2025-12-25 03:29:59

The Marshall Islands has truly turned the basic income plan into reality. Starting from November 26, 2025, all citizens will receive regular payments—no income requirements, no employment thresholds, just direct distribution.

Where does the funding come from? It’s generated through investment returns of the Compact Trust Fund, but there’s a cap—annual disbursements are limited to 4%. The methods of distributing the money are quite flexible—checks, bank transfers, and even blockchain. They’ve developed a digital wallet called Lomalo, which operates on the Stellar network, blending traditional finance with crypto technology.

Even more interesting is the launch of digital sovereign bonds, USDM1, which are fully pegged 1:1 with U.S. short-term government bonds, denominated in USD, and redeemable at face value. This combination seems aimed at institutionalizing the distribution of national wealth to every citizen, while managing the country’s finances through digital assets innovation.

This kind of exploration at the small country level offers valuable insights into how crypto technology can integrate into the real economy.

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FloorPriceWatcher

· 9h ago

The Marshall Islands' recent move is truly impressive, directly bringing UBI onto the chain, but that 4% cap... feels like it will be cut sooner or later. The Lomalo wallet on the Stellar network sounds promising, but I wonder how the actual transaction speed is— that's the key. This small country experiment model is indeed interesting, but whether it can be sustained long-term depends on how the Compact fund operates. It feels quite risky. USDM1 and US bonds are pegged 1:1... it's a bit like building your own reserve asset system, clever. But to be honest, the biggest challenge with UBI has never been the payout mechanism, but the subsequent inflation pressure. Can the scale of the Marshall Islands hold up? Stellar is really suitable for this kind of payment scenario—less congestion and cheaper. Honestly, small countries doing crypto experiments still have potential; it's much less constrained than big nations.

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BridgeTrustFund

· 9h ago

Damn, Marshall really dares to play around, directly combining UBI + blockchain combo punch. The pace is a bit crazy. Wait, is Lomalo based on Stellar? Why does it feel a bit like a copy of a certain project... Small countries are actually leading the way, while big countries are still researching. Isn't that ironic? USDM1's design is quite clever, but the real test is whether it can be implemented. This kind of model, to avoid abuse, depends on execution power. Looking good on paper doesn't mean much. I'm a bit curious, will this money eventually flow all to exchanges haha. But on the other hand, this is indeed a real application of crypto in the real economy, not just hype.

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SleepyArbCat

· 9h ago

Marshall's recent move is quite aggressive... directly using Stellar for UBI, paired with USDM1 bonds, is this an attempt to crypto-ify the entire national financial system? Hold on, let me get clear—an annual cap of 4%... what does that mean? The principal needs to be over 100 billion to sustain the basic disbursement level for a small country, right? Does the Compact trust fund really have that much in reserve? By the way, supporting everything from checks, bank transfers to on-chain wallets, this payment layer design is indeed flexible. Just need to think through the gas fees—although Stellar network fees are cheap, they’re not free. I think this is more like a financial innovation experiment. Small countries can run low-cost trials. If they can really establish a closed loop of UBI + sovereign bonds + on-chain payments... wow, that would be something. Just one question: how is the liquidity of USDM1 guaranteed? Being 1:1 pegged to US Treasuries sounds appealing, but who’s taking orders in the secondary market?

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LightningAllInHero

· 9h ago

Marshall's recent move is really brilliant, directly integrating UBI into the blockchain. Wait, is the 4% cap enough? It still seems to depend on the size of the Compact Trust Fund. Lomalo wallet based on Stellar? That means it's truly linked to the US dollar system. The USDM1 bond design is quite interesting, essentially opening a window for financial innovation for small countries. But on the other hand, can this model be replicated in other countries? It really depends on political stability, environmental policies, and financial infrastructure. Wow, directly distributing money with the option to claim it on-chain—this is a prime example of Web3 empowering the real economy. Genius or crazy? We'll know in two years.

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GasWaster

· 9h ago

Marshall's recent move is quite interesting—directly issuing money via blockchain, which is much more transparent than the welfare systems of some major countries. Wait, running such high-level transactions on the Stellar network might be a bit overkill... But on the other hand, it definitely saves middlemen. If this can truly operate stably, will other small island nations follow suit? Just imagine a scenario where the entire world is issuing money on the blockchain.

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AirdropNinja

· 9h ago

Marshall Islands' recent move is truly impressive. Directly distributing money and allowing blockchain withdrawals—this is what real crypto adoption looks like. Some major countries might need to rethink their welfare systems now; even small island nations have figured it out. Stellar network paired with digital bonds—feels like Marshall Islands is conducting an experimental sample for the world. But is the 4% cap too conservative... Hopefully it can last a few years. Real UBI exists, which is worth much more than all the empty promises. I'm a bit looking forward to the follow-up data. If this model really works, it would be incredible. Linking blockchain wallets with national welfare—this idea is truly innovative.

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MelonField

· 9h ago

Damn, is Marshall Islands really going all-in this time? Basic income system + blockchain wallets—this combo is pretty wild. Marshall Islands, this small country, is starting to innovate in finance. Gotta say, their ideas are quite forward-thinking. Distributing money directly without work requirements—if this really happens, it would be incredible. It feels like the entire social structure might need a complete overhaul. The Stellar network developing digital wallets—that's like trying to bring the country's financial system onto the blockchain. Small countries definitely have an advantage. USDM1 bonds are pegged 1:1 with U.S. Treasuries—are they trying to prove their creditworthiness? Or is it a way to raise funds indirectly? Hard to see through. Wait, where does this money come from? The annual cap is 4%... how much can they actually distribute? Can it support people's livelihoods? Small countries experimenting with this kind of thing is definitely interesting, but can it be scaled? Or is it only feasible in places like Marshall Islands? The fusion of crypto and national sovereignty sounds very Web3, but how difficult is it really to implement?

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