Most recently launched cryptocurrency projects are focused on developed markets, yet some in the blockchain space have begun to discover the potential for unlocking economic growth to those markets that are currently restricted by geographical boundaries.
What Is Project UBU?
To this end, a group of South African businessmen recently unveiled Project UBU (Universal Basic Unit), a cryptocurrency payment project based in South Africa which aims to target the developing world.
With a heavy-hitter team lead by Bridge Capital’s Dudley Baylis, Project UBU is bringing its experience to bear on the development of blockchain technology. The team also includes former Vox Telecom CEO Douglas Reed, Tuluntulu CCO Justin McCarthy, and former Anglo American and Altech CTO Steven Sidley.
Using Tokens To Escape The Poverty Index
Essentially, Project UBU is being developed with the aim of providing participants with 100 cryptocurrency units (UBUs) per day. Over time, the team is hoping to have the value of their tokens appreciate enough that their value is equivalent of a few US dollars. While some observers may regard this idea as small potatoes, for those living in poverty stricken countries this currency holds the potential to exceed the current poverty index and substantially raise their standard of living.
The team plans for the currency to be distributed to all of the world’s individuals at no cost, giving these individuals the means to exchange the currency for goods and services. The hope is that this will in turn create the world’s first decentralized currency that primarily benefits people who are currently resting at the bottom of the economic pyramid.
Vendor Engagement And Cost Reductions
By engaging with vendors in developing countries, UBU intends to help them increase sales, improve market share, and/or reduce costs. This has the effect of expanding the potential network effect of the currency, and helping to speed up and broaden the base of user adoption.
UBU also has a plan for helping the UBU tokens to realize value. Their approach will be multi-pronged and will combine all the traditional routes that underpin most currencies’ value, including exchange listing. However, in terms of developing their vendor strategy, in the earliest phases of the project, they are seeking to engage with innovators and visionaries. By gaining the support of these people, UBU plans to build up its base and provide momentum before the mainstream vendors will come on board.
Because of the nature of the distribution, in which tokens will be widely distributed to all individuals in the world, one of the value propositions of the UBU platform will be the marketing aspects. Once millions of UBU citizens with wallets full of UBUs exist, they will then require an outlet that's unique. Vendors and suppliers will then be able to attract new customers by supporting the project and accepting UBUs.
UBU Citizens, Token Offering Contributors
For UBU citizens, as the company calls them, another example would be to sell coupons or vouchers which would enable the consumer to pay partially in UBUs. Therefore, the value for the vendor will be realized as they find it significantly cheaper and easier to reach a new market. This, of course, also creates value for UBU citizens.
Project UBU Conclusion
The second phase of Project UBU’s initial token offering is already underway, and will be closing on the 20th of October. A third phase will follow, closing on November 3rd, with distribution occurring on April 20th. Investors are advised to take a look at the project’s white paper for more information on Project UBU’s plan to unlock the dormant value of those left out of the traditional economy.