Hive offers a universal basic income(UBI) without even trying to

I'd like to point out that I am personally against the concept of a universal basic income because I believe it is widely unsustainable, not economically profitable on a large scale of things but as you'd expect, Hive's UBI is different.

You see, economies are built around "production and consumption" but the sad reality is that many economies lean much towards consumptions which in turn causes the devaluation of their own ecosystem as more value moves out than what is produced.

Even without trying, the blockchain ecosystem is materializing much like global economies with segmented global networks serving as native economies, each to itself, thus governed by its own consensus protocols.

Blockchain economies to grow exponentially

In the past couple of years of blockchain and cryptocurrencies existing, there has been no serious attention given to building value structures, the majority of what happens within this space has mostly been fueled by mere speculations, no commitment to growing value or financing for profit structures that boost the ecosystem.

Well things are changing. Remember that economies are about producing and consuming, in a much tailored to blockchain definition and meaning, this simply represents building and profiting, and it points to several layers of value generating structures being designed into blockchain protocols.

Decentralized investment protocols(DeFi smart investments platforms) for example paved way for massive revenue generation during its shine, but even this was largeing leaning towards consumptions than production. With MakerDAO as a prominent example of what is going on, blockchain economies are expanding as they slowly understand the concepts of building revenue structures.

Based on numerous public reports for which I've talked about a couple of times, MakerDAO is currently invested in some yield bearing real world assets like U.S. bonds whilst also facilitating several loan deals with diverse projects out there.

This effectively gives the Maker ecosystem numerous sources for profiting, thus creating stability within the ecosystem as though even whilst the inner network continually bears value, these external revenues create a backing mechanism that not only ensure stability and sustainability but also fosters timely growth.

Hive blockchain Universal Basic Income(UBI)

Going back to the topic of universal basic income, Hive happens to offer this inner value structure of which the governments of the world have as mere discussion which I still believe is dumb, at least from the angle it is being discussed over there.

Hive's basic income structures however isn't quite basic and it has its own economic values, meaning it is not only a structure fostering value consumptions but also a mechanism for stability as it enables building.

Where is this universal basic income from? Note that when I say "Universal" here I am referring to the Hive ecosystem, that is the universe in mention. That said, Hive's universal basic income can be seen in three different value structures.

Income for supporting network stability - Hive staking

Income for adding and rewarding certain transactions on the chain - curation

And HBD Savings.

If you look at all three, you'd realize they are all basic incomes, only that they are not printed out of thin air and simply given away. In the case of hive, the giving away of this value only adds more value to the ecosystems' economy.

How?

Income for supporting network stability - Hive staking : by default, having more people stake Hive has a lot of economic value. First, the Hive tokens are out of circulation, so scarcity gives room for increased value, by default.

Secondly, having more people staking Hive gives room for enhanced network security and governance influence becomes more distributed, ensuring the chain doesn't bend towards the choices of a few.

Now in case you don't even know how staking Hive gives a basic income, there's currently an interest paid to Hive stakeholders for nothing more than just holding Hive as HP(Hive Power - staked hive).

The interest rate here is currently 2.98%. In addition to this,

Income for adding and rewarding certain transactions to the chain - curation: this is usually where a lot of people focus their attention, I mean, it has the largest share of the Hive reward pie as more than 60% of the inflation goes here.

I still call this a basic income because it comes from the protocol itself and not any external source or whatsoever. Although this UBI requires manual actions, it is still pretty basic and has its own economic values.

First, it keeps the chain alive as more data is being posted to the chain simply to reap from this reward pool, and in the process, miners are rewarded for verifying the authenticity of the data being posted. This is where UBI structures meet economics operations like mining or block validation.

In essence, the network still benefits largely from having this basic income structure, unlike what is being proposed in the legacy market.

HBD Savings: HBD is debt, and effectively, the interest it bears for holding promotes holding hive debt which in return gives it value and fosters economic expansions as developments can be funded in the said currency.

The relationship between HBD and Hive is quite a unique one, its design to eliminate Hive from supply also serves as another economic value and token scarcity leads to increased value to some extent.

So you see, Hive's basic income structures are quite universally common to all, and whilst it may have not been designed with the concept of the UBI(the free money concept with no economic value), it however serves as a better alternative with several layers of economic values as explored in this article.

Thank you for reading and please leave a comment, your thoughts matter to me

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