OKEx Insights: Popular Trust Game Circles UBI User Guide

Original title: "OKEx Insights: Popular Trust Game Circles UBI User Guide, which one are you?" 》

Original source: OKEx Insights

Recently, have you been in your own currency circle? Have you seen such news in the community?

This is not a one-person-one-one-one bargaining, nor is it a phishing website, but a recently popular project in the currency circle - Circles UBI, don't get confused, it has nothing to do with USDC's Circle and Ubisoft games.

The popularity of DeFi is getting colder now, and players in the currency circle are looking for the next crypto outlet. At this time, the new project Circles UBI was forwarded by V God on the first day of its launch The halo appeared in people's field of vision at the right time, and the social circle + free coin collection method instantly attracted a large number of new users.

The project party seems not to have expected it to be so popular. Circles not only swipes the screen in various communities, but even the project's official website is crowded Explosive, I often get stuck in infinite circles, and it took me more than a day just to register and verify.

Why does this Circles UBI, which is congested and cannot be realized yet, make people obsessed, and where might it go in the future? Before discussing these, let's take a look at what UBI is.

UBI where everyone gets rich together

According to Wikipedia, UBI is actually a social welfare field The term, the full name is Universal Basic Income, that is, universal basic income, which means that there are no conditions, qualification restrictions, and no qualification review. Each member can receive a certain amount of money on a regular basis, which is distributed to all members by the organization to meet the needs of the people. The basic living conditions of the country, through economic security, to implement basic human rights.

UBI has the same advantages and disadvantages as other social benefits. Proponents believe that UBI can help people to be freed from labor, so as to carry out the careers they want to do, making society More creative, flexible and practical. Opponents argue that it would make people less motivated to work and bring the entire economy into recession.

Because our world today has not eliminated national and racial distinctions, a worldwide UBI is still just a utopia. In the blockchain world that advocates fairness, there has been a project with the concept of UBI long before Circles, that is ENU.

ENU, the Chinese name of "Avocado", was launched in February 2018, claiming to create a Dapp called UBI (Universal Basic Income, unconditional basic income). A total of 500 million ENUs, except for 100 million reserved for the development team, the remaining 400 million were distributed by airdrops, and 400 million tokens were snapped up in a few days.

After being listed on the exchange, ENU quickly rose from worthless to 9 cents, and many people who are wool Earn a lot of money. ENU is also dubbed "the first airdrop coin in the currency circle". However, in August 2019, ENU founder Aiden Pearce issued an announcement on the official website saying that "Enumivo is dead", and the project fell silent.

Unlike ENU, Circles does not implement UBI in such a simple and crude way as airdrops.

According to the project white paper, Circles distributes currency in a way that, over time, will lead to equalization of wealth and become globally accessible Universal Basic Income does the same.

When new users join Circles, the project creates a new personal cryptocurrency A for them on a smart contract enabled blockchain. This currency is then periodically minted and added to their accounts. All currencies mint new coins at the same rate, meaning new currencies will always be co-produced and distributed equally to all members of the system.

Simply speaking, Circles will issue and distribute its own coins for each user at the same speed, which is the UBI property of Circles.

Who does Circles attract?

Many articles have analyzed the ingenious design logic of Circles, so I won’t go into details here. Based on my observations over the past few days, the author believes that Circles players can be divided into three categories.

A geek who pays attention to new things: firstly creating a UBI economy is a very grand and ideal vision, but at the same time Circles has Perfect and ingenious mechanism:

Inflation mechanism that encourages spending coins.

Expanding the usability of coins through mutual "trust" between users is no longer self-indulgent, and at the same time prevents one person from registering multiple accounts at the same time. Trust on Circles is similar to adding friends on social networks, except that the relationship between friends is two-way, and trusting the other party only means that you unilaterally agree that the other party's personal currency can be exchanged for your personal currency in equivalent value.

Indirect transactions between strangers are realized through the theory of six-dimensional space.

Through trust restrictions, old users who have established many mutual trust relationships are protected from being locked in by new users.

All of the above are refreshing, and geeks will naturally not miss it.

Today I trusted more people and received more coins than the day before. Source: Circles, OKEx Insights

Although this coin currently has no cash value and is theoretically unlimited in issuance, the advantage is that it does not require investment other than time and traffic For other costs, no deposit is required. That's why there are only crazy mutual trust users in the community, and some people boldly speculate that coins will be issued later in the project, and the more people trust each other, the higher the computing power.

The "fighter" who faces difficulties:Contrary to the fission of social products - old users invite new users, Circles is that new users need to find three old users to trust themselves to pass the verification and register successfully, which invisibly raises the force of Circles: sorry, If no one vouches for you, you can't get in.

When many people learned about Circles, there were no old users around them, and it was difficult to join. This may have aroused them The desire to participate, I want to see what this website with server crashes looks like after successful registration, so I collect communities everywhere and ask users who have already boarded the ship to give me some trust.

Summary

Just kidding, Circles is indeed one of the most interesting UBI projects recently , but as UNI founder Hayden Adams said, the current access method is not safe and the experience is poor.

At the same time, after the project became popular, in order to establish mutual trust with more people as quickly as possible, people are pulling groups to promote Strangers trust each other, which has gradually deviated from the original intention of the project: carefully establish a trust relationship, because that is tantamount to recognizing each other's personal currency. Coupled with the congested servers, all signs seem to indicate that premature popularity is not a good thing for the Circles project.

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