This is an update for [GIP-81] that passed quorum on May 2, 2023. The Snapshot vote can be found [here].
A Journey from Vision to Action
Greetings to the vibrant Gnosis community, and to anyone else intrigued by the transformative potential of Universal Basic Income (UBI). We are excited to bring you an update from Circles Indonesia, where we’ve reached milestones and navigated challenges that have propelled us into becoming the backbone of 90% of the transactions in the Circles worldwide ecosystem.
After 5 dynamic months, we are now nearing the end of initial product-market fit testing activities. We come through this period of work with valuable insights provided by our community of users, alongside tried and tested strategies and tools that provide us with several cornerstones for blockchain-based digital UBI implementation both in Indonesia and worldwide. The synthesis of technology and community we’ve achieved, complemented by our robust collaboration with [BRIN] (Indonesian Institute of Research & Innovation), has taken us to the point of progress for a nationwide permit and redefined what it means to explore UBI in the 21st century.
The Foundation—What is Circles?
For those new to the world of Circles, allow us to introduce you to this game-changing concept. Circles is an App on the Gnosis Chain, envisioned by Martin Köppelman and Dr. Friederike Ernst, designed to serve as a universal resource network grounded in UBI principles. Our system deposits 24 Circles into every user’s account each day, a transparent and trust-centric approach towards creating a more equitable global community.
More of a visual learner? Watch the [Circles Network explainer video here].
Why UBI on Blockchain Matters Now More Than Ever
As our global economic landscape changes and disruptions occur, the importance of a stable income becomes glaringly obvious. Enter blockchain technology, a transparent and immutable structure that could be the backbone of a global UBI system. Circles aim to synergize these elements, extending tangible benefits to the most vulnerable sectors of society.
Partnerships that Fuel Progress
Our work has been greatly bolstered by remarkable partnerships with organizations like [Alam Santi], [Indonesia Basic Income Guarantee Network], and the [National Research Agency BRIN]. The community engagement fueled by these collaborations is unprecedented and ever-expanding. Indonesia, with its unique social fabric and pressing economic challenges, offers a great opportunity for us to test, validate, and optimize the model.
Deep Dive into Bali—Banjars, Economics, and Real-World Impact
Thanks to its unique ‘Banjar’ system Bali offers an ideal location to trial building an ecosystem for Circles. A banjar is a Balinese neighborhood that maintains local relations and governance. These community-centric organizations align surprisingly well with Circles’ decentralized ethos.
Economics & Adoption Metrics
With 1 Circles Point roughly translating to 1 banana (Rp. 1,000), the daily issuance of 24 Circles Points can cover about 27% of the minimum wage in Bali, which offers tangible value for impacting households.
Stories from Bali’s Heartland
For local livelihoods, Circles has become more than a novelty— we are seeing some facilitating behavioral changes as users explore a new way of exchanging goods and services for digital points amongst their peers. The users are exchanging circles with each other for homemade items, groceries, utilities, food & beverage, laundry, education, ceremony supplies, and more!
Interested to hear more from the users themselves? [Here are the first of our published user stories]. Stay tuned for more stories as we publish them on our YouTube channel over the coming months.
The ripple effects are palpable, though, of course, widespread adoption and behavioral change will take time. But the seeds are being planted, and community understanding around the concept of digital point exchanges is shifting.
The Road Ahead
From Onboarding to Sustained Transactions and Organic Growth
As the strategists and technologists progress discussions about product development and the Gnosis wallet, the engagement team focuses on nurturing the active Circles ecosystem that showcases sustained transactions and even the beginnings of organic adoption. Events and collaborations are underway initiated by local users, who are promoting Circles exchanges to help foster adoption.
Impact assessments across various socio-economic layers—urban, semi-urban, and rural—have shown that we’re hitting the mark on product-market fit, although a few product feature enhancements have been noted.
Qualitative feedback with hundreds of users’ opinions regarding Circles are also in, providing insights into the behavior and preferences of the Circles Indonesia ecosystem. A few highlights include: users view Circles not only as a trading platform but as a means for gifting and charitable donations; there is strong interest in using Circles for trading in areas with fewer sales outlets, like semi-urban Tabanan and rural Jembrana. Users are calling for features such as the ability to showcase products for exchanges, in-app communication, reviews, badges, and leaderboards. At this early adoption stage, the marketplace is fundamental and critical so that users can find items to exchange for their points.
Seeding Sustained Use: Circles Collabs
In 2024, Circles Collabs will focus on two target audiences for piloting strategies for scale. These will target micro-entrepreneurs in Indonesia who face economic hardship, but have internet-enabled smartphones, and are in locations that have demonstrated stakeholder support for use of community or alternative currencies (TAM of about 28 million). The second target audience is University students who will likely face job disparity due to technology and AI advancements (TAM of about 2 million enrolled students at any given point in time).
One of our 2023 Collab events featured a Bazaar and a visit from our CEO, Shaunda Brown, and Indonesia’s National Research and Innovation Agency (BRIN). Like to see what happened? [See the 3-minute collaboration event film here].
Co-Creating a New Paradigm
Last month, we had the sincere pleasure of hosting Circles’ visionaries Martin Köppelmann, Dr. Friederike Ernst, and Ruben Daniels, as well as our Circles Indonesia key advisor Mas Yanu Endar Prasetyo here at our HQ in Bali for a powerful strategy session. During our days together, we reflected on the journey so far, aligned on the Circles vision, made some Circles Points exchanges with some local Balinese Circles vendors, and delved into future plans for 2024 activities in Indonesia.
All of this was instrumental in the process of deepening our collective mission of ensuring Circles can have a meaningful impact on the way our world collaborates to build better equity across sectors of civil society. The dialogues, field visits, and brainstorming sessions left us inspired and brimming with ideas on how to expand the Circles ecosystem, enhance our strategies, and continue to prepare for global launch. Together, we are co-creating a new paradigm.
Conclusion: The Journey Continues
We’ve grown, we’ve learned, and we’ve adapted. Our milestones and challenges aren’t merely points on a timeline; they’re the stepping stones to a future where UBI isn’t just a theoretical concept but a lived reality. And what we’ve catalyzed in Bali after only a few months is certainly a bright beginning.
With Circles, we are not just building an app; we are building a movement, one that rethinks how society could and should function. With your support and engagement, we aim to be a living, thriving testament to what’s possible when technology and community converge for the greater good.
Thank you for your continued support. For further inquiries or more information about Circles, feel free to reach out to shaunda@circlesbali.org.
And, if you’d like to get monthly updates such as these and aren’t already on the mailing list, please [join here].
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