Web3 Technologies and Universal Basic Income: Can Blockchain Solve Income Inequality?
Plus: The Intersection of Fashion, Music, Film, and Web3
I got delayed on pushing out this one, but don't worry it is spicier than ever 🌶️!
Question: What do Karens and SBF have in common? They both want a refund. 😂
Anywho. As you may be aware, the Silicon Valley Bank's collapse caused a ripple effect throughout the financial industry, and it could have had a significant impact on the blockchain industry. Many popular companies in the space had deposits in that bank.
Once again, we got a good reminder that to mitigate risk; it is important not to keep all your assets in one place. Stay Safe!
🍿 Quick Snack
💰 Can Web3 technologies solve income inequality with Universal Basic Income?
🎬 Web3 technology has the potential to transform the music and film industries with decentralized platforms empowering artists and NFTs being used to produce feature-length animated films.
🆕 Ethereum introduces new standard allowing users to access decentralized apps and NFTs without the worry of centralized censorship.
👟 Fashion and Web3 are coming together to revolutionize the industry with Puma leading the charge and Paris becoming a leader in blockchain usage in fashion.
🍔 The Full Meal
Can Web3 Technologies Help Solve Income Inequality with Universal Basic Income?
Income and wealth distribution globally has become more unequal in the past two decades.
Universal basic income (UBI) may provide a solution to help address this issue, but large-scale implementation of UBI may require further innovations on both technological and economic fronts.
A paper by the Tony Blair Institute for Global Change, proposes that digital transaction networks such as blockchain or other programmable ledgers can be leveraged as the infrastructure for scalable and efficient UBI implementation.
How can this be achieved, and what are the benefits?
Web3 would help to solve the issues of traditional social-welfare programmes by keeping the eligibility criteria simple: every citizen is eligible and everyone receives the same amount.
Web3 economic models created strong incentive alignment among participants of a blockchain economy, which has been extremely powerful in driving digital-asset adoptions around the world.
Central-bank digital currencies (CBDC) – digital versions of a country’s currency issued and regulated by the central bank – have been gaining interest from policymakers and the public alike as a more secure and regulated alternative to public blockchains that can provide the key transactional infrastructure for a modern digital economy.
If the digital transaction network is adopted nationwide and handles most or all of the economic transactions within the jurisdiction, a small transaction fee can be levied on all transactions processed by the network, which can then be distributed in equal amounts periodically to citizens’ wallets/accounts on the network as a UBI.
The programme also has several other advantages over traditional social-welfare schemes: it does not require any human intervention in the collection and disbursement process, thus minimizing the burden on government capacity, as well as administration and rent-seeking costs.
Furthermore, digital transaction networks as exemplified by public blockchains reduce the need for financial intermediaries and the cost of transactions, improve the transparency, speed and efficiency of economic transactions, leading to increased economic activities and productivity gains.
Despite the benefits, there are also some challenges:
Implementing a UBI on a national scale is a large undertaking for any central authority, and the cost of creating and maintaining a nationwide digital transaction network can be substantial. It will likely require significant investment upfront.
The implementation of a digital transaction infrastructure will likely also require a complementary infrastructure of national digital identity.
Onboarding the entire economy onto a single digital transaction network can be challenging. This will require behavioural changes of both individuals and corporations.
The Intersection of Web3, Music, and Film
The use case for music
The emergence of Web3 and blockchain technology presents opportunities for the music industry to address challenges such as low artist royalties, piracy, and a lack of transparency in the distribution of music.
The benefit for artists: Decentralized music streaming and distribution platforms can provide artists with more control over their music and related content, help track their royalties, and ensure they are fairly compensated.
The benefit for fans: Web3 music platforms enable fans to participate more actively in the music industry by voting for their favorite songs, engaging with artists directly, and providing feedback on their work.
Who are the players? Examples of decentralized music platforms include Pixelynx, an ecosystem aiming to help artists and fans express their ideas and connect in new ways, and Audius, a decentralized streaming platform that allows artists to share their music with fans directly.
Will NFTs invade Hollywood?
NounsDAO has approved plans for "Nouns: A Movie," an animated feature film based on its NFT characters, with a budget of $125,000 for the first installment.
The film will be produced in collaboration with Web3 artists network Atrium and will include multiple story acts that can be pieced together to form the first feature-length cinematic content introducing Nouns to the world.
The first episode will be revealed in 90 days, after which NounsDAO will decide whether to continue funding the project. 👀
Community: Nouns members will be allowed to submit story arcs and ideas for future installments.
Other Projects: NounsDAO has also approved other creative endeavors to expand its ecosystem, including building out a comic book series with Titan Comics and ComicsDAO, and releasing its second ArtBall NFT collection with the Australian Open tennis tournament.
Ethereum introduces Web3 URLs to access DApps and NFTs without censorship
Ethereum has introduced a new standard called Web3 URLs, which allows internet users to access decentralized apps (DApps) and non-fungible tokens (NFTs) without the worry of centralized censorship.
The new standard allows users to directly run a query to the Ethereum Virtual Machine (EVM), bypassing traditional centralized web servers, making them less vulnerable to censorship.
ERC-4804 will allow for "dynamic data," allowing people to leave likes, comments, and interact with content on a website.
The new standard is also expected to be able to interact with other blockchains much easier.
Fashion Meets Web3: A Look at the Future of Digital Fashion
Metaverse Fashion Week is returning to Decentraland, showcasing collections from traditional brands including Adidas, Coach, and Dolce & Gabbana.
Digital fashion has five defining facets, according to experts: digitally native garments, augmented reality filters, digital tailoring, speculative investing, and proof of ownership through blockchain data.
However, many experts are questioning who these technologies have in mind as their consumer audience, and how they must evolve for mass adoption to take place.
Puma is also investing heavily in web3 and fashion, with plans to showcase its involvement in global fashion week events this September.
The brand has cultivated relationships with web3 super customers and plans to release several web3-linked launches for its 75th anniversary this year.
Puma announced its next NFT project, a collection of 10,000 Super Puma cartoon mascot NFTs, and is working to engage with consumers in web3 through its Discord community and Roblox strategies.
Unsurprisingly, Paris has become a leader in the potential to use blockchain in the future of fashion. “NFT Paris” attracted a global audience to talk about the future of fashion, with Balmain launching a sneaker NFT collection with Space Runners and designer Danit Peleg unveiling a collection of 3D-printed dresses funded by Nouns Dao.
🍟 Extra Fries
Japanese automaker Nissan has registered four new Web3 trademarks with the US Patent and Trademark Office, suggesting a move towards the emerging technology. The trademarks suggest that Nissan is looking to establish a presence in the metaverse, a virtual space where people can interact with each other and digital objects in real-time. (Read More)
Polygon Labs and Unstoppable Domains have joined forces to support developers building Web3 applications. The partnership will introduce .polygon domains, which enables users to create a digital identity that they fully own and a portable identity across more than 750 dApps, games and metaverses. (Read More)
The CEO of Community Gaming, wants game developers stop calling digital assets NFTs and instead refer to them as digital collectibles or legendary skins. He believes that the slow adoption of Web3 games is due to flawed tokennomics and low-quality experiences in the industry. (Read More)
Uniswap has launched on Binance's smart contract blockchain after a successful governance proposal vote by UNI tokenholders. This move is expected to increase accessibility, liquidity, and awareness among retail and institutional investors, as well as drive further growth of both Uniswap and BNB Chain. (Read More)
The African Digital Asset Framework (ADAF) has launched the "6 Million African Women Project," aiming to empower women on the continent by 2028 through blockchain technology. The initiative will create educational opportunities and develop entrepreneurial skills for women in Africa and seeks to address the gender gap in the blockchain industry. (Read More)
Wemade, a South Korean gaming company, has partnered with Microsoft-backed Space and Time to power its blockchain and gaming services using Space and Time's decentralized developer tools. Roughly twenty play-to-earn games will be offered on WEMIX PLAY, its open blockchain gaming platform. (Read More)
What did you think of today's newsletter
💬 If you have any feedback or suggestions for future topics, please don’t hesitate to reach out. Follow me on Twitter to stay in touch.