For those of you that are unaware, URI stands for Universal resource inheritance. I know some of you watching this video right now are probably thinking, if this isn’t just another term for Universal basic income which some believe is a redistribution of wealth usually resulting in robbing well-to-do Peter in favor of redistributing it to slothful Paul. This video will not be a rehashing of the morality of this proposal, instead, it will focus on the benefits to the EOS holders. Because, let’s be honest with ourselves, at the end of the day, most of us are not involved with the blockchain industry out of any sense of morality. Most of us are here to make profits, pure and simple. And in my opinion, there’s nothing wrong with that. In fact, I find that most of the time, those that often deny the reality that they are interested in profit are usually running some sort of scam or are woefully naive to the realities of the world. But there does exist a rare few extraordinary, knowledgeable people who are honestly trying to make the world a better place.
Okay so let’s get to it, I believe we can best answer the question of whether this would be a good or bad thing for EOS in terms of benefit to the community, by breaking it down into a few key categories. The first category would be Inflation, obviously, which I’m sure is a big issue on almost all EOS holders’ minds when they think about this proposal. The second category will be Injustice; I’m sure substantial EOS holders would be concerned about this proposal unfairly penalizing them. And the third category will be focused on Profitability or benefit to the EOS holders if such a proposal where to be enacted.
Okay the first category is going to be Inflation,
I know many EOS holders will be significantly concerned about inflationary cost to the overall EOS mainchain network. And rightfully so, many of us have seen the corrosive effect that excessive unaccountable money printing has had on the overall paper money traditional system. Every year, it becomes more difficult to pay for basic necessities due to the excessive spending of traditional governments with excessive inflation both hidden and announced, which the modern citizen has very little control over in some cases, and no control over in most. As a result, inflation has become a dirty word in the minds of many cryptocurrency holders today. I think it’s important to point out at this stage that currently, all major cryptocurrencies have some form of inflation or another. But the difference is that the inflation is tightly controlled, and can be verified in witness by their entire community of holders, because these things are not done in secret like it is in the traditional financial system.
As a result of full transparency, the risk of abuse by central authorities is drastically reduced, considering that there isn’t one in some cases. I point out these facts to show clearly there’s a difference between, rampant, excessive, unaccountable inflation which is often used by the traditional paper money systems, and its crypto counterpart which is tightly controlled, accountable limited inflation, put into place by most cryptocurrency communities. In most cases, inflation is a necessary component to operating a blockchain, because it is the method used to reward crypto miners, block producers, witnesses, or a host of other names of those that authenticate/process transactions on a blockchain. With the rise of newer and more sophisticated 3rd Generation blockchain, new inflation models have been applied, giving these blockchain communities new stewardship over collective community resources.
In these scenarios, the question has usually been how best to use these community resources. The rallying cry has always been to either use these resources to fund collective beneficial projects for the whole community which potentially raises the value of the token in question, or to reduce the rate of inflation which also benefits the community by increasing the value of the token. You see, in both cases, that the goal is to increase the value of the token in question. But is there possibly a third way to increase the value of a token, other than the main two that most communities adopt. And the answer is, of course, yes, there is a third option to increase the value of a token system and that option is adoption, adoption, of course, referring to how many people use the token in question and see the token as valuable.
Case in point, think about it in terms of the United States dollar, there was a time that the United States dollar was not the world’s reserve currency, and arguably during that time, the U.S. dollar was much more valuable than it is today, especially when you consider that the dollar used to be on the gold standard. Now fast forward to modern times, and though the dollar has lost value, it still happens to be one of the most widely used currencies in the world. The question is why is that? Why did the United States dollar maintain significant value even when it was taken off the gold standard, one reason is widespread use, large portions of the global population still saw the dollar as valuable, even after it was taken off the gold standard, now we can argue over reasons why people saw the dollar as valuable. Reasons such as the petrodollar monopoly, or gross domestic production dominance, or full faith and credit of the dollar being backed by the largest industrialized nation in the world at the time. Either way, the point remains the same, the United States dollar continued to be valued as a means of exchange by the majority of the world, despite all of the money printing, and not being backed by anything substantial. My point is widespread use/adoption is often a dominant component in perceived value.
The next category that we will discuss is Injustice,
does this proposal rob from the rich to give to the poor? And is it fundamentally socialist? Well I think the first thing we have to understand is that the Universal Resource Inheritance or U-R-I for short, is not the universal basic income or U-B-I. The Universal Resource Inheritance, is not basic, nor income. When I was told this in a telegram chat I recently had, I admit, I fully did not understand at face value what was being conveyed to me in that statement. But as I have had time to think on, these at first glance seemingly nuanced differences, I began to realize that a Universal Resource Inheritance system only grants you a share of communal resources, it does not give you, nor create a right to a basic income.
Every financial system today has some form of Taxation weather openly or hidden, in fact, traditional governments in particularly, use both inflationary models as well as open taxation to generate their revenue. This results in the average citizen being squeezed from both sides, the wealthy often have tools to avoid or significantly mitigate these effects. And as a result, what ends up happening is the large amounts of wealth that are passed down from generation to generation often, in and of themselves, become the foundation of compounding financial dominance. This leads to increasingly greater transfers of wealth from the average citizen to the extremely wealthy through virtue of great wealth alone, not innovation, fair competition, or even wise stewardship. The system currently in place gives an inordinate advantage to the massively wealthy beneficiaries who, in many cases, have no other virtue other than they happen to have been born into great wealth. They begin to use this wealth to control and influence the mechanisms of the global market and government powers who, more often than not, become overseers of excessive regulations which eliminate smaller competitors from the competition. This often increases the large corporations’ market share in the process. These corporations are usually owned by large financial institutions backed by global elites, in some way or another.
Essentially stealing from slothful Paul’s older brother, productive Philip, to give to well-to-do Peter’s banker, money bags Percy, through means of unfair and unbalanced taxes, regulations, and unlawful marketing practices enforced by governments, which in the final analysis is not particularly Free market capitalism, instead, the current system we have today is Crony capitalism. I don’t think anyone listening to me right now would think this was particularly fair. In the traditional system, this has been allowed to not only propagate, but now has become a significant source of grief and Injustice to a large swath of the world’s population.
Traditionally wealthy, and well-connected influential businessman, entrepreneurs, financial institution chairman’s, and politicians, often use socialist movements as weapons against the productive masses that potentially could disrupt the system, often promising them things along the lines of more generous welfare programs and various government stipends, paid for by the ever-increasing excessive taxation of the average productive citizen. The wealthy usually escape these burdensome regulations and excessive taxation, because they can afford the tools needed to navigate increasingly complicated income taxation and business regulations. In short, the average productive citizen is squeezed from both sides, with the global wealthy elite on one side, and the armies of useful idiots on the other.
If these things are not addressed within the EOS blockchain, history will likely repeat itself. This is why the Universal Resource Inheritance is needed in the first place. There has to be a genuine equitable way to balance out the necessities of the average holder and the influential wales. To use the analogy borrowed from Dan Larimer, imagine, if you will, that you have two children fighting over a cookie, instead of taking the easy way out and dictatorially deciding who gets what. You instead decide on a fair way to distribute the cookie, by allowing one child to cut the cookie into halves, why allowing the other child to distribute the haves to both parties, and as a result, both parties are much more concerned with fairness when they individually have something to be gained and lost at stake.
This system does not stop the productive wealthy from being profitable and competing fairly within the system, but it does significantly reduce the impact of those that inherit wealth and find it more interesting or useful to use their inherited riches to keep others from competing with them, so they can maintain what they have, rather than simply creating new products, goods, and services that benefit the entire community. In short, this will significantly reduce any user’s ability to monopolize the EOS Network by simultaneously reducing their ability to bankrupt the users of the platform. And I know there are probably those of you that are thinking to themselves right now, “how can anyone have a monopoly on the EOS platform, after all no one’s allowed to own more than 10% of the network,” and to that, I would reply, there are always ways to circumvent preventive measures, no measure or system is ever perfect. Also consider that this universal truth remains valid throughout history, the more money one has, the easier it is to make a return on principal, a wealthy individual will only have to make over the proposed rate of annual inflation to mitigate any perceived loss in value which when you consider that EOS is shaping up to be a passive income blockchain, will become increasingly easier as time goes on, whether it is through the resource exchange, Ram trading fees, or some other means that is yet to be proposed.
Okay last but not least, now we will focus on the benefits for the EOS holder, AKA how does it profit us as a community.
I’ll start with the significant change in the token-economy, this will be a drastic improvement, pure and simple, and will likely attract a significant amount of new users into the EOS platform; new users from all over the world. Imagine all of the untapped potential that exists and much of the existing third world today in particularly, people that have no other opportunities that will, all of a sudden, find themselves in a secure Financial structure similar to the banking institutions without the downside of centralized control. This will allow many of them, for the first time, to begin saving for the future as well as reinvest in their individual communities, planting seeds for further financial growth.
Consider world public opinion of a blockchain that begins to lift people in the third world out of poverty, for the first time in history. All sentimentality put aside, this will be great for public relations on how people of the world will see the EOS blockchain, and there’s no telling the final outcome of potentially seeding countless future EOS blockchain-based economies in the third world that will see the EOS blockchain as a way of life, and de facto become very welcoming communities to EOS-based businesses in the future. This is especially true when you consider that they will have a vested interest and will be highly incentivized to drive forward the success of the EOS blockchain. This may even result in the EOS token becoming legal tender in some countries, only time will tell.
And I know there are those of you thinking to themselves, right now, that’s all well and good, but it will not be inexpensive to onboard all of these new users, especially when you consider the cost of RAM per account. And to that, I would say that there is a term in business known as ‘new customer acquisition costs’, most times, businesses are known to spend as much as 50% profit margins just to acquire new customers for their company. In the same sense, the EOS decentralized autonomous organization is no different, the inflation will be used for new customer acquisition, it is quite frankly the cost of doing business and will give the EOS blockchain the highest chance of mass adoption. Also, if the inflation in future ever becomes a problem, it can always be rolled back if the community wishes.
To be quite blunt, the overwhelming majority of people are not overly incensed with the concept of annuity, and for those of you that don’t know, an annuity is defined as a fixed sum of money paid to someone each year, typically for the rest of their life. Granted, in the traditional financial industry, there is usually a large amount of money you have to pay, and a certain age bracket you have to be in before you can qualify to purchase an annuity. But in my opinion, the concept largely remains the same. The only difference is the amount of money that the beneficiary has to pay, the cost of participation will of course be having a verified account, and whether the beneficiary pays for the account outright, or a benefactor covers the account creation cost on the behalf of new users—as in the case of Block One, or possibly the EOS community—the accounts still get paid for, one way or another. With every verified account being attached to a unique identity, this will significantly reduce the Waste, Fraud, and Abuse that are so commonly rampant in the traditional welfare system currently in use by many first world nations today.
In my opinion the more people we have using the system, the more demand there will be for Eos resources, which means more upward pressure on token prices, and higher token prices benefit the entire community, this effect will far outstrip any amount of reasonable inflation we create in the process. It will likely allow us to quickly surpass Legacy blockchains and become the premier blockchain standard for years to come.
For the record, I personally am against the original concept of the Universal Basic Income system, because of reasons stated earlier, but I am very much in favor of the Universal Resource Inheritance proposed by Dan Larimer. Let me be clear, the EOS Universal Resource Inheritance will not be the EOS version of a welfare program similar to traditional welfare that plagues most first world nations and creates a significant taxation burden on productive citizens. The EOS Universal Resource Inheritance system, is not a Universal Basic Income system, it does not guarantee one a right to a basic income, as that would be arbitrary and open to interpretation. Instead, it merely grants beneficiaries a share of EOS community resourcess that would be set aside specifically for that purpose.
Everyone involved in the EOS mainchain network all knew from the start that there would be some amount of inflation on the EOS Network, now we are deciding the best way to use that inflation to benefit the entire EOS community, I believe the best use for the work are proposal funds which would be the Universal Resource Inheritance proposal. In my opinion, the benefits to be gained from such a system are simply too great to pass up, not only will it grant a dividend to the majority of the EOS community, but also, it will attract a whole host of new users/investors into the EOS community, which will naturally increase demand in usage of EOS resources, which will, in turn, increase token prices for the entire EOS community, hereby attracting a greater volume of developers. This will also increase the rate of infrastructure development, which, in turn, greatly increases our chances of mass-adoption.
In the final analysis, the Universal Resource Inheritance proposal will be a significant positive for the entire EOS community, profiting all EOS holders whether directly or indirectly, so it’s not a question of if we can, or can’t afford the U-R-I system. To my mind, it’s a question of can we afford not to? If we do not, it will only be a matter of time before some other blockchain adopts this system and take the first-mover advantage.
EOS holders, are you willing to take that chance.