Cryptocurrency

Blockchain Summit Latam: Achievements and challenges of UBI, basic income token in Ethereum

Proof of Humanity associates verified identities with Ethereum addresses. Each person registered in Proof of Humanity receives one unit of the UBI token per hour.

“The challenge is to make the UBI valuable and remain valuable over time, and for that, we are thinking of various mechanisms.” These words correspond to the Argentine developer Santiago Siri, co-founder of the Proof Of Humanity project and the basic income token UBI.

Blockchain Summit Latam 2021

During his presentation yesterday, September 8, at the Blockchain Summit Latam 2021, Siri expanded on this project he is working on. He was accompanied by fellow Argentine Federico Ast, CEO of Kleros, and the dialogue was moderated by Cristóbal Pereira, CEO of LatAmTech.

Siri explained that his ideal is that the price of UBI is such that those who are registered in Proof of Humanity (POH), can receive a basic income of between USD 200 and USD 300 per month. As reported by Coingecko, the price of UBI is $ 0.039 at the time of writing. 1 UBI per hour is given to each registered person, which implies a monthly income of about USD 28.

“We use Uniswap pools that give liquidity contributors a benefit, so there is enough liquidity to trade UBI against DAI or ether (ETH),” Siri explains. He adds that they also made vaults, with the community of the decentralized finance platform Yearn Finance, that allows depositing DAI or ETH to generate income and burn UBI in the process to remove money from the market.

Siri believes that, in addition to making tokenomics better, for the project to fulfill its social function, the scalability of Ethereum and the reduction of the cost of gas fees will be necessary. He mentions the possibility of migrating PoH to rollups, which is a second layer solution, in order to make the barrier to entry less onerous.

A huge challenge is deploying PoH in a refugee camp. If we could do that, it would be amazing. Because refugees are being denied their identity by all the governments of the world. These are people who are entering Turkey because of the conflict in Syria. Starting with Afghanistan, we will also see 1 or 2 million refugees in Europe. What rights will we give these people? And what means of subsistence? If we can achieve from the Ethereum community what governments cannot, we will show that we have a very powerful technology.

Santiago Siri, co-founder of Proof of Humanity.

Already in 2015, in his book “Hacktivism”, Siri made reference to the possibility of using blockchains for tasks that are carried out by States. As can be read there, a “blockchain is, in a sense, a universal bureaucracy.”

Proof of Humanity: a decentralized database on Ethereum

The UBI token, which is given to those registered in Proof of Humanity, serves as a monetary incentive for Ethereum users to wish to register. The primary goal of PoH is to create a decentralized database that links verified identities with addresses on a blockchain.

Federico Ast mentioned that in Kleros they had experimented with a system that served to verify which tokens are legitimate and which are scams or Ponzis. From there came the idea of ​​thinking of a system to verify the identity of people.

PoH project

The PoH project was born, in conjunction with Siri, in 2019. “It is working very well for now, because it has allowed us to build a list of humans in which we have not detected duplicate people, so the objective has been met,” explains Ast.

The potential use cases of a list of these characteristics are several: access to decentralized social networks, airdrops (as is the case with UBI), or participation in decentralized autonomous communities (DAO), for example.

The mechanism for registering for PoH includes recording a video showing an Ethereum address. The interested party must recite, in English: “I certify that I am a real human and that I am not already registered in this registry.”

As Smart price has reported, some recognized personalities have tokenized their identity in Ethereum through Proof of Humanity and, as a consequence, also receive the UBI token. Among them are Ethereum co-creator Vitalik Buterin; the former Argentine basketball player, Manu Ginobili; and the CEO of MercadoLibre, Marcos Galperín.

Blockchain Summit Latam

During the talk at the Blockchain Summit Latam, the case of the Argentine businessman Martín Migoya was mentioned, whose profile in PoH was closed for failing to meet certain requirements, and he had to do it again. Also, Siri’s own profile had an error in the video, so it was not considered valid and he had to re-register. For Federico Ast, these are examples of true equality before the law.

“It doesn’t matter if you are the founder of a startup that reached an IPO on Nasdaq or if you are the founder of a very important project. Santi saw his profile challenged . Can you imagine, for example, that Facebook removes Mark Zuckerberg’s profile for breaking some rule? It is the difference between a monarchy and a republic, in which we are equal. (…) In addition, everyone receives the same amount of UBI. That is one of the requirements of a universal basic income, which is equal for all.

Federico Ast, CEO of Kleros.

Mehran Khan

Mehran Khan is a Software Engineer, a leading Digital Marketing expert in Pakistan. With over 4+ years of experience in digital marketing & SEO.

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