m4gr4th34/kachow

Universal Basic Income, by utilizing blockchain technology.

kachow

Universal Basic Income, by utilizing blockchain technology.

Whitepaper Version 001

The purpose of Universal Basic Income (UBI) is that it should redistribute wealth. There is no need to cap the total amount of coins, because the USD has had no cap for 50+ years without any practical issue. It has been shown that it is possible to survive on $1 per meal. Therefore every day, every wallet will receive 1*3 = 3 Kachow Coin (KCoin), to provide a living wage, to initially drive a roughly on-parity exchange rate between KCoin and USD. The US central bank prints money on a regular basis, deflating the USD, without destabilizing the USD over the past 50 years; the issue is that the newly printed USD is typically distributed to influential institutions, thus wealth is not distributed. We propose that this ‘top heavy’ economy results in heavy, steady crashes that need sensational stimulus packages.

With Kachow wallet, the new KCoins are distributed to everyone, creating a ‘circular’ economy that should result in less predatory behavior and ideally avoid all major crashes and economic depressions. Redistribution of wealth occurs through deflating the value of the KCoins by regular printing. For example, if on day 1 a loaf of bread costs 1 KCoin, through inflation, on day 1,000 (for example) a loaf of bread will cost 10 KCoins. To compensate for this, the KCoin will be 'reflated' on a regular basis by replacing the KCoin in all wallets with a new version of KCoin (e.g. KCoin-V2). The new version of KCoin will equal the value of the previous version of KCoin, but devided by a factor of 10. Hence, 1 KCoin-V2 = 10 KCoin-V1. 1 KCoin-V3 = 10 KCoin-V2. 1 KCoin-V4 = 10 KCoin-V3. In this way the deflation-reflation cycle redistributes the wealth regularly, without leading to an accumulation of endless zeros in coinage, or the need for explicit taxation.

Demo:

1. Let us start in an unequal scenario where Person A starts with 0 KCoins, and Person B starts with 1,000,000 KCoins through massive purchase of KCoins.
2. Everyone receives 100 KCoins (Version 1) over a period of X days through UBI, so the balance on day X is: Person A (100 KCoins), Person B (1,000,100 KCoins)
3. On day X+1, KCoin undergoes an upgrade to Version 2, in order to 'reflate' the currency, by dividing KCoin Version 1 by 100. I.e. KCoin-V2 = KCoin-V1 / 100
4. The balance in the wallets at day X+1 are now: Person A (1 KCoinV2), Person B (10,001 KCoinV2)
5. Continuing the process on a regular basis, every wallet tends towards 1 KCoin over time, leading to regular wealth redistribution without runaway inflation.

From a psychological point of view, the process feels fair because everyone receives exactly the same UBI income, and no stigma is associated with UBI income. Additionally no explicit tax collection is required in order to perform the wealth redistribution.

The wallets should be attached to a biometric ID to ensure that duplicate UBI does not occur.

Kachow Coin Inc will collaborate with established crypto-mining companies. These 3rd party crypto-mining companies will mine Kachow Coin blockchain, leading to ‘decentralization’ of the Kachow Coin.

A new game for a new generation. Want to contribute? Go for it! We provide the wallet, you provide the gusto!

Further Reading:
UBI: https://www.vox.com/future-perfect/2020/2/19/21112570/universal-basic-income-ubi-map
Blockchain: https://www.investopedia.com/terms/b/blockchain.asp