Can complementary local currencies with universal basic income reduce inequality?

Abstract

Encointer is a blockchain platform for local community cryptocurrencies. People in a community can come together to launch and name their own local currency. Every 41 days, there is a meetup, where they confirm each other’s personhood. Once successful, everyone gets a UBI on their cell phone wallet. The objective of the paper was to find out what the necessary conditions for Encointer are to succeed in reducing inequality. And why the approach to reduce inequality is done through a complementary currency instead of a progressive income tax.