Circles Launches Blockchain-Based Basic Income Platform

The innovative crypto project Circles has officially launched, introducing a groundbreaking concept of Basic Income on the Blockchain. Built on the xDai Ethereum sidechain, Circles aims to create a decentralized and community-driven financial system where users receive cryptocurrency regularly as part of a basic income model.

What is Circles?

Circles is a blockchain-based platform that provides users with a cryptocurrency called Circles, distributed as a basic income. The project is designed to promote economic inclusion and explore how blockchain can be used to provide universal financial access.

Key Features of Circles

1. Weekly Cryptocurrency Distribution: Users receive a fixed amount of Circles weekly.
2. Inflation Mechanism: The supply of Circles inflates by 7% annually to maintain the distribution flow.
3. Trust-Based Verification: Users must establish trust connections to participate in the network.

How Does Circles Work?

1. Signing Up for Circles

Upon signing up, users receive an initial amount of 100 Circles.

• Weekly Distribution: Users earn about 14 Circles per week.
• Value Growth: Theoretically, the value of Circles increases as more users join and use the network.

2. Trust-Based Verification

To activate your Circles account, you must:

• Receive 3 incoming trust connections from existing users.
• Use invitation codes shared by others or verify with people you know.

This trust-based model ensures the network grows organically and fosters genuine connections between users.

The Philosophy Behind Circles

Circles aims to demonstrate how blockchain technology can support universal basic income (UBI).

1. Decentralized Financial Inclusion

By distributing cryptocurrency as basic income, Circles seeks to empower individuals financially, especially in underbanked communities.

2. Community Trust and Collaboration

The trust-based verification system encourages users to build connections and grow the network collaboratively.

3. Value Driven by Usage

The value of Circles depends on its adoption. As more people join and transact within the network, the cryptocurrency gains utility and value.

Launching During a Global Pandemic

Circles’ launch coincides with Germany’s second wave of the COVID-19 pandemic, highlighting its relevance in times of economic uncertainty.

• Economic Security: A basic income model could offer financial stability to individuals facing economic hardship.
• Decentralized Solution: By eliminating intermediaries, Circles provides direct access to financial resources.

Challenges and Criticisms

While the idea of a blockchain-based basic income is compelling, Circles faces several challenges:

1. Defining Value

The current value of a Circle remains unclear, raising questions about its real-world utility.

2. Scalability

The trust-based system may limit scalability if users struggle to establish connections.

3. Security Risks

The reliance on social verification could expose users to phishing or scams if trust is misplaced.

How to Join Circles

If you’re interested in exploring Circles, here’s how to get started:

1. Create an Account: Sign up on the Circles platform.
2. Secure Verification: Gain 3 incoming trust connections from verified users.
3. Receive Circles: Start earning 14 Circles weekly, with an initial bonus of 100 Circles.

FAQs About Circles Basic Income

1. What is Circles?
Circles is a blockchain-based platform providing users with a cryptocurrency distributed as a basic income.

2. How do I verify my Circles account?
You need 3 incoming trust connections from existing users to verify your account.

3. How are Circles distributed?
Users receive an initial 100 Circles upon signup and 14 Circles per week thereafter.

4. What determines the value of Circles?
The value of Circles increases as more users adopt and use the cryptocurrency within the network.

5. Can anyone join Circles?
Yes, but you must receive invitations or establish trust connections to verify your account.

6. Is Circles secure?
Circles relies on a trust-based model, which can be secure if users connect with people they know. However, caution is advised when verifying strangers.

Conclusion: Circles Brings Universal Basic Income to Blockchain

Circles represents a bold experiment in combining blockchain technology with the concept of universal basic income. By leveraging a trust-based model and encouraging community collaboration, Circles aims to provide a decentralized financial safety net for its users.

While challenges like scalability and defining value remain, the project has the potential to reshape how we think about economic inclusion and cryptocurrency utility.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.