** Silvio Gesell's works ** Gesell, S. (1919/1920), Verteidigungsrede, Collected Works 12. Retrieved July 7, 2009, from http://www.silvio-gesell.de/html/lp03_2_autobiografisches_2.html. Gesell, S. (1958). The Natural Economic Order (Rev. ed) (Pye, P., Trans.), London, Peter Owen Ltd. (original German edition published in 1916)
** Experiment conducted in the Austrian town of Wörgl with Gesell's money ** https://en.wikipedia.org/wiki/W%C3%B6rgl#The_Wörgl_Experiment http://www.lietaer.com/2010/03/the-worgl-experiment/
** The idea of introducing the universal basic income **
** Block-chain technology ** https://en.wikipedia.org/wiki/Blockchain
Our idea is a blend of the above listed components. Intellectual property law allows the introduction of the proposed technology. It will be open source and everyone willing to collaborate is welcome.
What it does
The project will satisfy the need to fund the universal basic income in an alternative, up-to-date way/fashion. We will use a digital triple entry accounting system simulating inflation through a negative interest rate algorithm and distribute daily basic income to consumers/users. The system will work on a currency board with the fiat money, thus making money continuously secured and circulating in the economy. The “Bincomes” will not be subject to cash withdrawal. Each consumer/ user will receive basic income daily, and if they do not spend it, they will not receive a new transaction the next day. Why do we think it will work? The Wörgl’s experiment provides sufficient proof that this system works. Although there was no notion of basic income back at that time, the principle was the same. Currently, there is also an acting bank in Switzerland that has been working on the Gesell model for the last 80 years. The existence of WIR bank shows that our theory is implementable and that our social monetary system can be put in force. The universal basic income can give freedom to people to be full-fledged individuals.
How I built it
The main innovation is to digitize inflation and utilize it to fund basic income in an automated way on daily basis. The aim is to transform inflation into basic income. This innovation will allow the social functions of the state to be transferred directly into the financial system. The current financial system has been existing for quite a long time. However, what we are trying to do is to introduce it in an entirely new pattern. The idea is to upgrade it to the point of digitalization and opportunities for introduction of a tax for the storage of the value of the money. That new tax might seem as inflation, work as inflation but this money will be at our disposal at any time as they will be floating into the system.
Challenges I ran into
The most complex was the awareness of the institution that could apply the proposed model. After more than 5 years of work, I am convinced that only a central bank can introduce this new model.
Accomplishments that I'm proud of
The idea we are proposing is a finalist from Brussels - European Social Innovation Competition 2017
What I learned
A lot of things! There are economic models that are forgotten. There is a way to build a whole new society if we change the way we redistribute capital.
What's next for basic income without printing new money-central bank upgradе
We must realize it to save humanity.