Introduction
Today we are proud to announce that Galactica.com is introducing
a dual-input governance framework powering a DAO where persistent identities' reputation is a key input into voting power calculation and
a UBI distribution model for continuous ecosystem diversification.
As reflected on many occasions in the literature we have published in our research and newsroom sections (e.g. here and here), the relationship between one's token holdings and the resulting voting power is key to understanding the distributional dynamics in a political system such as a DAO. In the case of Galactica.com, we can leverage our identity stack to have a real world human as subject in our governance framework. Humans can have reputation, a product of some data points that are deemed important in amplifying one's voice relative to the others in relation to a given matter at hand. But one's token stake is likewise important. Hence, we are introducing a system where both, one's veGNET stake ('ve' to account for lock up time) and one's reputation factor in calculating both, one's voting power, and, importantly, one's weight in the UBI distribution process. Please, refer to this paper for specification of our vision for UBI. One can read more about ve token systems for example here. More on Galactica's "ve" specification below. This proposal outlines the transition from the current GNET staking rewards to a Universal Basic Income (UBI) distribution system powered by the new gUBI token.
Economic Foundations
GNET Overview
Total Supply: 1,000,000,000 GNET
UBI Allocation: 10% (≈88 million GNET remaining for distribution)
GNET staking rewards will continue temporarily under a 12-month emission schedule, gradually phasing out as the network transitions to gUBI-based distribution.
The New gUBI Token and veGNET Mechanism
The proposal introduces gUBI (Galactica UBI token) as the new token for Universal Basic Income (UBI) rewards. This new gUBI distribution mechanism is intended to deprecate and eventually fully replace the existing GNET staking rewards. At launch, the gUBI token fund will be capitalized with the remaining GNET allocated to UBI, which amounts to approximately88 million GNET. The foundation of this new system isVote-Escrowed GNET (veGNET). Users obtain veGNET by locking their GNET tokens. The veGNET balance is determined by both the amount of GNET staked and the duration of the lock, scaling linearly up to a maximum 8x multiplier for a 4-year lock.veGNET Multipliers:
6 months: 1.0x
1 year: 2.0x
2 years: 4.0x
4 years (max): 8.0x
The veGNET balance is calculated using the formula: veGNET = GNET_sake * 8 * (lock_duration_in_days / 1461)Where 1461 days is the 4-year maximum lock, and the multiplier scales linearly. veGNET itself is non-transferable. The system includes linear penalties for early unlocking, where penalty % = time remaining / total lock time.All collected penalties are redistributed to the remaining loyal stakers proportional to their veGNET share.
The Dual Input VP/UBI System
The proposal splits reputation into two distinct metrics for different purposes: UBI Reputation (for rewards) and Governance Reputation (for voting power).
1. UBI Reputation (For Rewards)
This metric is designed toprimarily reward activity and contribution rather than capital. Formula:
UBI_Reputation = UBI_Points × logX(veGNET_balance)
Primary Factor (Activity): UBI Points, a social activity score from Claimr and elsewhere, act as a linear multiplier.
Secondary Factor (Capital): The veGNET balance is a logarithmic multiplier, resulting in diminishing returns.
Logarithm Base (X): Higher X values strengthen diminishing returns on SBT accumulation, reducing the impact of SBT farming; lower X values allow participation to scale faster with more SBTs.
With X = 10, as an example, an Archetype analysis demonstrates this: a 1000x increase in staked GNET (from a "Novice" to a "Samurai" profile) results in only an approximate 58x increase in UBI Reputation. The proposal concludes that activity (UBI Points) is the primary lever for earning gUBI rewards. Given that the zkKYC system Galactica has developed alongside other Sybil resistance metrics is for all intents and purposes guaranteeing Sybil resistance, the setup as is, is a functional implementation of core ideas described here by Vitalik and in many other pieces on quadratic voting/funding. The same applies to the voting power calculations described below.
2. Governance Reputation (For Voting Power)
This metric is designed to reward capital aligned with long-term interests but requires mandatory community participation to prevent plutocracy.Formula:Governance_Reputation = logX(Σ(SBT × Weight)) × veGNET_balance
Primary Factor (Capital): The veGNET balance acts as a linear multiplier.
Secondary Factor (Participation): The weighted sum of specific SBTs (Soul-Bound Tokens) acts as a logarithmic multiplier.
Logarithm Base (X): Higher X creates stronger anti-whale protection (more egalitarian UBI); lower X increases capital's influence. Determines whether whales with 1000× capital get 3× or 10× more UBI.
Only certain SBTs will be selected to affect governance reputation. These will be the ones that reflect contribution to the ecosystem and its parts, helping Galactica to develop and grow. Many of the partnership-related SBTs and quests are intentionally excluded from this scope. The exact list of SBTs picked for influencing the reputation is gonna be announced later.
Archetype Evaluation
* Made for X (log base) = 10, as an example
The data demonstrates clear diminishing returns in UBI reputation but linear growth in governance reputation, reflecting a fair balance between inclusivity and capital commitment.
gUBI Reward Distribution and Utility
The new gUBI token will have a total supply of 100,000,000. For 2026, 10,000,000 gUBI tokens are allocated. The amount of gUBI a user receives each month is directly proportional to their UBI Reputation at the end of the period. Regarding utility, users will be able to burn their gUBI tokens to receive underlying assets from the index pool, such as GNET.
Reward Calculation:The number of gUBI rewards distributed each period (epoch) is proportional to the total monthly emission for the current year. The amount a specific user receives is calculated as:
User Rewards for period = Total Monthly Emission × (Total Network UBI Reputation at period end / User's Avg UBI Reputation at period end)
The quantity of rewards allocated to users each month is strictly proportional to their calculated average UBI Reputation for that period.
Burning mechanics: Users are able to burn their Index tokens to receive underlying assets: GNET and others, once they're in. The formula below calculates the token allocation a user receives upon burning gUBI, which must be computed individually for each constituent token within the index pool.
Tokens to receive = (User's gUBI balance / gUBI total supply) × Index Pool's total balance in given token*All parameters are to be finalized soon. More information will be provided on the upcoming Alpha Friday.
Transition Plan
The existing GNET staking rewards, which follow a 12-month schedule, may continue for a transition period (e.g., until the end of the year or for another six months). Over time, these rewards will be deprecated and fully replaced by the new gUBI distribution mechanism. All accumulated CypherBook rewards from November 1 2025 until the gUBI mechanics are released will be added back to the gUBI pool. The October rewards have been distributed.