We propose a decentralized system of monetary governance formed from an ecosystem of freely-formed coexisting UBI (universal basic income) currencies, each backed and governed by its own network of suppliers. The scheme creates an incentive for suppliers to issue the quantity of currency that maximizes profits while keeping their currency value stable. Since new money would be created solely through UBI, all seigniorage goes to the UBI recipients, thus removing perverse incentives for the issuing body and optimizing the money supply according to Pareto efficiency. Distribution of new money via a global UBI additionally ensures a minimum level of liquidity in currency exchange markets. Furthermore, optional features such as a demurrage rate may be set in the currencies, tailored by each issuing body as a stabilizing mechanism or determined by global consensus as a tool for taxation.
The aim of this text is to present Stéphane Laborde’s relative theory of money (RTM or TRM in French) in an accessible way, without compromising on completeness and rigour. The mathematical part is written as to be accessible to secondary school students. The text starts with a general introduction to the notion of value and presents some basic economic arguments in order to prepare the reader to the concepts developed in the RTM. The theory is then presented in section 3, which makes up the core of the text.