# Combining Growthrate and TransactionFees to fund a sufficient basic income **URL:** \ **Category:** Circles technical\ **Created:** [July 29, 2017, 6:18pm UTC](https://forum.aboutcircles.com/t/combining-growthrate-and-transactionfees-to-fund-a-sufficient-basic-income/246 "2017-07-29T18:18:47Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![samuel](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.aboutcircles.com/samuel/32/61_2.png) [@samuel](https://forum.aboutcircles.com/u/samuel)\ **Post date:** [July 29, 2017, 6:18pm UTC](https://forum.aboutcircles.com/t/combining-growthrate-and-transactionfees-to-fund-a-sufficient-basic-income/246/1 "2017-07-29T18:18:48Z")
I have prepared an calc-sheet comparing different markets and tools on financing a sufficient global basic income. Lets pretend the global market had already today implemented a basic income for all 7.5 Billion people. So, let’s look at three different financing tools and how they might work hand in hand together: 1. Circles GrowthRate Concept (or demurrageFee) 2. TransactionFees (B2B) 3. TransactionFees (B2C aka VAT) **1. GrowthRate / DemurrageFee** Lets hypothetically imagine the only money in the world would be bitcoin, at the current price of 250USD and a growth rate of 2% would only result in an equivalent of an ~0,01$ basic income for every person on the planet. Even if a forecast to 2030 is expecting an astounding exchange rate of 1 BTC = 500.000 USD, the basic income would still only be ~1,78 USD strong. To get somewhere near a proper basic income, we would need an evaluation of 1BTC = 50.000.000 USD at a GrowthRate of 10%. Another reference, if taking the current global money supply M2 into account of about 68 Trillion USD and the whole world would be based on Circles already today, a 2% Growthrate would result in a ~15USD monethly basic income. **2. Transaction Fee’s / FX-market and B2B-Business** If looking at the FX-market, which has an daily throughput of 5 Trillion USD a 0,01 % transaction fee would give us a ~2 USD basic income or a 0,5% fee a ~100 USD basic income Even more interesting is the B2B market. As a 1% fee results in a ~78USD basic income and a 3% fee results in ~235USD **3. Transaction Fee’s B2C (aka VAT)** A 5% B2C fee = ~60USD and a 20% B2C fee = ~245USD **Combining them all** I believe a basic income has to be financed with a broad combination of different tools. Once adding them together, a proper basic income doesn’t seem to be so far away anymore. So, how about integrating into Circles from the beginning on a voluntary option for a social transaction fee (f.e. 1%) as a standard setting, which you explicitly have to set to a different value or 0, if you don’t like it? See yourselves, please let me know, if I created false reasoning or any other brain-flaws? > **[Business Model of the HUMAN-Token.xlsx](https://docs.google.com/spreadsheets/d/1erirnJjcWnIoWxdamS3U9NF7o6qUfvjssLY9Mcd_0fk/edit)** > > Transaction Volume Market > > Total Available Market,People,Cashback / Person (75%),Cashback / Impact Fund (25%) > 7.500.000.000,year,month,year,month > B2C-Market,4,50%,1,50% > Yearly transaction volume 2015... ---
**Author:** ![blimpyway](https://avatars.discourse-cdn.com/v4/letter/b/8c91f0/32.png) [@blimpyway](https://forum.aboutcircles.com/u/blimpyway)\ **Post date:** [August 4, 2017, 11:45am UTC](https://forum.aboutcircles.com/t/combining-growthrate-and-transactionfees-to-fund-a-sufficient-basic-income/246/2 "2017-08-04T11:45:08Z")
I don’t know if I get it correctly, but the elephant in the basic income’s room is heavy taxation, no matter how it’s implemented, either as demurrage, transaction fees or both (and I don’t understand how a VAT could be implemented with blockchain) E.G. a US basic income of $1000/month requires ~25% of GDP to be put into it. If it is attempted as taxes in official currency it will be resisted politically. If tax is attempted in new crypto-currencies, it will make “capitalists” less motivated to even care to sell goods in such currencies.