Circles

Decentralized UBI Currency

A decentralized Universal Basic Income system where each user mints their own personal currency, with trust relationships enabling transitive exchange between participants.

Type	Decentralized UBI Currency
Region	Global
Status	Active
Links	Website Whitepaper X / Twitter

M69 Score

M69 Alignment3.4

Partially aligned

1.02.03.04.05.0

Monetary Sovereignty3.6

Issuance (3x) + Stability (2x) + Fiat Indep. (2x)

Civilizational Durability2.6

Sovereignty + Governance + Resilience

Universal Adoption3.6

Traction (2x) + Inclusivity

Iss Mod3x

3.8

Stability2x

2.5

Fia Ind & Int2x

4.3

Traction2x

3.2

Sovereignty

3.0

Governance

2.3

Resilience

2.4

Inclusivity

4.5

Scored against the Money2069 Manifesto — see methodology. Higher = more aligned.

Key Findings

Strongest categoriesInclusivity (4.5) and Fiat Independence (4.3) — Circles' UBI + demurrage design is one of the most philosophically M69-aligned issuance models assessed. 1 CRC/hour to every verified human, 7% annual demurrage, zero fiat reserves, sovereign unit of account.

Standout featureGroup currencies (v2) natively support local currency composability within a shared protocol — directly addressing the M69 Commandment "Global Standard, Local Expression."

Activity-linked stability (SPS 1.7)Supply scales with active users (issuance) and contracts with inactivity (demurrage + 14-day cutoff). This is a structural spending power stability mechanism, though it lacks an explicit price target, basket, or measurement of deviation.

Governance gap (2.3)Informal, founder-dependent (Martin Koppelmann / Gnosis team), no Circles-specific governance process, no constitution, no immutability guarantees for monetary parameters.

Resilience concern (2.4)Young v2 launch (May 2025), untested under economic stress, single-chain dependency on Gnosis Chain. The Berlin v1 pilot was deemed a failure (90% of CRC cashed out to fiat), though the Bali pilot showed stronger community adoption.

The big takeawayCircles v2 represents one of the most conceptually M69-aligned monetary experiments in existence — debt-free UBI issuance, demurrage anti-concentration, fiat independence by design. But its practical impact (~10K users), governance immaturity, and untested resilience keep it in the "partially aligned" range. The monetary design is strong; the institutional and technical scaffolding needs to mature.

Detailed Rating Breakdown

Framework v0.2-alpha · Rated 2026-04-12

Circles v2 is a people-powered money system built on Gnosis Chain that distributes money creation rights to individuals rather than centralized institutions. Each verified human receives 1 CRC per hour as a form of universal basic income, with a 7% annual demurrage mechanism to encourage circulation and prevent wealth concentration. The v2 upgrade, launched on May 21, 2025, introduced group currencies (ERC-1155 standard), improved trust mechanics with binary trust and expiry dates, the Metri Wallet (a PWA with email signup and passkeys), and integration with GnosisPay (Visa-backed card) and CoW Swap for liquidity. From an M69 alignment perspective, Circles v2 demonstrates strong alignment in its issuance model -- debt-free, permissionless personal currency issuance tied to human existence rather than debt or collateral -- and in inclusivity through its UBI design, demurrage-based anti-concentration, and low barriers to entry. The group currencies feature is a standout for local currency composability, as it natively supports community-level monetary expression within a shared protocol. However, the project faces significant challenges: spending power stability remains weak — while Circles' activity-linked issuance and demurrage provide a structural supply adjustment mechanism (supply grows with active users, contracts via demurrage and inactivity cutoff), there is no explicit price target, basket, or measurement of purchasing power deviation, traction remains modest with approximately 10,000 active users as of November 2025, governance is informal and heavily dependent on Martin Koppelmann and the Gnosis ecosystem, and the protocol's resilience is untested under serious economic stress. The project represents one of the most philosophically M69-aligned monetary experiments in existence, but its practical impact and institutional maturity remain limited.

Issuance Model3x

3.8

Code	Question	Score
IM-01	Is issuance permissionless?Anyone can register and begin minting 1 CRC/hour after receiving trust from 3 existing users. No KYC or government ID required. The trust requirement is a Sybil-resistance mechanism, not discretionary gatekeeping. Existing users sponsor newcomers by paying 96 CRC. This is open but requires a non-trivial on-chain social action. [1][2]	4
IM-02	Is new supply created through debt?Issuance is entirely debt-free. CRC tokens are minted by individual humans at a fixed rate of 1 CRC/hour with no borrowing, collateral, or repayment obligation. This is pure seigniorage distributed equally to individuals. [1][2]	5
IM-03	Is issuance tied to measurable real-world economic activity?Issuance is tied to human existence (1 CRC/hour per verified human) rather than any real-world economic index, labor output, or commodity production. It is a UBI model based on personhood, not economic activity. No oracle or index links supply to the real economy. [1][2]	1
IM-04	Does the issuance model have a supply cap or hard ceiling?Supply expands continuously at 1 CRC/hour per user with no hard cap. However, 7% annual demurrage provides automatic contraction of existing balances, creating a soft equilibrium at approximately 125,143 CRC per account after ~14 years. The 14-day minting window provides a circuit breaker. This is elastic with natural bounds. [1][2]	4
IM-05	Can supply contract (burn/redemption) as well as expand?The 7% annual demurrage provides automatic, continuous contraction of all existing balances built into the ERC-1155 token standard at the protocol level. Organizations face unmitigated demurrage since they cannot mint. Users can also burn tokens when redeeming group currencies. Contraction is automatic and on-chain. [1][2]	5

Spending Power Stability2x

2.5

Code	Question	Score
SPS-01	What mechanism does the protocol use to target spending power stability?Circles uses an activity-linked supply mechanism rather than a price-targeting peg. Money supply scales directly with active verified humans (1 CRC/hour per person) — as more people join and transact, supply grows to match expected economic activity. When users become inactive, issuance stops after 14 days and 7% annual demurrage continuously contracts idle balances. This creates an algorithmic, on-chain supply adjustment tied to real economic participation, though it does not target a specific price index. [1][2]	3
SPS-02	What benchmark is used to measure spending power?Circles v2 uses an activity-linked supply mechanism where each verified participant receives a fixed issuance rate (1 CRC per hour) with 7% annual demurrage. This structurally anchors value to productive capacity and real human activity rather than any external price reference. The supply mechanism is tied to real labor/activity (issuance per active participant + demurrage). [1][2]	4
SPS-03	How transparent and verifiable is the stability measurement?There is no stability measurement to verify. The issuance rate (1 CRC/hour) and demurrage rate (7%/year) are enforced on-chain and fully transparent, but these are monetary parameters, not stability mechanisms. [1][2]	1
SPS-04	What is the protocol's historical deviation from its stability target?There is no stability target. CRC is designed as a freely-valued personal currency whose purchasing power is determined by trust networks. Demurrage means nominal value declines by design. No track record to assess since there is no target to deviate from. [1][2]	1
SPS-05	Does the protocol distinguish between short-term volatility and long-term purchasing power drift?The protocol implicitly addresses long-term purchasing power drift through demurrage (preventing deflationary hoarding and wealth concentration) and activity-linked issuance (supply grows/contracts with economic participation). However, no explicit short-term volatility dampening mechanism exists. The distinction is structural rather than intentional — demurrage operates on a different timescale than daily price fluctuations. [1][2]	2
SPS-06	Is the stability mechanism accessible globally?Circles v2 is globally accessible on Gnosis Chain. Anyone can join, but meaningful participation requires building a trust network with other verified humans. The trust graph requirement creates some practical barriers but no geographic restrictions exist. [1][2]	4

Fiat Independence & Interoperability2x

4.3

Code	Question	Score
FI-01	What is the protocol's unit of account?CRC is a fully sovereign unit of account defined independently of any fiat currency. 1 CRC = 1 hour of human existence. It is not pegged to USD, EUR, or any state index. The unit is entirely self-referential and fiat-independent. [1][2]	5
FI-02	What is the fiat composition of the protocol's collateral or reserves?CRC has no collateral or reserves. Personal currencies are minted from nothing -- pure seigniorage. Group currencies are collateralized by personal CRC tokens, not fiat. Optional Balancer liquidity pools may pair with stablecoins (which are fiat-backed), but this is user-initiated, not protocol-mandated. Zero fiat in core reserves. [1][2]	5
FI-03	Does the protocol depend on fiat banking infrastructure to function?The core protocol runs entirely on-chain on Gnosis Chain with no banking dependency. GnosisPay Visa integration provides an optional fiat off-ramp but is not required for core protocol function. The protocol can operate entirely without banking relationships. [1][2]	4
FI-04	Are the protocol's price feeds and oracles fiat-denominated?The protocol does not use price feeds or oracles. CRC is not pegged to any external reference. Value is determined by trust relationships and group currency exchange dynamics. No oracle system exists within the Circles protocol itself. [1][2]	5
FI-05	What happens to the protocol if the primary fiat currency it references collapses or depegs?The protocol references no fiat currency. A fiat collapse would not affect core protocol function. The only impact would be on optional periphery: GnosisPay integration and any stablecoin-backed liquidity pools for group currencies. Core minting, trust, and transfers would continue unaffected. [1][2]	4
FI-06	Does the project have a credible transition path from fiat-dominated adoption to fiat-independent operation?Circles is already designed as fiat-independent from inception. There is no fiat dependency to transition away from. The GnosisPay integration serves as a bridge to the existing economy but is an on-ramp, not a core dependency. However, the economic viability of CRC without fiat reference points remains unproven. [1][2]	4
FI-07	Can local or sectoral currencies be denominated in or settle against this currency?This is a core v2 feature. Group currencies allow communities to create shared ERC-20 tokens backed by pooled personal CRC. Groups can set custom minting policies, restrict usage to specific vendors or sectors, and create sub-currencies for specific purposes. The Bali pilot used localized community currencies. Multiple groups can operate independently on the same protocol. [1][2][3]	4
FI-08	Does the protocol define open standards for interoperability with other monetary systems?Interoperability is achieved through generic crypto infrastructure: ERC-1155 and ERC-20 standards, Balancer AMMs, CoW Swap. The Circles SDK provides developer tools. However, there is no Circles-specific open standard for cross-system monetary settlement or exchange rate discovery. Interoperability is possible but not via a purpose-built monetary protocol. [1][2]	3

Traction2x

3.2

Code	Question	Score
TR-01	Is the project still active?Fully active. Circles v2 launched May 21, 2025 on Gnosis Chain. Active development continues with Circles SDK, Metri wallet, mini-apps from Open Internet Club, and integration with GnosisPay. Gnosis 3.0 strategy prominently features Circles. [1][2]	5
TR-02	How long has the project been in existence?The Circles concept was first presented by Martin Koppelmann in February 2016. V1 launched on xDai on October 16, 2020. V2 launched May 21, 2025. The project has existed for approximately 6 years since v1 launch, or 10 years since conceptual origin. Counting from v1 launch: 5-10 years. [1][2]	4
TR-03	How many active users does the project have?Circles SDK v1 crossed 10,000 active humans by November 2025. V1 had approximately 100,000-200,000 total accounts historically, though most were inactive. Current active v2 users are approximately 10,000. This falls in the 1K-10K range. [1][2]	2
TR-04	How many businesses or organizations accept the project's currency?The Berlin v1 pilot had approximately 20 businesses accepting CRC. The Bali pilot had local vendors accepting CRC. V2 promises a marketplace feature and GnosisPay Visa integration would allow spending anywhere Visa is accepted, but direct merchant acceptance of CRC in v2 is undocumented beyond early pilots. Estimated at 10-100 businesses. [1][2][3]	2
TR-05	Is the currency used as a unit of account?Within the Circles community, CRC is used as a unit of account for trust relationships (1:1 exchange via trust). The Bali pilot saw over 1 million CRC exchanged for real goods. However, prices are not natively denominated in CRC by merchants -- goods are typically priced in fiat with CRC as payment method. Limited unit-of-account function within defined communities. [1][2][3]	3
TR-06	Is the founder or core team still actively working on the project?Martin Koppelmann (Gnosis co-founder) remains actively involved and publicly champions Circles. The project is a core part of Gnosis 3.0 strategy. Active development team working on SDK, Metri wallet, and protocol improvements. Strong founder continuity. [1][2]	5
TR-07	What partner organizations or institutions support or integrate the project?Key partners include Gnosis/GnosisDAO (primary backer), GnosisPay (Visa integration), Safe (wallet infrastructure), CoW Swap (DEX), Balancer (AMMs), Circles Coop (now concluded), Indonesia's BRIN (Bali research), Open Internet Club, and the Circles Indonesia community. This is 5-10 meaningful partners. [1][2][3]	4
TR-08	Is the project covered or recognized by credible external sources?Covered by The Block, Blockworks, CoinDesk, Chainwire, and other crypto media. A peer-reviewed academic paper was published in Frontiers in Blockchain (2024). Research conducted by Indonesia's BRIN. Referenced in basic income research. This represents academic and significant media coverage. [1][2][3]	4
TR-09	Is adoption organic -- not dependent on subsidies, incentives, or mandates?Mixed. The Bali pilot showed genuine community interest (97% enthusiasm in surveys). However, the Berlin pilot's subsidy program became an exit ramp with 90% of CRC cashed to EUR. V2 offers CRC minting as a free UBI incentive to attract users. Invitation rewards (earning CRC by inviting) create incentive-driven growth alongside organic adoption. [1][2][3]	3
TR-10	What is the growth trend over the past 12 months?V2 launched in May 2025 and reached 10,000 active users by November 2025. Mini-apps being developed by Open Internet Club. GnosisPay integration expanding. Moderate growth from zero to 10K in 6 months since v2 launch. [1][2]	3
TR-11	Does the project have a coherent narrative and cultural identity that drives long-term commitment?Strong founding narrative rooted in UBI philosophy, human-centric money, and trust-based economics. Koppelmann has championed this vision since 2016. The tagline "Money, Reimagined" and "money for a multipolar world" convey clear mission identity. The trust graph mechanic is both functional and narrative-building. Community in Bali showed genuine cultural identification. However, overall community is still developing beyond the Gnosis ecosystem. [1][2][3]	4

Sovereignty

3.0

Code	Question	Score
SO-01	Can any single entity shut down the project?Circles runs on Gnosis Chain, which is a separate L1 blockchain. However, Gnosis Chain has a relatively small validator set compared to Ethereum. Martin Koppelmann and Gnosis Ltd have outsized influence. The smart contracts on Gnosis Chain are not easily shut down, but the Gnosis ecosystem itself is the critical dependency. A coordinated attack on Gnosis Chain or a decision by Gnosis leadership could significantly disrupt operations, though not permanently destroy the protocol since contracts are deployed and code is open-source. [1][2]	3
SO-02	Is the project's core infrastructure permissionless and self-hostable?Fully open-source under AGPL-3.0. Smart contracts are on Gnosis Chain. The Circles SDK, Pathfinder, and Nethermind plugin are all open-source. Anyone can deploy their own front-end or interact directly with the contracts. However, it depends on Gnosis Chain specifically, which is permissioned infrastructure (specific L1). [1][2]	3
SO-03	Is the project subject to the jurisdiction of a single nation-state?The Circles Coop was registered in Berlin, Germany. Gnosis Ltd operates from multiple jurisdictions. The protocol itself is on-chain and permissionless. However, the primary organizational entities and leadership are concentrated in the EU/Germany. The Bali community provides some jurisdictional distribution. [1][2]	3
SO-04	Does the project control or custody user funds?Fully non-custodial. Users hold their own keys via the Metri wallet (built on Safe smart accounts). Personal CRC tokens are minted to and held in user-controlled wallets. No intermediary custodies funds at any point. GnosisPay integration is non-custodial. [1][2]	5
SO-05	Is the project resilient to key-person risk?Martin Koppelmann is the primary visionary and champion. The Gnosis ecosystem provides institutional backing, but Koppelmann's departure would significantly impact the project's direction and momentum. The Circles Coop already ceased operations. Knowledge is partially distributed through open-source code and the Gnosis team, but strategic leadership is concentrated. [1][2]	2
SO-06	Does the project depend on any third-party service that could be revoked?Critical dependency on Gnosis Chain as the L1 blockchain. Also depends on the Circles Nethermind plugin for indexing and the Pathfinder for computing trust paths. While alternatives could theoretically be built (open-source code), migration from Gnosis Chain would be highly disruptive. GnosisPay and CoW Swap are optional but important ecosystem components. [1][2]	2
SO-07	Can the project be censored -- can specific users or transactions be blocked?No blacklist or freeze capability exists in the Circles smart contracts. Transactions flow through the trust graph -- if you have trust connections, you can transact. The protocol level has no censorship capability. However, front-ends (Metri wallet) could theoretically filter users, though they are replaceable. Gnosis Chain validators could theoretically censor transactions. [1][2]	4
SO-08	Does the protocol protect transaction privacy as a monetary right?Circles operates on Gnosis Chain, a public blockchain. All transactions, trust relationships, and token transfers are publicly visible. The trust graph reveals social connections. No privacy features exist. Standard pseudonymous blockchain privacy only -- addresses are not linked to identities by default, but the trust graph and invitation mechanism create social mapping. [1][2]	3
SO-09	Does the technology enforce the project's monetary rules such that governance cannot silently override them?Core monetary rules (1 CRC/hour issuance, 7% demurrage, trust mechanics) are enforced by smart contracts on Gnosis Chain. The contracts are open-source under AGPL-3.0. The Hub contract manages all minting. However, there is no documentation about immutability or upgrade mechanisms. The use of "Mastercopy" proxy patterns suggests contracts may be upgradeable. No documented time-lock or governance process for contract changes. [1][2]	3

Governance

2.3

Code	Question	Score
GO-01	How are decisions about the project made?Decisions are made primarily by Martin Koppelmann and the Gnosis core team. The Circles Coop had cooperative governance but ceased operations. GnosisDAO governance exists for Gnosis ecosystem-level decisions (e.g., GIP-88 approved 1.7M EUR for Circles liquidity). No formalized governance process specific to the Circles protocol itself is documented. [1][2]	2
GO-02	Who has voting or decision-making power, and how is that power distributed?GnosisDAO has voting on ecosystem-level decisions affecting Circles (GNO token voting). However, Circles protocol-specific governance has no formal voting mechanism. Decision power is concentrated in the Gnosis/Koppelmann team for protocol development. The Circles Coop had cooperative decision-making but is defunct. [1][2]	2
GO-03	Is the governance process -- and the monetary mechanism itself -- transparent and publicly auditable?The monetary mechanism (smart contracts) is fully open-source and on-chain, making it auditable. GnosisDAO governance proceedings are publicly documented. However, Circles-specific development decisions happen through Gnosis internal processes that are not fully transparent. The codebase is open and auditable on GitHub with 700+ commits. [1][2][3]	3
GO-04	Can governance be captured by a small group or hostile actor?Governance is already effectively concentrated in the Gnosis team. There is no decentralized governance for the Circles protocol specifically. GnosisDAO governance exists but is standard token voting (GNO). The GnosisDAO governance vote about governance stewardship saw reasonable participation (158% of quorum), but this governs the DAO, not Circles specifically. [1][2]	2
GO-05	How are upgrades and changes to the protocol or project proposed and executed?No formal proposal process for Circles protocol changes is documented. GnosisDAO has a formal governance process for ecosystem-level decisions. Circles protocol upgrades appear to be managed by the core development team. The forum at forum.aboutcircles.com exists for community discussion but has no binding governance power documented. [1][2]	2
GO-06	Is there a separation between governance over monetary policy and governance over operational decisions?No documented separation exists. The core monetary parameters (1 CRC/hour, 7% demurrage) are enforced by smart contracts, providing de facto separation since changing them would require contract upgrades. However, no formal governance structure distinguishes between monetary and operational governance. [1][2]	3
GO-07	Does the project have a constitution, charter, or set of immutable principles?No written constitution or immutable charter exists. The project has stated values (UBI, human-centric money, trust-based economics) articulated in blog posts, the whitepaper, and documentation, but these are not formally enshrined or protected from override. The Circles Coop had bylaws but the coop is defunct. [1][2][3]	2
GO-08	Can the project's issuance rules be changed, and are monetary policy changes subject to stronger constraints than operational changes?Issuance rules (1 CRC/hour, 7% demurrage) are enforced by deployed smart contracts. The Mastercopy proxy pattern in v2 contracts suggests potential upgradeability, but no documented governance process exists for changing these parameters. No constitutional protection, no time-lock, no supermajority requirement is documented. The forum discussion mentions potential "hardfork capabilities" suggesting changes are possible. [1][2]	3

Resilience

2.4

Code	Question	Score
RE-01	Has the project survived a major crisis or adversarial event?The Berlin v1 pilot was deemed a failure (businesses cashed out 90% of CRC to EUR). The Circles Coop ceased operations. V2 is a fresh start following these setbacks. The protocol itself never experienced a technical exploit or mechanism failure. However, the v1 economic model failed to create sustainable local circulation. V2 has not yet faced any major stress test since its May 2025 launch. [1][2][3]	2
RE-02	Does the project have redundancy in its critical infrastructure?Gnosis Chain provides some validator redundancy. The Circles contracts are deployed on-chain. However, the Pathfinder (for trust path computation) and the Nethermind plugin are single-provider services. The Metri wallet is the primary front-end with no documented alternatives. Profile data relies on IPFS for some redundancy. [1][2]	3
RE-03	Can the project recover from a catastrophic failure?All contract code is open-source (AGPL-3.0). Smart contract state is on Gnosis Chain. Trust graph and token balances are on-chain. A competent team could theoretically rebuild using the open-source code and on-chain data. However, no formal disaster recovery plan is documented. Recovery would depend on Gnosis Chain data availability. [1][2]	3
RE-04	Is the project's design simple enough to be maintained and understood long-term?The core concept is elegantly simple: 1 CRC/hour per person, 7% demurrage, trust-based exchange. This can be explained in a paragraph. However, the implementation across 9 smart contracts with proxy patterns, ERC-1155, group currencies, vaults, and treasury contracts adds meaningful complexity. The SDK and Pathfinder add additional layers. [1][2]	3
RE-05	Is the project dependent on a specific technology that could become obsolete?Dependent on Gnosis Chain, which is an EVM-compatible blockchain with a smaller ecosystem than Ethereum. The ERC-1155 and Solidity stack are widely supported. Migration to another EVM chain is theoretically possible but not documented. Gnosis Chain is a going concern but not as widely supported as Ethereum mainnet. [1][2]	3
RE-06	How does the project handle economic stress (bank runs, liquidity crises, collateral crashes, inflation/deflation shocks)?Demurrage provides a built-in mechanism to prevent hoarding, which somewhat mitigates bank-run dynamics. Group currencies with Balancer pools provide some liquidity infrastructure. However, there are no explicit circuit breakers, no dynamic parameters, and no formal stress testing. The Berlin pilot showed the economic model was vulnerable to exit-to-fiat behavior. V2 has not been tested under economic stress. [1][2][3]	2
RE-07	Does the project have sustainable funding for long-term maintenance?Funded through GnosisDAO treasury. GIP-88 seeded Circles with 1.7M EUR. GnosisDAO allocated up to 1.5M USD annually for ecosystem liquidity including Circles. GnosisDAO acquired HQ.xyz for $7-8.95M as part of Gnosis 3.0 strategy. Circles is a strategic priority for Gnosis. However, funding depends on GnosisDAO continued support, not self-sustaining protocol fees. [1][2]	3
RE-08	Can the system operate across extreme latency, disconnected networks, and multi-century timescales?The protocol assumes standard blockchain connectivity on Gnosis Chain. It cannot operate in disconnected networks or with extreme latency. The EVM/Solidity stack is current-era technology. However, the core concept (individual currency issuance with demurrage) is technology-agnostic and could be re-implemented. No deep-time design consideration is documented. [1][2]	2
RE-09	Is the system designed for a world where AI agents are primary economic actors?The protocol's smart contracts can be interacted with programmatically via the Circles SDK. AI agents could theoretically hold and transact CRC through standard smart contract interfaces. However, the trust-based Sybil resistance mechanism requires human verification (trust from 3 existing users), creating a human-specific onboarding barrier. The protocol was not specifically designed for machine participants. [1][2]	3

Inclusivity

4.5

Code	Question	Score
IN-01	Can anyone in the world participate regardless of nationality, wealth, or status?Open to anyone who can receive trust from 3 existing users. No nationality restriction, no wealth requirement, no credit check. The only barrier is having internet access, a device, and knowing 3 existing users. The invitation-based model could theoretically exclude isolated individuals, but existing users pay the onboarding cost (96 CRC). The Bali deployment shows the model works in developing countries. [1][2][3]	4
IN-02	What is the minimum cost to start using the project?Zero cost for the user. Existing users pay 96 CRC (earned for free through minting) to invite new members. Invitees receive 48 CRC upon joining. Gnosis Chain has negligible gas fees (sub-cent). No minimum balance required. The Metri wallet is a free PWA requiring only a browser. [1][2]	5
IN-03	Does the project actively serve underbanked or financially excluded populations?Designed specifically for financial inclusion. The Bali pilot targets underbanked rural communities in Indonesia, partnering with traditional Banjar governance structures and Indonesia's BRIN research agency. 494 survey respondents in Bali expressed 97% enthusiasm. The UBI model is inherently designed for financially excluded populations. Over 1,500 participants in the Bali pilot exchanged 1M+ CRC for real goods. [1][2][3]	5
IN-04	Does the project distribute economic benefits -- including seigniorage -- broadly, or concentrate them among insiders?Seigniorage is distributed equally to all participants: every human mints 1 CRC/hour. No insider advantage in issuance. No founder allocation, no VC token, no preferential treatment. Organizations cannot mint at all, so they face net losses from demurrage. The demurrage mechanism (7%) redistributes value from holders to minters. Economic benefits flow to participants, not insiders. [1][2]	5
IN-05	Does the project treat all participants equally under the same rules?Identical rules for every participant. Every human gets 1 CRC/hour. Same demurrage rate for everyone. Same trust mechanics. No tiered access, no preferential rates. Organizations are treated differently (cannot mint, only receive demurrage) but this is by design to prevent gaming. The invitation cost (96 CRC) creates a small barrier but is paid in the protocol's own currency which is freely minted. [1][2]	5
IN-06	Does the project require identity documentation or surveillance to participate?No government ID, no KYC, no biometric verification required. Identity is established through social trust (3 existing users must vouch). The Metri wallet uses email signup and passkeys, which is a light identity requirement. The trust graph creates a social mapping that is publicly visible on-chain. Pseudonymous participation is possible but social connections are visible. [1][2]	3
IN-07	Does the project have mechanisms to prevent wealth concentration over time?Demurrage (7% annual) is an explicit anti-concentration mechanism. It structurally prevents wealth accumulation by decaying all balances continuously. Combined with equal issuance (1 CRC/hour per person), the system converges toward equality over time (~125K CRC equilibrium per account). This is a textbook example of structural wealth concentration prevention through UBI + demurrage. [1][2]	5

Frequently Asked Questions

What is Circles (v2) and what problem does it solve?

How is money created in Circles (v2)?

Anyone can register and begin minting 1 CRC/hour after receiving trust from 3 existing users. No KYC or government ID required. The trust requirement is a Sybil-resistance mechanism, not discretionary gatekeeping.

How does Circles (v2) maintain stable spending power?

Circles uses an activity-linked supply mechanism rather than a price-targeting peg. Money supply scales directly with active verified humans (1 CRC/hour per person) — as more people join and transact, supply grows to match expected economic activity. When users become inactive, issuance stops after 14 days and 7% annual demurrage continuously contracts idle balances.

Is Circles (v2) independent from fiat currencies?

CRC is a fully sovereign unit of account defined independently of any fiat currency. 1 CRC = 1 hour of human existence. It is not pegged to USD, EUR, or any state index.

Who controls Circles (v2) and can it be shut down?

Circles runs on Gnosis Chain, which is a separate L1 blockchain. However, Gnosis Chain has a relatively small validator set compared to Ethereum. Martin Koppelmann and Gnosis Ltd have outsized influence.

How widely adopted is Circles (v2) today?

Circles SDK v1 crossed 10,000 active humans by November 2025. V1 had approximately 100,000-200,000 total accounts historically, though most were inactive. Current active v2 users are approximately 10,000.

Is Circles (v2) still active and growing?

Fully active. Circles v2 launched May 21, 2025 on Gnosis Chain. Active development continues with Circles SDK, Metri wallet, mini-apps from Open Internet Club, and integration with GnosisPay.

What are the main risks or weaknesses of Circles (v2)?

Weakest category: Governance (2.3).

What makes Circles (v2) unique from an M69 perspective?

Strongest categories: Inclusivity (4.5) and Fiat Independence (4.3) — Circles' UBI + demurrage design is one of the most philosophically M69-aligned issuance models assessed. 1 CRC/hour to every verified human, 7% annual demurrage, zero fiat reserves, sovereign unit of account.

How is Circles (v2)'s M69 Score calculated?

Circles (v2) scores 3.4/5.0 overall. Pillar scores: Monetary Sovereignty 3.6, Civilizational Durability 2.6, Universal Adoption 3.6. Strongest: Inclusivity (4.5). Weakest: Governance (2.3).