Multiplier Effect of UBI

With its game-changer mechanisms such as remote distributions, transparent transaction ledgers, and reaching usable currency to the very last mile, impactMarket has seen tremendous social and economic growth in its communities since 2020. Having distributed over $3 Million in UBI, additional features like impact Farming and the new Deposit and Donate offer special incentives for donors while ensuring that 100% of each donation is directly distributed to impactMarket’s UBI beneficiaries, without losing any money in fees and other expenses.

Beneficiaries receive their UBI individually, privately, and with primacy, enabling them to utilize the funds according to their specific needs and preferences. Typically, these funds are used to cover essential needs like food and access to education and often serve as a means to start small businesses. As a result, with the inflow of new funds into these communities, we witness an upsurge in economic activity and additional positive impacts among beneficiaries and non-beneficiaries.

Financial stability and security are often necessary for individuals to adopt and leverage technology, which, in turn, drives economic growth, innovation, education, and social progress. However, it’s important to consider that the actual impact depends on various factors such as the accessibility and affordability of technology, the level of technological infrastructure, the technological literacy of the population, and lifestyle changes are influenced by a range of complimentary technological features. impactMarket’s mission, products, and features align with providing UBI to our communities and its ecosystem with these very benefits, determined in the following ways:

1. An increased ability for individuals to save has increased their ability to spend and purchase goods. When people have more money saved in their hands, they are likely to spend it on goods and services, thereby stimulating economic activity. This increased consumer spending can have a multiplier effect as businesses earn more revenue, leading to further job creation and increased incomes.

2. Increased usage of a stable coin leads to popularity and potential for the whole ecosystem, in this case, Celo Dollar. The multiplier effect seen here is the boost of a group and individual trust in non-traditional currencies resulting in some key advantages, such as financial inclusion and accessibility, spending less on transaction fees, enhanced security and primacy for the individual, decentralized freedom from financial systems and lastly, economic crisis resilience.

3. Rewards of $PACT for donors result in growth potential and utility for the asset and for each stakeholder, at large. Donors and investors simply get paid even if they do not participate in the daily activities of the protocol, but they are impacted by the profitability and valuation of their donation. This can have positive effects on the overall economy as more people gain access to financial services, engage in transactions, learn about non-traditional currencies, and contribute to economic growth.

4. As a multiplier effect of individuals receiving UBI, shops and markets surrounding the UBI communities see an increase in sales and profits as a result of higher consumption of goods and services.

5. Given that the UBI is accessed, transacted, and saved using the mobile phone application, Libera, we see an increase in the individual usage of technology. With a requirement of the UBI being access to the internet, individuals are often driven to engage other applications on their devices– Social Media and Messaging apps, Financial Management apps, Education and Skill Development apps, Healthcare and Telemedicine apps, Job Search and Freelancing apps, Government Service apps and more. UBI can provide individuals with a financial cushion, reducing their immediate financial concerns and allowing them to allocate resources toward tech adoption and innovation.

6. Unconditional capital at their disposal can empower low-income individuals by providing them with the ability to engage financial tools, knowledge, and insights to effectively manage their money. Most often, this increased financial engagement promotes financial literacy, facilitates saving and goal setting, and encourages responsible financial behaviors and decision-making.

7. For impactMarket’s Microcredit, the multiplier effect of UBI is the provision of a safety net and reduced financial barriers for individuals to start businesses or pursue innovative ideas. This encourages entrepreneurship and risk-taking, leading to new ventures and job creation, which stimulates the local and national economies.

8. For impactMarket’s Learn&Earn product, the provision of UBI creates the ability for individuals to experiment and learn with personal finances. Financial literacy increases their knowledge in turn driving individual agency, as well as, financial responsibility and ability to participate in new blockchain products.

This multiplier effect can amplify each dollar up by several times. Therefore, every dollar not only supports multiple beneficiaries but also circulates within the community, fostering local economic development as living conditions improve for all community members. By harnessing the potential of blockchain, impactMarket is enhancing individual financial well-being, which helps in breaking the cycle of poverty and achieving greater economic stability.