Second Life/High Fidelity founder Philip Rosedale just published a really interesting blog post that brings his long experience with virtual economies and virtual currencies to the very real idea of a Universal Basic Income -- or what Presidential candidate Andrew Yang calls the Freedom Dividend.

"I think Yang is great and I'd love to see him get elected," Philip tells me. So his post delves into the challenges of putting Yang's plan to give $1000 to every American adult per month into practice. Rosedale's key idea -- eliminate the fiscal middle man of banks:

Most people (who aren’t economists) naturally assume that [the Freedom Dividend] would be very hard because… who would cover the bill to give away all this money? It has to come from somewhere, right? The actual answer is more complicated: when an economy is growing (meaning people are making and selling more and more valuable goods and services over time), the government actually needs to print more money, so that the value of the dollar remains stable. But where does this newly printed money go? Mostly in the USA it gets loaned to Big Banks, and is more generally a tool that governments can use to to their own advantage. But a more direct (and democratic) approach would be to simply give newly printed money out equally to all citizens, which can very substantially offset the cost of basic income.

"As US President," Philip expands to me in e-mail, "I'd work with the Federal Reserve to change monetary policy to redirect funds to citizens that were originally going to be loaned to banks... That alone is something like $1 trillion per year. Plus, any gains in real GDP can also go back directly to everyone in the same way. "

Philip's latest virtual world, High Fidelity, uses its own cryptocurrency, and Second Life with its Linden Dollars (exchangeable for real dollars) continues to maintain a thriving virtual economy -- so thriving, the grassroots content creators on the platform make as much money as the actual company. So as you'd expect, Philip's blog post has suggestions for implementing cryptocurrency to manage the Freedom Divided -- and points to Second Life's own use of a Universal Basic Income (so to speak) as a potential proof point: