Specifications for first Circles deployment

Likely finalized:

Conceptional:
A “raw version” of Circles.
(1) Everyone can create an account that will start generating personalized Circles at a global fixed rate.
(2) Rate starts at ~100 units at month and increases continuously by (2s)7% per year.
(3) One account A can trust another account B - that means that all of A’s Circles balances (all types) can be exchanged at any time by anyone 1:1 with Circles generated by B.

(4) Trust relationships can be canceled at any time.

Technical:
(5) Use xDAI blockchain
(6) Use ERC 1155 to create tokens per account
(7) Use GnosisSafe for accounts

UI/UX
(8) Create simple wallet as a fork of https://xdai.io/
(9) The UI will only start to offer an option to register a new circles receiving ERC1155 token options as soon as a user has (a)3 bi-directional trust relationships and at least (b)2 EOAs registered as owner for the Safe)

Reasoning
(1)
(2)
Absolute number of units generated per time is basically not relevant since there will be no forced fixed exchange rate to any other asset. However, for a narrative it might be easier to use familiar units. The Duniter generates roughly 135€ per month per person at the unofficial exchange rate. By starting with 100 a suggested exchange rate in the area of 1:1 seems reasonable.
(2a)
In the beginning the growth-factor (7%) is fairly irrelevant since inflation is dominated by the regular new issuance. Long term this number basically defines the since of the UBI and the capability of the system to store value.
(3)
There are many suggestions to make the trust relationship more nuanced. E.g only allow a specific amount per timer; make it dependent on the number of shared connections; …
Since it is possible to cancel connections it is at a later stage possible to “upgrade” those connection buy deleting the old one and registering more complex ones.
(4)
(5) Very low transaction costs, 5 sec block time; possible to migrate to a different chain. Gas costs are low enough to sponsor them via meta-transaction with a centralized tx relay service.
Long term it might be possible that validators could directly accept Circles as gas payment or the system forks to a chain that allows that.
More infos here.
(6) A user might end up holding many different currencies. For e.g. setting allowance it makes a lot of sense to use 1155 to be able to do this with one transaction. This makes it much easier to e.g. connect to a new hub that allows more complex transitive transactions, or more complex trust relationships.
(7) Using the Gnosis Safe allows for meta-transactions (no distractions of gas payments/ gas price setting). It also allows to have multiple keys (=devices) controlling the same account without exposing the user tp private keys. (instead a new public key is just registered as an additional owner) It also allows potentially to use more complex access recovery mechanisms like using your trust graph after a time of inactivity (paralysie proof)
(8) xdai.org offers a great on-boarding experience. There is already a Gnosis Safe integration available. Eventually native Apps should be the goal but until then a browser based solution will ensure accessibility to as many people as possible.
By just opening a website in the browser everyone will be immediately be able to RECEIVE Circles.
(9)
(a)
(b) The user should have at least a second EOA registered as an owner of the Safe. One way to do this would be to have (Circles branded) versions of those Ether.cards ready. Via the web wallet the public key can be registered. In case of phone-loss the scratch card could recover the Safe.

1 Like

Open questions:

Upgradability

What can be changed: how and by whom?
E.g. New forms of trust relationship; change of issuance rate; change of “growth factor”, …