coffee in wholesale” those people may become transfixed, and a spark might appear on their faces. Several companies, including Iron & Fire, deliver high-quality roasted coffee beans and even ground coffee beans right to your door. If interested, you can learn more about their services by visiting their website.

Anyway, in addition to coffee, the café offers one or two kinds of baked goods each day, usually vegan muffins or cookies.

Soon, guests of Café Grundeinkommen will be able to purchase coffee and snacks using a prototype version of Circles–a cryptocurrency designed by one café’s founders, Martin Köppelmann, as a possible mechanism for implementing universal basic income.

Discussing Circles

In the proposed monetary system, first put forth by Köppelmann at Berlin Basic Income’s inaugural meeting in December 2015, all individuals have their own currencies, in which their basic income grants would be paid. To engage in market exchanges, they must create “trust connections” with others with whom they are willing to trade currency. Exchanges can occur between–and only between–individuals who trust one another’s currencies. This type of trade exchange is interesting, especially for those who are interested in learning more about stock and currency trades and investments. Most may find a forex trading course interesting to take if they wish to further their experience within the investment market.

Köppelmann believes that such a digital currency provides the best medium for the distribution of a universal basic income. In his explainer “Introducing Circles,” he writes, “A world wide basic income is something so powerful that no single entity in the world should have control over it in order to preclude manipulation. Particularly, there should be no central authority that decides which person can get a basic income and which person cannot.”

Holy Foods House and Cafe Grundeinkommen

Café Grundeinkommen is currently nearing the launch of an app to put Circles to its first “real world” test. Users of the app will receive monthly credits (their “basic income”), which they will be able to use to “buy” products at the café, in addition to food from HolyFoods House (a food-sharing house neighboring the café), usage hours at the co-working space The New Work Studio, and tickets to events at the Bauhaus Campus.

Café Grundeinkommen’s Ronit Kory told Basic Income News, “We want to see how people will use it on their own, encouraging them to use the app to offer their own goods and services, including ones that might not be considered conventionally valuable in a capitalist system.”

It should be noted that the release of the prototype version of Circles is not a trial of basic income, merely a trial of a type of currency that Köppelmann proposes as a means by which a UBI might be distributed.

In addition to launching the Circles app, Café Grundeinkommen is planning monthly meetings featuring various speakers on subjects related to basic income, which it will announce on its Facebook and MeetUp pages.


Reviewed by Russell Ingram.

Photos used by permission from Cafe Grundeinkommen – Berlin’s Basic Income Cafe. Cover photo: Ronit Kory stands outside Café Grundeinkommen during its construction.

Basic Income cryptocurrency Grantcoin, Upgrades and Name Change

Basic Income cryptocurrency Grantcoin, Upgrades and Name Change

When cryptocurrency was just getting started, it was really easy to mine cryptocurrencies using just your computer’s processor. But as the competition became more intense, cryptocurrency mining shifted to Graphic Cards or GPUs, since they were more efficient and faster to mine than CPUs. As competition grows and verifying blocks has become increasingly difficult, mining with dedicated machines (like a specific crypto mining rig for sale) is becoming more prevalent.

One would be shocked to hear that most people weren’t even aware of what cryptocurrencies were, or that they could be bought off many sites like Independent Reserve, at the start of the year, but now thanks to the explosion of Bitcoin, pretty much everyone is talking about it. More investors than ever before are using wallets like oxis to buy, sell, and lend cryptocurrencies and they are forecasted to before even more popular in years to come. But what does this all mean for Basic Income?

Well, Grantcoin, the first cryptocurrency to distribute a Basic Income type of grant to 2500 people, just announced Grantcoin 2.0 and a name change.

The currency will now be called Manna. The not-for profit has new technology goals and a crowdfunding campaign coming up soon.

There are a few important announcements regarding the program. Those who currently receive the Basic Income grants will be able to exchange their Grantcoin for Manna at a 1:1 rate for a period of time. Grantcoin is also about to conduct a major fundraiser for the launch of Manna; the dates will be announced soon. Another important change is the implementation of smart contracts, which greatly improves security. The founders will also be donating the majority of their holdings for the crowdfunding campaign.

Also related, on August 13, founder Eric will give a one-hour presentation entitled “Cryptocurrency Is Our Future” at the New World Consciousness Conference and Expo in Orlando. On Monday, August 14, 10:00 a.m. to 12:00 p.m., Eric Stetson and Brandon Venetta will host a “Meet the Founders” gathering at the Dr. Phillips YMCA, 7000 Dr. Phillips Blvd, Orlando, FL 32819. Everyone can attend, even if not going to the conference, just RSVP to brandon@grantcoin.org.

Keep an eye on the Grantcoin website for further announcements.

For background information on Grantcoin, see:

Nick Yeretsian, “Grantcoin Distributed to 750 People in 69 Countries,” Basic Income News, October 29, 2016.
Kate McFarland, “Grantcoin Foundation distributes first digital currency basic income grants,” Basic Income News, July 10, 2016.