cirlces berlin

Circles Universal Basic Income

Circles

• A new form of money where every person gets its own personal basic income (in a personal currency)

• All money is only created through basic income

• people can voluntarily connect to each other (build their Circles) and accept each others currencies within this circles

• bottom up money - positive money (debt free money)

Why a Basic Income?

• The most unbureaucratic way to establish social welfare

• Automation dividend • we should not conserve work (places) - we should get

work done • Maximize the cake vs. maximize AND make sure

everyone participates • prepare the post scarcity society

• Trickle up vs. trickle down

Why Circles?

• Implementing the basic income on the most basic level

• A fair currency(with respect tomoney creation)

• Creating value onthe (Ethereum)blockchain

Is it possible?

• Bitcoin showed that it is possible - current total value $ 6,800,000,000

What is money?

„Money can be defined as an agreement, within a community, to use something as a medium of exchange. As an agreement, money lives in the same space as other social constructs like marriage or lease agreements. These constructs are real, even if they only exist in people’s minds. The money agreement can be made formally or informally, freely or by coercion, consciously or unconsciously.“

„Our money and monetary system are, therefore, not de facto realities like air or water, but are choices, like social contracts or business agreements.“

Prof. Bernard Lietaer

Preview

Problems to solve

• Giving the currency value

• Solving the Sybil attack problem

Circles at its core (1/4)

1. Everyone can create a new account

2. An account will constantly generate an income (about 1,000.00 units per week)

3. The rate at which the income is generated will increase by g=2% per year

4. A new account starts with the income that will be generated in the next 3 months

5. One month of income is for the account owner – the other two are reserved for people who trust this account, it is called the trustee reward.


6. Accounts can trust another. This will allow both accounts holders to exchange their coins 1:1

7. Trust can be revoked by both parties.

8. If an account trusts another account it is credited with 10% of the remaining trustee reward.


9. Arbitrary groups can be created.

10. Groups can add accounts as members.

11. Groups can exclude accounts as members.

12. All members can convert their private money into group money (1:1 exchange rate). This exchange is irreversible.

Regular transactions - Transitivity

A B C

A Circles: 300 B Circles: 100

A Circles: 50 B Circles: 350 B Circles: 350

C Circles: 600

Regular transactions - Transitivity

A B C

A Circles: 300 -100 B Circles: 100

A Circles: 50 + 100 B Circles: 350 - 100 B Circles: 350 + 100

C Circles: 600

Sybil attack

A B C

Sybil 1

Sybil 2

Regular transactions - Groups

A B C

Silicon Valley Ethereum meetup group

Ethereum early adopters

Regular transactions - Groups

Palo Alto Residents

Bay Area Residents

United States Residents

World Residents

Value of Money

• Personal Money

• max(val(group1), val(group2), … groupN, val(liquid_connection1), … val(liquid_connection1))

• Group Money

• min(all members: persons and groups)

Groups

• Web of trust rules • At least connected to x% • Maximum distance = y • Mean shortest distance

• Any kind of voting mechanism • >50%, 66%, …

• Centralized with regular passport • Employee of a business • ….

The growth rate g

The growth rate g

• market cap = f(g) (and a lot of other parameters)

• maximize g*f(g)

What is Circles

• Ripple + UBI = Circles

• Money (creation) that serves the people

• The debt doesn’t need to be payed back

• Credit is not approved based on rating of banks but fixed per person

• No (forced) debt union – more resilience

• A steady growth rate of money – more stable economy

Debt is not repaid

Elinor Ostroms design principles for Common Pool Resource• Clearly defined boundaries (clear definition of the contents of the common pool

resource and effective exclusion of external un-entitled parties)

• Rules regarding the appropriation and provision of common resources that are adapted to local conditions;

• Collective-choice arrangements that allow most resource appropriators to participate in the decision-making process;

• Effective monitoring by monitors who are part of or accountable to the appropriators;

• A scale of graduated sanctions for resource appropriators who violate community rules;

• Mechanisms of conflict resolution that are cheap and of easy access;

• Self-determination of the community recognized by higher-level authorities;

• In the case of larger common-pool resources, organization in the form of multiple layers of nested enterprises, with small local CPRs at the base level.

Don’t donate - invest!

The „Berlin BGE Späti“ (UBI - shop)

Thanks

universal basic income - preparing the post scarcity economy

Contact us if you have ideas for more basic income meetups in Berlin

join us on: aboutcircles.com @aboutCircles

https://github.com/koeppelmann/circles

http://aboutcircles.com

https://github.com/koeppelmann/circles

Detailed discussion

• growth rate = demurrage fee

cirlces berlin

Economy & Finance