Abstract

This proposal seeks to introduce a constitutional clause requiring that 1% of Cardano's annual Treasury funds be allocated to a Universal Basic Income (UBI) program for every validated individual registered on the Cardano network. Over time, this initiative will significantly reshape Cardano's governance, positively impacting the lives of everyday people, promoting the adoption of ADA as a reserve currency, and enabling new consensus mechanisms. The ultimate goal is to align with Cardano's vision of empowering individuals with financial and identity rights.

Motivation

1. Fostering a widely recognized Decentralized Identity (DID) System For individuals to participate in the Cardano UBI program, they must possess a validated, unique identity that is widely recognized. This identity will serve as the foundation for a Proof of Personhood system. By building the UBI system on this premise, we will make the issuance of high-quality decentralized identities a financially sustainable and viable endeavor. 2. Promoting Cardano adoption: One major barrier to mainstream cryptocurrency adoption is the lack of a regular income stream in digital currencies. Most people currently need to convert their fiat currency to crypto, and there is a limited range of services offered on cryptocurrencies. With a global UBI program, every person in the world would be eligible to receive ADA, creating an organic demand for merchants to accept ADA and strengthening the ADA-to-fiat exchange ecosystem. 3. Enabling a superior democratic system: Current democratic systems on Cardano are primarily asset-driven, where voting power is determined by the amount of ADA one holds. While lowering the barrier to vote is a step forward, it does not truly create a decentralized voting system. A genuinely decentralized governance model should incorporate multiple decision-making mechanisms to distribute resources and establish checks and balances. This proposal paves the way for developing a new governance system within Cardano. Although resource-based consensus has been effective for securing the ADA network, it falls short in fostering consensus for democratic decision-making. The "one person, one vote" principle is widely recognized as a fair and effective way to build consensus within communities, which can only be achieved with a strong identity system in place. 4. Contributing to the eradication of poverty: In practical terms, the UBI system will likely begin by distributing small amounts, perhaps a few cents or dollars per person. However, once this infrastructure is established, it will be revolutionary for humanity. With a system capable of distributing resources to every person globally, solving extreme poverty will depend on how much humanity is willing to allocate to the system and the strength of the identity verification processes across different regions. 5. Decentralizing treasury asset decision-making: The UBI system is not designed to fund the core infrastructure that Cardano needs, but allocating 1% of the treasury towards this initiative will not hinder its development. By directly distributing assets to users, we will achieve extreme decentralization, empowering individuals to make decisions that best benefit them—whether it’s purchasing essential goods or crowdfunding new application developments. This approach shifts decision-making power to the hands of everyday users, enabling a more democratic and decentralized governance. Conclusion: This project is bold in its ambition and has the potential to reshape the industry. Similar to the Apollo program, the goal of eradicating poverty may seem insurmountable, but striving towards this objective represents the most noble cause any cryptocurrency project could pursue. Cardano is uniquely positioned to take on this challenge, showcasing to the world how its advanced technology can heal broken democracies, empower communities, and help every individual on the planet achieve their full potential.

Rational

In the broader scope of Cardano investments, this proposal represents a relatively low-risk investiment, considering the immense potential and network effects it could generate. By committing a small portion of the Treasury to a UBI system, Cardano can make significant advanvcement in identity verification, adoption, and governance. After the decision this proposal is approved, resources should be allocated towards it. However, distribution should only begin once a valid identity solution meeting all Proof of Personhood criteria is implemented and has sufficient number of users are registered in the system. The funds should be send at a consistent and predictable rate, based on available resources. As the system matures, identity-driven democracy can play a more central role in Cardano's governance. Step 1: Define all requirements for the identity system, ensuring that resources are distributed only when enough identities meet these criteria. Step 2: Develop Localized Identity Solutions: Centralized KYC by Intersect: Intersect is already operating in various countries globally, and it could play a key role in verifying the identities of individuals who wish to join the Cardano UBI system. This could function similarly to a social network, where Intersect empowers its members to validate others’ identities. Once an identity meets all the required criteria, it is considered unique and valid within the system. Long-Term Solution: Link trusted identity sources such as Open Banking and government-issued IDs to Decentralized Identifiers (DIDs): By linking trusted local identity to DIDs, Cardano can establish a robust, automated Proof of Personhood system. This system could operate alongside the social validation mechanism provided by Intersect, creating a complementary and multi-faceted approach to identity verification. Step 3: Integrate Identity into Cardano’s Governance System: Once a reliable identity system is in place, it should be incorporated into Cardano’s democratic processes. This would include identity-driven elections for community values, project roadmaps, and budget allocations, ensuring a more decentralized and representative governance model.

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