Universal Basic Income

The Universal Basic Income (UBI) module in the KIRA network is designed to incentivize non-sybil network participants, such as validators and governance members, through the distribution of a fixed amount of the native KEX token on a regular basis. This helps to ensure the long-term maintenance of network operations and enables these actors to perform their roles effectively. The UBI module uses spending pools to distribute the funds to eligible beneficiaries, who can then claim their allotted tokens. The supply of KEX tokens is inflated by a fixed amount at regular intervals, and these tokens are deposited into the designated spending pool(s) for distribution.

To prevent potential abuse or faults, a ubi-hard-cap is set in the network properties, limiting the maximum amount of additional KEX that can be created per year (6000000 KEX by default). Governance members are not allowed to create or modify UBI records in a way that would exceed this hard cap.

Similar to the spending pool, the UBI module provides two modes: dynamic and static, which use the dynamic field. In dynamic mode, the total amount distributed per period decreases by the amount left in the pool. In other words, if some users don't claim their UBI during a particular period, the unclaimed tokens are lost and redistributed in the next period. This is done to limit token inflation and ensure that users are actively claiming their tokens. If the dynamic parameter is set to false, the spending pool operates in static mode and distributes a fixed amount of tokens every time period. This way, users can be sure of the amount of tokens they will receive during each period, provided they still respect the target spending pool’s claim-expiry.

N/A