Incentive-Based Decentralized Safety Nets
*Basicincome.co is an application built on top of the RESILIENCE protocol. the RESILIENCE protocol enables voluntary taxation in the p2p-paradigm, and is a framework for social service applications such as Basicincome.co. I wrote a concise introduction on http://www.resilience.me/faq.html
You can connect Ripple, Bitcoin, Ethereum, or any other financial platform. Basicincome.co only has one requirement - it needs access to their ledger, and most next-gen financial platforms have an API for that.
Personalized Safety Nets
“In my Basic Income #DApp, your safety net emerges from the sum of your financial interactions, allowing you to live and evolve as a global and mobile citizen. Basicincome.co transforms the stage upon which we unfold.”
Attraction by incentive rather than coercive force (incentive-centered design protocol)
Basicincome.co uses an incentive-structure that was originally designed by Johan Nygren. To get some perspective, think about how incentive centered design has transformed many aspects in our lives in the recent years. Think about crowdfunding. Crowdfunding has provided an alternative to taxation-based funding, and with a radically different incentive-design. Incentives without punishment, positive reinforcement. This is amazing, and it shows just how powerful incentive-structures can be. A well designed incentive-structure can unleash untapped potential of the crowd.
The incentive layer designed by Johan Nygren is simple, yet powerful: if a person or corporation consumes from someone outside the network, they get disconnected. Only temporarily. If they buy for $100 from someone outside the network, they get disconnected for the duration it takes for $100 in dividends to flow through them.
This is very meta and recursive because if a node gets disconnected, all their consumers also get disconnected, and so on. Which means that staying connected will make a node extremely attractive to others who want to stay connected.
This incentive mechanism was described brilliantly in the Coinssource.com article,
“This means that consumers who want to receive basicincome will benefit greatly from seeking out corporations that are connected to basicincome.co. Therefore, corporations are incited to join the network in their effort to gain and keep costumers. Not only will this mean that consumers can create a resilient financial safety net through making active consumerist choices. The corporations will also be encouraged to take greater financial responsibility for their entire supply line.”
So the idea is: Imagine you own a company, and imagine you choose to join Basicincome.co to support your network. The fact that you, and your supply chain, offer social security that is superior to what the state provides will not only make you a better person but will also make you more attractive to potential costumers. It´s a simple, yet powerful incentive structure.
Here´s a video by Johan that should give you a feeling of it,
*this incentive -structure also enables Decentralized TaxRate Governance, and Basicincome.co supports that function
Decentralizing the Worlds Capital Market Shares
You could think of the dividend pathways and the incentive layer as a sort of basic platform architecture, that enables multiple kinds of applications, of which basic income is one. You could also build a health insurance system on top of it, or build any other tax-revenue-based application.
The dividend stream each node receives is relative. Those with higher capital will have developed more wealthy safety nets, and receive more. This means that a middle class citizen in Sweden will receive more than an individual living in an underdeveloped country, or a child in Sweden will have grown a much weaker safety net than, say, a 50 year old medical doctor.
It´s actually better to imagine the basic architecture, dividend pathways + the incentive layer, as a stand-alone application. This application does give it´s users an basic stream of income, but it does not provide basic income in the classical sense.
How to prevent multiple accounts ?
Through a really good ID-system. The #DApp supports every ID-system online, and lets the crowd select which one they prefer. The choice of ID will self-organize.
The P2P paradigm
So the idea is - if you decentalize the market shares, then how much of those shares can you tap into without the system collapsing ? The incentive structure has provided an alternative to coercive force, people voluntary join a system that gives them money, but the money they receive could be tapped into without it being too coercive. You´re stealing from a surplus, so it´s a diminished reward rather than a punishment. This is done through applications that run on top of the core platform Resilience. Basicincome.co is such an application, and it provides contracts that re-distribute dividends based on some super-smart algorithm that I haven´t quite decided on yet.
Basicincome.co as an application on top of a core platform
The aggregate yeild of dividends that have been collected through the use of incentive-centered design can now be tapped into without further incenvites, as long as enough is left for the consumers. Think of the dividend pathways and the incentive layer as an alternative method for collecting tax, a decentralized method for collecting tax. Now, how much of those dividend could you tap into before you start to loose users ?
Basicincome.co is better understood as an application that runs on top of the dividend pathway and incentive-layer core. The app utilizes some of the dividends and re-distributes them. I haven´t really worked out the exact mechanisms for this. But like, just try and think about how much of the aggregate dividend yield you could 'steal' from the users without them leaving the system. Could you take half ? And translate into basic income for the less wealthy ? Or translate into health-insurances or similar tax-funded stuff.
This system - dividend pathways + the incentive layer + the decentralized taxRate paradigm it enables - was orginally dubbed Resilience and I think Resilience is a great name for what it does. It provides a tax-collecting method that is fully decentralized. An heterachical network with no beginning and no end. Organic. Humans. The human-technology civilization that I call the Resilience Network.
I made this video for some reason, it gives a perspective on how redistribution within Resilience might work -->
Technical: BitTorrent-like Optimization Algorithm
The DApp uses a really simple dividend algorithm - it computes that you share dividends with everyone who´s connected to your swarm. It then adds an optimization algorithm that routes and optimizes that traffic. This limits the traffic load on each financial platform (eg Ripple, Bitcoin).
Technical: Security, Privacy and Cryptography
The DApp does not need access to your cryptographic keys. Basicincome.co creates a list of dividend payments, and you then sign them client-side. These payments could even be issued manually by you from your bank-app, or you could use a client that automates that process. Basicincome.co then reads your ledger and updates your server-side data.
Check out these clients for an example,
How to Create Resilience
Resilience - the platform that the Basicincome.co application runs on - should be understood as part of the fabric of the Human-Technology Civilization, written into the very source code of our emerging evolution. My legacy removes coercive force from techno-social assimilation processes, and creates a subjectivity paradigm, free-will based evolution, and the last stage in the 30 year or so long internet revolution that we have lived through.