Universal Basic Income with Time-Decaying Currency: Structural Effects on Essential Labor and Long-Term Formation
Fuente:
arXiv
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| Natura: | Preprint |
| Pubblicazione: |
2026
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| _version_ | 1866911461207441408 |
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| author | Yamada, Hitoshi |
| author_facet | Yamada, Hitoshi |
| contents | Time-decaying currencies have long been discussed in economic theory as a means to discourage hoarding and promote circulation. However, their modern digital implementation as a universal basic income (UBI) mechanism raises unresolved structural questions regarding labor participation and long-term social reproduction. In this study, we analyze a dual-currency model in which a time-decaying currency is distributed exclusively as UBI, while labor income and savings are denominated in a standard currency. Through agent-based simulations, we identify the acceptance ratio of the time-decaying currency for necessities as a critical design parameter. Our results show that essential labor does not necessarily collapse under such a system. Nevertheless, beyond a threshold acceptance ratio, delayed labor participation and weakened human capital formation emerge even in the absence of material deprivation. These findings suggest that time-decaying currency can stabilize short-term living conditions while distorting long-term formation incentives, depending on system design. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2602_18714 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Universal Basic Income with Time-Decaying Currency: Structural Effects on Essential Labor and Long-Term Formation Yamada, Hitoshi Computational Engineering, Finance, and Science Time-decaying currencies have long been discussed in economic theory as a means to discourage hoarding and promote circulation. However, their modern digital implementation as a universal basic income (UBI) mechanism raises unresolved structural questions regarding labor participation and long-term social reproduction. In this study, we analyze a dual-currency model in which a time-decaying currency is distributed exclusively as UBI, while labor income and savings are denominated in a standard currency. Through agent-based simulations, we identify the acceptance ratio of the time-decaying currency for necessities as a critical design parameter. Our results show that essential labor does not necessarily collapse under such a system. Nevertheless, beyond a threshold acceptance ratio, delayed labor participation and weakened human capital formation emerge even in the absence of material deprivation. These findings suggest that time-decaying currency can stabilize short-term living conditions while distorting long-term formation incentives, depending on system design. |
| title | Universal Basic Income with Time-Decaying Currency: Structural Effects on Essential Labor and Long-Term Formation |
| topic | Computational Engineering, Finance, and Science |
| url | https://arxiv.org/abs/2602.18714 |