Cryptocurrency has sparked countless debates, but a growing question is whether it could resemble Universal Basic Income (UBI) in the private sector. UBI is a concept where everyone gets a fixed income, providing financial security without the need for traditional work. Now, crypto enthusiasts are wondering if blockchain-based rewards, like staking and airdrops, could serve as a similar safety net. But with AI, robotics, and automation transforming productivity and labour, the line between work and income is getting blurrier. Could crypto be the answer in a world where machines do most of the work, and human labour is no longer at the heart of economic participation?
There’s already a model in place that feels somewhat like UBI in the crypto world—airdrops. These are essentially free tokens distributed to wallet holders who meet certain criteria, like owning a specific cryptocurrency or participating in a blockchain network. The process doesn’t require manual labour or traditional productivity; it’s simply a benefit for being part of the digital space. It’s decentralised wealth distribution, providing regular income streams to participants, somewhat like UBI does in a government-backed system.
Another form of passive income in crypto is staking. Staking lets users lock up their tokens within the network and receive rewards in return. No work, no hustle—just holding tokens generates income. For those familiar with traditional economics, staking feels like a modern twist on savings accounts. But instead of earning a trickle of interest from a bank, you earn digital currency for letting your assets contribute to the security and functionality of the blockchain. The productivity in this case? It’s no longer tied to human effort but the network itself. It’s a powerful signal of how the notion of labour is evolving in the age of decentralised finance (DeFi).
In DeFi, productivity doesn’t come from sweat equity. It comes from liquidity pools, yield farming, and smart contracts, which allow users to earn returns by contributing digital assets. This system is automatic, decentralised, and distributed. For the crypto-savvy, DeFi opens up new forms of financial participation, letting assets generate wealth without the traditional idea of working for a living. This mirrors the goals of UBI, which seeks to create a foundation where people can survive and thrive without needing to rely solely on traditional labour.
But while crypto offers these income streams, they are far from universal. Traditional UBI is for everyone, regardless of economic status or access. Crypto’s version is more selective. Participation in airdrops, staking, or DeFi requires either ownership of certain tokens or a willingness to navigate the complex world of blockchain. It’s a space where early adopters and those with assets benefit most, while others might miss out. In this sense, crypto’s version of UBI is limited by the barriers of entry—whether that’s knowledge, access to digital wallets, or simply having enough capital to participate.
Volatility is another key challenge. Traditional UBI is designed to be stable, providing enough to cover basic needs. But in crypto, the value of tokens can fluctuate wildly. A stream of staking rewards might be lucrative one week and nearly worthless the next, depending on market conditions. This volatility makes it difficult to rely on crypto as a steady source of income, particularly for those who need financial security the most.
Crypto income streams are also subject to the experimental nature of blockchain. Staking rewards, liquidity returns, and even airdrops can be influenced by changes in governance, updates to protocols, or shifts in network priorities. While the idea of decentralised wealth creation sounds ideal, the practical realities often make it unstable compared to the consistency UBI is meant to offer. What happens when a protocol shifts gears, and suddenly the staking rewards you’ve been counting on dry up? It’s a risk that crypto participants must navigate.
So, where does labour fit into all of this? The world is moving towards a future where machines, AI, and automation are driving most of the productivity. Robots don’t clock in and out. AI doesn’t ask for pay raises. In this context, traditional labour is becoming less central to how value is created. The shift is already happening—factories are automated, businesses use AI to answer customer queries, and entire industries are rethinking how they function with minimal human intervention. Productivity is no longer tied to human effort but to the efficiency of algorithms and machines.
With labour being sidelined, the question of income distribution becomes critical. If machines are doing the work, how do humans earn a living? UBI has been presented as a solution—a way to ensure that people still have financial security even when their role in the workforce diminishes. Crypto, while not a perfect substitute for UBI, taps into a similar idea. It decentralises wealth and allows people to earn without directly engaging in traditional labour. The rise of staking, yield farming, and airdrops shows that financial rewards can come from simply participating in a network, without the need for labour in the conventional sense.
But crypto’s biggest limitation is its exclusivity. Unlike UBI, which is meant to be universal, cryptocurrency-based income relies on participation, ownership, and sometimes significant technical knowledge. It’s a far cry from the accessibility of traditional UBI, where everyone receives the same amount regardless of their background. In the private world of crypto, wealth distribution remains tied to those who can afford to enter the system or who have the savvy to navigate its complexities.
As automation, robotics, and AI reshape industries, the way we think about work and productivity is bound to change. Human labour is no longer the driving force of wealth creation, and systems like UBI or crypto-based income streams may be the next step in adapting to this new reality. But while crypto offers fascinating tools for decentralised wealth distribution, it lacks the universal safety net that true UBI provides. It’s an exciting experiment, but one that’s still far from being the answer to a post-labour world.
In the end, while crypto can offer passive income streams similar to UBI, it’s still a system that thrives on early participation and ownership. The conversation around labour, productivity, and income is evolving, and crypto is a part of that dialogue, but it’s not quite ready to replace the idea of a universal income for all. For now, it’s a glimpse into a future where machines do the work, and wealth flows differently—but it’s still a work in progress.
