In the grand narrative of Web3, we have repeatedly explored decentralization, financial democracy, and interconnected value. Yet after multiple cycles of boom and bust, the industry has fallen into a subtle but deep “digital feudalism.” Logic driven by value extraction rather than value creation has not only eroded the foundation of trust but also diverted cryptocurrencies from their original mission of improving distribution efficiency and enabling inclusive finance.
Against this backdrop, the emergence of Miniverse is not merely a technological iteration — it is a social experiment about the “ownership of value.” For the first time, it translates the concept of CoFi (Community Finance) into a self-operating protocol, aiming to construct a truly sustainable universal basic income (UBI) system that can provide long-term, stable returns to users worldwide — all without relying on centralized authority, but through the precise coupling of code and algorithm.
1. Structural Crisis — Why UBI Struggles in Crypto Utopias
To understand Miniverse’s innovative model, we must first examine the systemic failures in current crypto distribution logic. The essence of UBI lies in universality and stability, yet in today’s Web3 ecosystem, both are challenged by traditional crypto paradigms, creating almost insurmountable structural barriers.
The first manifestation of this barrier is the dominance of value extraction over value creation. In most VC-driven projects, the distribution of value is fixed from the very first moment. Early privileged participants acquire near-zero-cost tokens through private sales or pre-sales, creating a “digital hierarchy” where wealth inevitably concentrates in the hands of a few. Ordinary users entering secondary markets face immense selling pressure from institutions. In such a game, promises of “stable returns” often become a guise for a Ponzi-like scheme, because the system’s underlying incentive is short-term cashing out, not long-term development.
A deeper crisis stems from the “power black box” that undermines trust. Despite decentralization being the industry’s totem, most protocols’ governance powers remain concentrated in the hands of a few. Rights to mint, withdraw liquidity, or adjust contract parameters give teams discretionary control. In crypto’s short history, countless UBI-labeled projects have ended in rug pulls because trust relied on fragile human behavior rather than immutable code. Without determinacy, a system can never uphold the ambitious vision of universal basic income, as it cannot maintain credit value amid market volatility.
Truly implementing digital-age UBI therefore requires a fully cleansed power structure, perfectly fair distribution, and a self-sustaining economy with robust internal feedback. Miniverse addresses this structural crisis through a comprehensive paradigm reset.
2. The Soul of the Model — Consensus Sovereignty Economics
Miniverse’s UBI is not traditional one-way welfare; it is a “consensus sovereignty economy” built on the CoFi protocol. Its core principle is shifting trust from vague moral judgment to precise mathematical frameworks. Through three key dimensions, it provides institutional guarantees for UBI across market cycles.
First, it replaces agent governance with code sovereignty. Miniverse executes extreme and irreversible “permanent power burn,” eliminating any possibility of human interference. It is not operated by a company or team, but functions as a self-governing protocol republic. In this context, the security and stability of UBI rely not on promises but on immutable on-chain instructions. This self-isolation of power creates the strongest possible political foundation for universal basic income.
Second, the “AM Algorithmic Central Bank” mechanism ensures bubble-free payouts. UBI stability in Miniverse comes from a dual-pool isolation model. Traditional projects often mix liquidity and reward pools, causing distributions to impact market prices. Miniverse uses Automated Maker (AM) contracts as an algorithmic central bank: profits captured from market price premiums are injected into an independent payout pool. Users’ UBI payouts are drawn from algorithmic market gains, not LP liquidity. By separating revenue from volatility, and payouts from capital, the system ensures that UBI remains stable across bull and bear cycles.
3. Value Loop — A Three-Dimensional Engine for Sustainable Returns
If code sovereignty gives Miniverse its soul, and absolute fairness solidifies its foundation, then its core value engine ensures UBI sustainability. This engine combines internal growth loops with extreme deflationary hedges, forming an unbreakable logical loop.
On the growth side, Miniverse converts the “wealth effect” into perpetual buy pressure. Through the interaction of LP mining and the U-Miner system, it creates a self-reinforcing loop. LP mining anchors MiniBTC to real assets, while U-Miners act as “buying converters,” instantly turning each USDT contribution into MiniBTC demand on DEXs. Its “reward-as-acceleration” non-inflationary strategy ensures that promotion incentives do not generate new tokens, but accelerate U-Miner exits. This forces ecosystem leaders to execute a “exit–repurchase” cycle, creating continuous endogenous buy pressure without increasing system sell pressure, turning community expansion into price support.
On the value-protection side, extreme deflation creates a “rarer as it rises” spiral. To hedge potential liquidity overflow, Miniverse enforces black-hole-level burns on both supply and circulation. Daily unclaimed outputs are destroyed, reducing supply ceilings, while LP withdrawal burns convert a portion of profits into deflationary fuel, turning every exit into value feedback for remaining participants. This mechanism endows MiniBTC with “hardened” properties, mathematically safeguarding UBI purchasing power long-term.
In sum, universal basic income — an ancient human ideal — has repeatedly failed in reality due to unfair distribution, rigid management, and lack of sustainability. In the Web3 era, Miniverse demonstrates a new possibility, powered by CoFi protocols. By encoding fairness and justice into immutable code, and returning control to every individual, a protocol republic — based on algorithmic contracts rather than leader worship — can finally stand in the digital world.