Karma Finance:

Universal Basic Income (UBI) programs, where a government pays its citizens a fixed, recurring payment regardless of income, are currently being tested in 11 US cities.

San Jose, Calif., Jan. 16, 2021 (GLOBE NEWSWIRE) – UBI is increasingly being suggested as a potential solution to mitigate the economic impact of an escalating coronavirus pandemic.

Almost all of the UBI programs currently being piloted propose direct, unconditional cash payments to citizens, much like the way many social benefits are distributed today.

According to data from health and welfare studies by the Cato Institute, only 30% of the funds allocated to state welfare programs end up in the hands of the people who benefit from them. For private charities, an average of 82% of funds reach those who need them, while administrative and donation expenses make up the remaining 18%. Assuming similar figures for UBI programs, 70% of the funds would be used for the administrative costs of a UBI program rather than for the intended beneficiaries.

The use of cryptocurrency and blockchain technology can transform the implementation of UBI, making it inexpensive, secure, and most importantly, transparent. The main benefit of using blockchain technology would be cutting red tape, which would result in 100% of the funds reaching the UBI recipients.

Karma Finance, founded by Antoine Sorel Neron, the inventor of the first Initial Coin Offering (ICO) for cryptocurrency, is developing a new DeFi (Decentralized Finance) platform that allows users to choose whether to receive a weekly UBI payment or on one Want to compete in the community reward pool. Users who participate in the rewards pool are given a strong incentive to provide the funds required for the UBI program itself.

“Decentralized finance and UBI are a natural fit, especially as we work to build economic resilience in cities across the country,” said Neron, who grew up on the South Side of Chicago. “Decentralized finance should create a more inclusive and open financial system for everyone. We may not be able to do this for the world’s billion plus poor just yet, but at least we can create a viable solution to help ordinary people affected by COVID, even as national budgets tighten. This is where the public can step in to help. “

Karma Finance will be the first DeFi application developed for UBI.

About Karma Finance

Karma Finance was launched on August 31, 2020 with the aim of providing a financially funded solution for the Universal Basic Income through blockchain and smart contracts. As a community-based project that aims to empower users affected by COVID and other economically devastating events, it uses a unique DeFi (Decentral Finance) protocol that Karma-Engel uses to use the Ethereum cryptocurrency for the benefit of other users can use the direct UBI payments received from the system.

Email: media@karma.finance
Phone: 800-371-7177

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