Circles v2 marks a significant step forward in exploring decentralized finance. Launching on May 21st, this update to the pioneering project promises a new era of community-owned money with its own unique approach to universal basic income (UBI). Built on the concept that everyone deserves a baseline income, Circles leverages blockchain technology and a decentralized network to distribute value differently than traditional cryptocurrencies or fiat systems. How Does it Relate to Decentralized UBI? Circles v2 refines the concept of community-owned money, with its core mechanism remaining unchanged: users earn one token per hour. The magic happens when trust is established between participants. They can then accept and spend each other’s unique tokens. **The Key Difference: Unlimited Supply, Fixed Distribution** Unlike Bitcoin, which relies on a fixed supply model that restricts the number of coins in circulation, Circles embraces an unlimited supply model with a fixed distribution rate per individual. This ensures everyone receives a steady flow of new tokens even as the network grows. This approach aligns perfectly with the UBI principle of providing a baseline rather than rewarding accumulation of wealth. **Real-World Utility via GnosisPay Integration** The integration of GnosisPay is one of the most exciting upgrades in Circles v2, tackling a major hurdle for many experimental crypto projects: real-world usability. By connecting Circles tokens to a Visa-compatible payment system, users can potentially spend their earned tokens anywhere Visa is accepted globally. This bridge between the decentralized world and traditional financial systems opens doors to increased adoption and broader participation beyond just cryptocurrency enthusiasts. **Circles vs. Bitcoin: A Different Approach to UBI** Martin Köppelmann, the founder of Circles, highlights a crucial difference between his project and established cryptocurrencies like Bitcoin. Bitcoin operates on a fixed supply model with a deflationary tendency due to its capped limit of 21 million coins and halving events. Circles, however, embraces an unlimited supply model, potentially leading to a more equitable distribution. **Benefits of Circles v2** This experiment in decentralized UBI has several potential benefits: – **Exploring Decentralized UBI:** Provides a real-world testbed for implementing UBI principles without relying on traditional state structures.- **Empowering Communities:** Fosters the creation of local or interest-based economies where value circulates within trusted networks. – **Financial Inclusion:** Could potentially offer basic economic participation to individuals currently excluded from traditional financial systems. – **Real-World Spending:** The GnosisPay integration offers unprecedented utility, making Circles tokens potentially spendable for everyday needs and expanding the system’s real-world impact. **Challenges of Circles v2** Like any innovative project, Circles v2 will face hurdles. Building a large and interconnected network of users is crucial for the system’s viability. Addressing value stability concerns and preventing abuse of the per-person minting mechanism will also be key to the long-term success of Circles. **Key Takeaways** The launch of Circles v2 promises significant advancements in exploring alternative economic models built on blockchain technology. It highlights the potential for decentralized governance, value distribution, and crypto’s role in social and economic change. Whether it becomes a widely adopted system or remains a valuable experiment, it contributes crucial insights into decentralization and its possibilities. **Join the conversation** If you are interested in learning more about Circles v2 and its implications, visit the official website for the latest updates and join the community to explore how to participate. Keywords: Decentralized UBI, Community-owned money, Blockchain technology, GnosisPay, Bitcoin World