A New Way to Design Universal Basic Income in Token Economies

Encointer introduces a new approach to decentralized monetary policy through local community currencies. Instead of inflation or fixed supply, Encointer uses demurrage—a built-in “money burn” mechanism—to preserve the real value of its unconditional basic income. This model incentivizes circulation over hoarding, keeping local economies active and fair. By linking transaction fees to local purchasing power, Encointer ensures inclusivity while empowering each community to set its own economic parameters via on-chain governance.