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While AI technology does increase efficiency and productivity, it threatens mass unemployment, with future jobs unlikely to offset this. New roles will not only be scarce but also require highly specialised skills, remaining out of reach for the majority.
How must we adapt to this future of widespread structural unemployment? Governments worldwide will eventually be forced to deploy universal subsidies for most of their population, which may need to be paid for by taxing revenue from AI output rather than human capital.
Universal Basic Income (UBI) is the most widely proposed future subsidy. It provides an entire population with unconditional fixed cash payments, regardless of socioeconomic factors.
It is likely that payments of UBI will utilise stablecoins or central bank digital currencies (CBDCs). These digital e-money tokens are pegged to the price of traditional fiat currencies and provide the benefits of blockchain’s low fees, transparency, immutability, accessibility and reliability.
UBI risks trapping a large proportion of the population at this basic income level, given that few jobs will be available, and individuals won’t own productive assets. This means that despite individuals having the liberty not to work, society under UBI would be far more unequal than today.
Implementation challenges are also a threat. UBI is enormously expensive, and if automation eliminates jobs, there will be fewer workers paying taxes to fund it. The world will likely need to rethink existing taxation structures to ensure wealth generated by AI can be allocated to human citizens.
Universal Basic Ownership (UBO) is a lesser-known alternative to UBI. In this case, the subsidies revolve around asset ownership rather than fixed cash payments. By giving citizens lifelong stakes in productive assets – including automated firms, AI infrastructure, and sovereign wealth funds – they see returns from economic output rather than flat transfers.
In order to provide a minimum standard of living, basic ownership can extend to essential fixed assets like homes. Unlike UBI, some subsidies can be controlled, focusing resources on essentials rather than entrusting individuals to spend freely.
Blockchains make UBO possible by enforcing ownership of these real-world assets (RWAs) through tokenisation. Each asset is represented by an on-chain token, with individuals able to verify ownership and manage these assets through digital wallets.
Unique assets are represented on-chain as non-fungible tokens (NFTs). For UBO, this includes specific AI infrastructure and revenue-generating machines. These assets are likely high value; hence, the NFTs can be fractionised, allowing individuals to own appropriately sized shares. Revenue generated by these assets is paid in crypto or stablecoins directly to owner wallets.
In November 2025, the Marshall Islands launched the world's first nationwide UBI programme with an on-chain delivery option. Citizens can opt to receive the $200 quarterly payments in stablecoins through the Stellar blockchain. This option makes distribution easier to those in the most remote islands; however, the lack of crypto literacy risks hindering adoption.
In June 2025, peaq (DePIN blockchain) and Pulsar Group launched the world's first Machine Economy Free Zone (MEFZ) in the UAE. Here, they plan to launch the world's first UBO pilot by tokenising robots and AI infrastructure as fractional NFTs on peaq's Layer-1, enabling residents to earn direct revenue shares in stablecoins. Results of this pilot will be key to UBO as proof of concept.
Blockchain offers exciting ways to distribute subsidies in a future AI-dominated economy. UBO may offer a superior option to UBI, enabling the majority to share in AI revenue and growth. The model is more cost-effective, ensuring basic needs are met by tokenising essentials and providing financial security.
Its design empowers equitable growth and remains resilient to fiat currency instability – or even its disappearance – in the distant future.