Editor's Note: This article comes fromDecentralized financial community (ID: China_DeFi), reprinted by Odaily with authorization.
Editor's Note: This article comes from"Decentralized financial community (ID: China_DeFi)"Decentralized financial community (ID: China_DeFi)
, reprinted by Odaily with authorization.
What is the current situation of the CirclesUBI community? Like everyone standing with a shopping card and nothing
small town
. Everyone is looking for what's next for CirclesUBI, and this post is some of our reflections. In addition, UBI.city is already in the process of mechanism design and code development, and the community has also made new developments, which are summarized in the appendix: stage in the second half of the article. Friends who want to understand the business logic of CirclesUBI can read the appendix in the second half of the article: CirclesUBI business logic information
Design conception process of UBI.city
After a dissemination involving 400,000 people, CirclesUBI successfully took the first step, establishing a "town" of 20,000 people from all over the world, and issuing shopping cards, but there is no material to exchange in the town— —This has become the most anxious thing for the community now: how should Circles be spent, and how can Circles be worth money?
Small-town economy levels make Circles worth money
If you have read the CirclesUBI white paper, you will know that it has a 7% currency issuance mechanism. It is easy to think that it is actually a small economy with various economic elements such as population, inflation, CPI, GDP, and purchasing power. Under the definition of an economy, the value of money in the hands of individuals actually means that the currency of the economy has purchasing power.
We can analyze what determines purchasing power through the Balassa-Samuelson effect, a non-empirical empirical theory most commonly used by the IMF (International Monetary Fund):
The higher the economic growth rate of the economy, the higher the real wage growth rate and the faster the real exchange rate rise.
The popular explanation is that the money of a "small town" is valuable because its economy is good. Some people may say, isn't this a piece of nonsense? On the contrary, I think this sentence is very useful.
Let’s do the math first: Now there are 20,000 registered “residents” in the entire Circles “town”, and each person has an average of 1,000 Circles. If a Circles wants to generate a purchasing power of 1 dollar, then the town needs to have 20 million convertible coins. Commodities mean that foreign exchange reserves and internal labor need to add up to 20 million. If the residents of the small town can create more than 7% GDP growth in the second year, the additional currency issued in the market will be enough. If you want Circles to add value, you need GDP growth of more than 7%.
The problem suddenly became clear, from what Circles can exchange for something to how to build Circles Town, making it an economy with currency with purchasing power and an annual GDP growth rate of 7%.
The economy needs to be driven by pillar industries from zero to one
How should the town be built? Let’s look for an example first. Through the data source from Cepii (International Research and Development Prospects Research Center), we can see that since 1960, China, as the most successful economy in the world, has walked out of an excellent upward curve with East Asian countries such as Singapore and South Korea. :
The Ukrainian curve, whose economy has been in a downward range, looks like this:
Representatives of successful economies must have experienced good initial development. For example, the history of Singapore is as follows:
After independence, Singapore rapidly industrialized its manufacturing industry and became the world's leading electronics exporter within a decade. Next, taking advantage of its port advantages, Singapore successfully attracted top oil companies and became the third largest oil refining country in the world. Singapore's economic development has experienced a gradual transition from labor-intensive industries in the early days of independence to capital-, technology-intensive and high-tech industries with high added value, and then to the current knowledge-intensive economy such as the information industry.
The Xiong’an New District, which best represents China’s urban construction experience, has learned the success or failure experience of many cities, and after careful planning, the road map shown is as follows:
The master plan of Xiong'an New Area shows that the development of infrastructure industry will be given priority, followed by the construction and improvement of ecological agriculture and tourism, followed by the cultivation of modern life science and biotechnology industries as its pillar industries, and then according to the non-capital functions of Beijing. The new generation of information technology industry and high-end modern service industry are the result of integrating Xiong'an's natural resources, capital, labor force and other production factor endowments, combined with the advantages of location development, and forming a positive linkage with surrounding cities.
It can be seen that the initial path choices of Singapore and Xiongan New Area are to look for opportunities in the external industrial chain, develop pillar industries in line with their own advantages and positioning, and then carry out continuous industrial upgrading on this basis.
Strategy based on Circles economy
Let's take apart the cases of Singapore and Xiong'an to see the action, and see what the development strategy formulated for Circles might look like:
1. Positioning own advantages - rapid expansion & effective organization
In general, the underlying mechanism of Circles has the best population potential in the encrypted world - it can be expanded rapidly and organized effectively
The difference between UBI and Dao determines that it can be expanded rapidly:
The biggest feature of UBI is the reversal of the flow of money. Money goes to private hands first, and then to the public domain. Whether the original money is decentralized or not, it flows from the public area to the private area. This is an innovation of interest adjustment, which is at a lower level than Dao, and it is answering "who has the final say". Compared with Dao in the traditional sense, which sets various participation thresholds, UBI's mechanism of registration and participation has a very good mass base.
A refined binary core underpins effective organization
Compared with Martin's white paper five years ago, this version is more refined. All mechanisms only use two elements: transfer exchange and trust percentage, which injects a simple and infinitely possible mechanism design core into Circles. These mechanisms share Effective organization underpinning CirclesUBI
Transfer and exchange: It means that we have no central routing, and every transfer is a relay between people (Circles gave an example of six-degree connections, to clarify here, Circles does not limit the level of trust, and there is no upper limit on the number of trustees)
Trust Percentage: In the Circles network, everyone is a route to another person, so I can adjust how much I trust a person, and thus the amount he transfers to others through me.
2. Looking for opportunities to connect external industry chains——DeFi
If you often pay attention to the news of DeFi financing, you will find that the current situation is that the top projects of DeFi have generally carried out large-scale financing, and the focus of development after financing will be used to expand the community. For example the following:
Decentralized lending protocol Aave today announced a $25 million investment from Blockchain Capital, Standard Crypto, and Blockchain.com Ventures, a funding round that will serve growth in Asian markets.
If you have an understanding of the DeFi protocol liquidity attack and defense in August, you will come to another conclusion, that is: it is very difficult to build a moat in DeFi. For example, we witnessed in September that SushiSwap attracted more than 75% of Uniswap's liquidity through a fork, and Uniswap subsequently counterattacked. We have not seen that liquidity mining can provide continuous impetus for the development of DeFi, and it is more of a stock game.
Traditional sources of competitive advantage such as economies of scale, switching costs, patents, and regulatory licenses lose their relevance when code is open source and capital can move freely across the Internet. Is there any user development strategy that can provide continuous development momentum for projects in the DeFi world?
Exactly two weeks ago, CirclesUBI reached 400,000 views in 7 days, and attracted 20,000 users who pay attention to the encryption world and use encrypted wallets with almost unavailable services. Another comparison data is that CirclesUBI founder Martin Gnosis, another project of Gnosis, only attracted 10,000 users in three years. CirclesUBI has become the most attractive solution under the proposition of how to continuously expand DeFi users. The users brought by CirclesUBI are not through advertisements, but through the development and expansion of relationships. People learn encryption knowledge through mutual assistance. This is the natural foundation of community.
Does DeFi meet the development needs of CirclesUBI?
According to coingecko statistics, the current market value of DeFi has reached 12 billion US dollars, and the total value locked (TVL) has reached 10 billion US dollars. Three years ago, this figure was less than one billion. The existing volume of DeFi has given CirclesUBI an opportunity to start the industry, and the past growth rate and future space of DeFi have given CirclesUBI a guarantee for future population and currency growth.
3. Create an infrastructure in line with the direction of the industry - UBI.city
“The new political form can be varied, but the potential of a layer 2 system based on the base protocol is by far the most opportunistic aspect of this project and remains an absolutely open question for further research”
---- CirlesUBI White Paper
The above passage is not only the conclusion of CircleUBI to the first stage, but also the beginning of the next question: what should the second layer of CirclesUBI have? Just like Satoshi Nakamoto, CirclesUBI left the problem to the community and became the starting point for the community to think. In fact, it seems that this has already been answered.
The second layer of CirclesUBI is UBI.city, an infrastructure based on the advantages of CirclesUBI and providing services for industrial development. The types of industries here can be very rich, such as DeFi, NFT or even physical goods advocated by Martin...you can use UBI. The city is regarded as an "industrial park" on CirclesUBI. In the first phase of the project, UBI.city will serve the demand for the expansion of DeFi. Work involving the following:
CirclesUBI underlying service optimization
The current CirclesUBI service is still not stable, and its functions are relatively weak. Fortunately, except for the server code which is not open source, the related codes of CirclesUBI are all open source. Therefore, the intervention workload of this part can be determined according to the progress of the CirclesUBI team. The ultimate goal is a stable, complete, and simple user experience.
Connect everyone's Circles and City tokens
By becoming a bridge between Unicom DeFi and CirclesUBI, City tokens can have value. Next, you need to connect personal Circles and City tokens—this is the most important core of UBI.city. The solution should not only avoid the introduction of value assets from breaking the original game balance and bring false account attacks, but also not restrain UBI community expansion. Therefore, it is necessary to make full use of the characteristics of the Circles binary core and deploy UBI.city's organizational algorithm contract so that the trust relationship can quantify the value and form effective labor. In the end, Circles reached an exchange relationship with City through the organization algorithm contract.
Unicom DeFi industry and CirclesUBI
The DeFi industry is on the Ethereum main chain, and CirclesUBI is on the xDai network. In the solution provided by xDai, users can carry out seamless two-way asset transfer through Dai-xDai Bridge or OmniBridge (for any erc20 token transfer). UBI.city needs to design a smart contract solution for DeFi to inject assets into CirclesUBI, and CirclesUBI to return performance to DeFi. It needs to take into account several aspects: first, the bridge is stable and can meet the safe circulation volume of OmniBridge; The security and decentralized governance of chain assets, the third is to consider the possibility of future changes in the underlying system (such as migration to L2).
question and answer time
The above is our thinking in the process of designing UBI.city. Several friends have seen this information and raised some questions. I put together a Q&A
1. What is the relationship between UBI.city and CirclesUBI?
CirclesUBI is the social security bureau of "small towns", and UBI.city is the investment promotion bureau of "small towns".
2. Are other industries not allowed to develop?
Allowed and very welcome, UBI.city also hopes to become the infrastructure of other industrial ideas during the construction process.
The Circles scene has unlimited potential and should be developed together by various industries. Just like Las Vegas not only has gambling, but also tourism, Singapore prospered because of its port, and is now the most important financial city in Asia. Circles must be a multi-scenario community, so what is a pillar scene? There is only one answer, which is to do it. Insightful people should stick to their judgment on the pillar scene and take action, let the community vote with their feet, and also deal with other scenarios Be tolerant, because everyone who owns Circle is a community of interests.
3. Will the features of UBI disappear?
UBI.city is completely based on CirclesUBI, so Circles is always in your hands, which means that everyone can leave with money at any time.
4. Will foreign communities be considered?
We will move forward step by step.
Competent friends can do things independently, and UBI.city will design rights and interests for those who are fruitful.
5. Do you need engineers?
In addition to engineers, researchers and evangelists are also needed.
Competent friends can do things independently, and UBI.city will design rights and interests for those who are fruitful.
6. Will you miss the heat?
UBI is a big proposition. If it is only supported by the heat, we think it is worth noting.
7. What does the Circles deal look like?
CITY is the erc20 token of UBI.city on the main network, and it is the transaction carrier between Unicom Circles and the main network.
UBI⭕️city
8. What should I do now?
a. Register and activate the account earlier to accumulate UBI currency.
b. Be a helper, build your own influence, and be self-motivated to do something.
9. Is there a logo?
Appendix: Phase Summary
Proposal for the first CirclesUBI
We are currently designing the mechanism of UBI.city, and have made breakthroughs in the overall structure and kernel design. You will see the first version soon, hoping to provide the community with a blueprint for open discussion.
research and development
2. Two basic functions based on community needs are being developed, the front-end is ready, and the back-end functions are being developed:
Community
The xDai faucet that is not so easy to cut off the water - solves the problem of process blocking during the registration process;
The "bazaar" where the community gathers - a tool for community circles to demonstrate value propositions, looking forward to the future.
3. A relatively complete study of the code status of CirclesUBI to prepare for the core functions of UBI.city. The code information is at the end of the article.
Community
In China, the UBI community we initiated has a total of about 1,900 members. Judging from xDai’s currency data, the UBI community already has a scale of several thousand members.
The Circles in the hands of most people has reached hundreds of digits.
There are many great friends in the community. After the UBI.city proposal was published, they expressed their desire to participate. We are trying to gradually build a structure and open up community resources. Friends who are capable can do things on their own, and UBI.city will give results. people design interests.
Appendix: CirclesUBI business logic information
Due to the lack of official documents, there are two clues to clarify the current situation of CirclesUBI, one is the interface jump relationship, and the other is the order of data requests
Interface jump relationship
Source: circles.garden website
welcome https://circles.garden/welcome
The servers of circles.garden were overloaded, and there were many problems. At the peak, the servers of circles.garden encountered 70 million requests
Sign up https://circles.garden/welcome/onboarding
Username
From: https://github.com/CirclesUBI/circles-myxogastria issues
email
Because the server is overloaded and the process cannot run through, we can only summarize a jump sequence through historical records and produce a process list
register login element
Enter mnemonic
log in https://circles.garden/welcome/login
The background link used https://api.circles.garden/api/users/
show mnemonic
Verify mnemonic
activity
Trusted by
main interface elements
search
Homepagehttps://circles.garden/
User details https://circles.garden/profile/0xD2d0A1f605cB3fB294c4949f857c4Ce9d233Ed97
Show Profile
Show QR Code
My QRcode https://circles.garden/share
Hey! Check out my Circles UBI profile! https://circles.garden/profile/0x60bA60707F7fdC5FD0373daeEF53cBFe89C35908
Avatar + the number of Circles obtained since the success of the community account
search
Activity Log https://circles.garden/activities
already trusted users
QR code
Send Circles https://circles.garden/send
search
Transations (transfer records)
direct trust https://circles.garden/send?query=&filter=direct
In your network https://circles.garden/send?query=&filter=indirect
External https://circles.garden/send?query=&filter=external
other
Settings https://circles.garden/settings
Device address
Profile address
Token address
status
End Session
Export Seed Phrase https://circles.garden/seedphrase
search
source:
Scan QR code
other
Data Request Order
source:
Smart contract code: https://github.com/CirclesUBI/circles-contracts
apiServiceEndpoint: 'https://api.circles.garden/api.',
Core business logic code: https://github.com/CirclesUBI/circles-core
graphNodeEndpoint: 'https://graph.circles.garden/subgraphs/name/CirclesUBI/circles-subgraph.',
Related API interface
relayServiceEndpoint: 'http://relay.circles.garden.'
The smart contract business chain includes: HUB, PROXY_FACTORY, SAFE, SAFE_FUNDER
Centralized server:https://github.com/ChinaDefi/CodeFromCirclesUBI
