encointer -- Local Community Cryptocurrencies with Universal Basic Income
This addresses the challenge of implementing decentralized basic income systems for local communities, though it appears incremental in applying existing blockchain and cryptographic concepts to a specific domain.
The paper tackles the problem of creating local community cryptocurrencies with universal basic income by proposing a blockchain platform that prevents Sybil attacks through proof-of-personhood mechanisms and maintains money supply proportionally to population size using demurrage.
Encointer proposes a blockchain platform for local community cryptocurrencies. Individuals can claim a universal basic income through issuance of fresh money. Money supply is kept in proportion to population size through the use of demurrage. Sybil attacks are prevented by regular, concurrent and randomized pseudonym key signing parties to obtain a proof-of-personhood. Encointer features privacy by design and purchasing-power adjusted transaction fees.