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Creator Of First ICO Developing Blockchain DeFi Platform For UBI

Karma Finance

Universal Basic Income (UBI) Planned In 30 U.S. Cities

UBI is increasingly being recommended as a possible strategy to help mitigate the economic consequences of an extended coronavirus pandemic.

Almost all the UBI programs currently being piloted propose direct, unconditional cash payments to citizens, a lot like how many welfare payments are actually distributed today.

Based on data from Welfare and Health Studies at the Cato Institute only 30% of funds allocated to government welfare programs end up in the hands of the people who benefit from it. For private charities, an average of 82% of funds reach those that want it, while fund-raising and administrative expenses account for the remaining 18%. If numbers that are very much the same are actually assumed for UBI programs, 70% of funds will go towards a UBI program’s administrative expenses rather compared to its intended recipients.

The use of cryptocurrency and blockchain technology is able to transform how UBI is actually implemented, making it cost effective, most importantly, and, secure, transparent. The primary benefit to using blockchain technology will be the elimination of bureaucracy, resulting in 100% of funds reaching UBI recipients.

Karma Finance, founded by Antoine Sorel Neron, the designer of the first Initial Coin Offering (ICO) in cryptocurrency, is actually developing a new Decentralized Finance (DeFi) platform that is going to allow users to choose either to get a weekly UBI payment or perhaps to participate in the community reward pool. Owners participating in the reward pool is going to be strongly incentivized to provide the funding required for the UBI program itself.

“Decentralized finance and UBI are actually a natural fit, particularly as we are working to build economic resilience in cities across the country,” said Neron, who grew up on Chicago’s South Side. “Decentralized finance is actually meant to produce a far more inclusive and open financial system for everyone. We might not have the ability to make it happen for the world’s billion plus poor just yet, but at least we are able to build a practical solution to help regular folks who’ve been affected by COVID, even as government budgets start to be more strained. This’s exactly where the public is able to step in to help.”

Karma Finance is going to be the first DeFi application built for UBI.

About Karma Finance

Karma Finance launched on August thirty one, 2020, with the goal of providing a privately funded Universal Basic Income solution via blockchain and smart contracts. A community based project aimed at empowering users impacted by COVID and other economically devastating events, it uses a unique decentralized finance (DeFi) protocol which allows Karma’ angels’ to stake Ethereum cryptocurrency for the benefit of other users that receive direct UBI payments from the product.

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The Rapid Growth Of Decentralized Finance

Decentralized Finance

Decentralized Finance is a concept that has emerged in the last two years. The idea behind decentralized finance is to make use of distributed ledger technology (DLT), and its off-chain components such as Internet-based ledgers to function as an online payment system. With such a system, the collection of participants is enabled to transact without being restricted by the speed of the network connection or the storage space of electronic data. In fact, such a system can be configured to operate efficiently even with minimal technological setups. Also, it enables users to control their own funds by allowing them to control their privacy, security, as well as the transfer of funds.

An emerging wave of DeFi protocols took previously glitchy and hard-to-navigate decentralized apps and exchanges, such as EtherDelta, and transformed them into high-volume, high-yield unicorns that provided crypto investors with consistently high returns on a regular basis. In terms of total value locked (the value of the assets committed to the protocol), transaction volume and market capitalization, many DeFi platforms and their associated tokens now rival the top centralized exchanges.

Figuring out the point at which decentralized finance began almost always ends up in a rhetorical debate. Some argue that Bitcoin’s (BTC) invention a decade ago marked the start of it, as the major cryptocurrency was the first peer-to-peer digital money and represents the conceptual core underpinning DeFi. Others say — and would be technically correct in doing so — that DeFi started back in December 2017, when Ethereum-based protocol MakerDAO was launched, followed by Compound Finance and Uniswap, released in September and November 2018, respectively. On the other hand, it wouldn’t be a stretch to say that DeFi’s true ascent started in 2020.

In decentralized finance, tokens serve as a form of currency. There are several ways in which tokens may be implemented in such systems. First, users may issue tokens which represent ownership of a certain amount of the digital currency i.e. tokens may be issued as e-assets.

Another way of implementing decentralized finance is through Proof of Stake (POS) protocol. Through this protocol, one can build a decentralized financial system by risking one’s own money in the exchange market in return for rewards in the form of dividends. One of the advantages of using this form of lending is that it gives access to a wider range of lenders; however, the downside of this is that there is a high risk associated with such a system since it makes it more difficult for smaller businesses to obtain traditional funding sources. Also, it requires that the borrower has a long history of paying dividends to ensure sustainability of the financial system. In order to build a sustainable financial system that will work for a long time, it is important to find a system that uses Proof of Stake as a base.

Because the distribution chain is unidirectional and allows all parties to participate in the execution of the programs contained within the platform, it is not possible for one individual, such as a broker, to tamper or interfere with this process. Therefore, DEFI and Cryptocurrency are two sides of the same coin: a robust, highly regulated, and completely trustless system that offers all participants tremendous protection. DeFi is a very important aspect of any smart contract based ICO, and all companies are rushing to capture their slice of this rapidly growing industry.