Struggling with billsThe Decentralized Application (DApp) will be hosted on the Bitnation core platform – Bitnation Pangea – after its release in 2015. will be a first experimental attempt to provide a system for a crypto based Universal Basic Income (UBI), entirely based on voluntary ‘taxes’ (e.g. transaction fees).

Get exclusive analysis of bitcoin and learn from our trading tutorials. Join for just $39 now. is the brainchild of Swedish student Johan Nygren, who invites the crypto community to engaged in the project and visit the GitHub repository.

Bitnation leader Susanne Tarkowski Tempelhof said to CCN:

“As an entrepreneur, I know money is something that comes and goes in life. I’ve been very wealthy and dirt poor — both with regular intervals throughout the years. To be able to create what is the beginning of a decentralised financial security – basic income – but without relying on a government, instead relying solely on technology and your own personal network, feels incredible. I know I’ll be the first one to sign up! What Johan Nygren has come up with is truly amazing!”

First suggested by Thomas Paine in 1795, UBI has gained more widespread popularity over the last few decades because some imagine a world where computers do most of the work, and few people have actual jobs despite an overall wealth surplus in society. Whether you agree or disagree with that vision, it’s undeniably a pleasant thought to have an unconditional minimum guaranteed income to live on. Furthermore, recent studies indicate that UBI improves both quality of life and economic growth.


Several governments are contemplating the introduction of basic income schemes for all citizens. Such schemes, however, are often opposed by Libertarians because they are based on additional taxation. This scheme, however, is based only on voluntary contributions and could arguably achieve the same results without coercion.

A Swarm Redistribution Model for Basic Income

The backbone of is the swarm redistribution model. Everyone who participates in a network and partakes in its culture, consumption, and functional creative output, adds a voluntary fee to the price of goods and services purchased from the network, and the fees contribute to a basic income scheme for the temporarily struggling members of the network. “Swarm” is used as in Falkvinge’s “Swarmwise” – a semi autonomous network. Tarkowski Tempelhof clarifies:

“Imagine if Facebook was eBay, and a tiny voluntary transfer fee was added to what everyone pays for objects/services purchased.”

She also emphasizes that the UBI scheme is not charity, but something that everyone needs at some point in life, because there are always ups and downs.

Bitnation is a collaborative platform for DIY Governance, providing borderless, decentralized and voluntary type of blockchain-based governance applications. The Bitnation platform is set-up to host an ID system based on verification and reputation, a dispute resolution system, a Governance App and DApp library, and the ability to execute and store all your blockchain based contracts, such as land deeds, wills, child care contracts, marriage contracts, corporate incorporations, and more. solve a problem people would normally think only a government could solve, but it solves it in a peaceful voluntary free market manner, which fits perfectly into Bitnation’s vision of a voluntary Governance 2.0 future.

Also read: Governance 2.0 – Evolution of the System or Revolution Against the System?

Images from ChameleonsEye and Shutterstock.




  1. Milly Bitcoin 31/12/2014 at 05:00

    I think it was because you put links in your comment so it was moderated.

  2. Colin Gallagher 24/12/2014 at 07:12

    I’d like to see my earlier comment to this cryptocoinsnews story posted. It was reasonable and presented alternatives. Please restore it. It’s distressing to make thoughtful remarks and have them censored. Full disclosure: I am a candidate for Individual Director of Bitcoin Foundation.

  3. This kind of project is headed in the right direction, however I will never consent to any system that uses voluntary fees. Wealth distribution needs to be hardcoded from the very beginning. My proposal is that we create a new currency that will be interoperable with the Ethereum platform. We market this as a massively decentralized world-historical political experiment that can enable the general public to collaborate on all aspects of digital statecraft, including constitutional law, distributive justice, institutional engineering, and revolutionary activism. The objective would be to rapidly accelerate the development of an incorruptible stateless society for all human beings on this planet.

    Stake in the currency would be completely free and community funded providing most essential services. Upon registration, a universal passport would be officially certified, this then entitling every person to a starting balance of the currency in addition to an unconditional basic income, to be deposited into their accounts at the end of every economic cycle. All productive activity would be mediated by an autonomous financial instrument responsible for the just distribution of profits. Effectively, participants split 50% of their earnings with a global accounting system that repays a fractional sum to each member. In this scenario, productive work is encouraged, but is not required in order to benefit from the wealth of the network. Expecting donations and good will to supply the demand of the world population is misguided in the extreme and will only lead to new monopolies. Obviously, people will do their part to benefit each other, as they do in the capitalist system. However, we need an unalterable guarantee that all investments into the infrastructure are fairly absorbed and redistributed to everyone.

    Monopolies must be mitigated by a modification of the difference principle, i.e. it only permits inequalities that work to the advantage of the system as a whole. We don’t need anything particularly complicated beyond this simple accounting measure. This is nobody’s idea. This is the idea of the age. Whatever its ultimate practical implementation, the end result is the same: the egalitarian distribution of currency. From this simple principle we acquire the universal consent of the governed, and thus the support of every freedom loving person of the civilized world. As the project picks up momentum more and more people will be recruited to the cause, from the starving children of the third world to the charismatic celebrities of the Western nations, each playing a crucial role in selling this idea to the public. This will promote an exponential explosion of consensus-making. And together, we will design a new society.

  4. I suggest that incentives are necessary to induce voluntary behavior. We usually always act in our own self interest, voluntarily.
    I myself might participate for the “insurance” provided by being a member in this network.,,

Leave a reply

Your email address will not be published. Required fields are marked *