FAQ

Please read the white paper for detailed information about the BIT Protocol

White Paper

What is BITs?

BITs is an attempt at basic income. Each user who is signed up for the service receives 100 BITs each day. No additional BITs can be created with time or resources. No user can gain any other 'advantage' when it comes to acquiring BITs.


How Else Can I Get BITs?

Additional BITs can temporarily be generated through referrals at the rate of 500 BITs per referral. After 5,000,000 users have been reached these bonuses will disappear and income generation will be the sole source of new BITs.


How can I withdraw BITs to an external wallet?

The Basic Income Token blockchain is currently in progress. BITs cannot be removed from Basic Income Token at this time. Once the blockchain has been completed, withdrawals to external wallets will be possible.


What is BIT ID?

Your BIT ID is the ID that you chose when you signed up for Basic Income Token. Other users can use it to send BITs to your account if they are trying to find you. Please note: You do not need to interact with your BIT ID to claim BITs.


When will BITs be on an exchange?

We are currently working on building the technology required to make the BIT Protocol possible. Once the technology has been completed, we will begin the process of talking with various exchanges. We unfortunately cannot make any promises as to exactly when this will be finalized.


What will happen to my BITs when it becomes a cryptocurrency?

All of your BITs will be converted to the new cryptocurrency at a 1:1 ratio automatically. You don't need to worry about anything.


What is the total supply of BITs?

There are different supplies set aside for the development of the platform, funding proposals, and the basic income that is distributed. Please read the white paper linked above for a more detailed description.


What Is Basic Income?

Basic income is a concept where all people in a specific group are given a fixed amount of unconditional income. Ideally basic income should reduce poverty and help decrease the wage gap between the rich and the poor improving the quality of society.


Is This A Cryptocurrency?

Basic Income Token is currently a digital currency and will soon become a full cryptocurrency. In mid-2018 all BITs on Basic Income Token will be transferred at a 1:1 ratio onto the new BIT blockchain.


How Do I Send BITs?

BITs can be sent by going to your account page and typing in the BIT ID of the person or business you wish to send BITs to as well as the amount of BITs you wish to send. Simple click 'Send' and the transaction will be complete.


Are There Any Costs Associated With Sending BITs?

Each transaction has a 3% fee as well as a 2 BIT fee. The fee is used to support the development of BITs, pay for the costs associated with hosting and supporting the service, and allow us to provide protection for users or businesses that were deceived during a transaction.


Will Everyone Always Get 100 BITs?

The amount of BITs generated will slowly reduce over time until the cap of 100 billion BITs have been reached. The rate of increase will eventually be set to a healthy inflation rate that is in line with the concept of basic income.


Why Do I Need To Actively Claim My BITs?

Actively requiring users to claim BITs lets BITs ensure the user is both alive and wishes to obtain their daily allowance. It also requires users to be actively engaged with BITs and encourages them to use their income regularly.


Is There A Limit To How Many Unclaimed BITs I Can Have?

Yes, the current limit to unclaimed BITs is 7x the daily allowance of 100 BITs. This means that if you can't go over 700 unclaimed BITs and will be unable to gain more unclaimed BITs until those are claimed.


Are BITs Tied To Real World Currency?

No, BITs are not tied to real world currency in any way and do not represent a specific amount of currency or value of any form. BITs are only worth as much as someone else is willing to pay for them.


What Are Vendor Accounts?

Vendor accounts are business accounts which allow transactions to be more easily managed from a buisness point of view. Each vendor account must be associated with exactly one normal owner account. There is no requirement that vendor accounts must be associated with a registered business. If you wanted to set up a lemonade stand and create a vendor account to accept BITs, you may.


How Are Vendor Accounts Different From Normal Accounts?

Vendor accounts are not user accounts and thus do not generate any BITs by themselves. In the future a feature may be added to allow vendors to be rated to let users know whether or not a particular vendor is trustable.


How Will You Ensure Each Person Has Only 1 Account?

Additional personal information will be required for users to create accounts in the future to ensure the identity of an individual and to prevent them from creating additional accounts. Old accounts will also require you to update your information to continue claiming your BITs. Accounts found violating the terms of service will be promptly suspended and BITs will be deleted. Anyone found breaking the rules will receive a 1 year ban from being able to receive BITs. Be aware that in the early days of the site while BITs is focusing on growth there may be the possibility for more abuse until we have the means to verify identities.


Will The Transaction Fees Stay The Same?

Transaction fees may raise or fall depending on how much it costs to maintain BITs. All fee changes will be announced at least 1 month before they are implemented. Personal friend to friend transactions may eventually become free in the future as well.


Chargeback Plans

How Are Chargebacks handled?

Warning, there is no current built in chargeback system in place. This will be added after BITs becomes more established. If you have a dispute you wish to address please use the contact form and include all details for your situation.

Chargebacks will be handled differently depending on the specific situation. When a user or vendor claims fraud has occurred the specific case will be looked to and solved on a case by case basis. Here are the following situations and process for each one:

The resolution is solved and the user is at fault: BITs will be returned from user to the vendor, if there are insufficient BITs then they will be drained from the basic income until the debt is resolved.

The resolution is solved and the vendor is at fault: BITs will be returned from the vendor to the user. If the vendor does not have enough BITs to fulfil the return then the vendor will be shut down and BITs will be drained from the vendor’s personal account if the vendor is not an official company. If the vendor is an official company and refuses to pay their account will be shut down and not be allowed to operate again unless they repay the debt. The BITs will be returned through the 3% transaction fees that were payed to BITs.

Vendors will have different levels of clearance. Vendors with low clearance will be required to hold a certain amount of funds in their account in the case of chargebacks. Fraud on a large large level (Several users sending money to a fake company, the face company transferring money to other users, and then all users doing simultaneous chargebacks) will be treated as fraud. An investigation will be conducted and all accounts found at fault will be shut down. Non-connected accounts will be charged by having the money taken out of their account immediately or if the money is not available it will be taken out of their daily money or new money they receive. Money that can not be recovered will be taken out of our 3% fee. Vendors with high clearance will be identified with high levels of scrutiny and will not be required to hold the same amount of funds.

In the event that there is a conflict between two users an investigation will be started and we will attempt to resolve it. The same system for recovering money will be done as if it was a vendor and a user.


Vendor Plans


How Can I Link BITs Into My Site?

Currently there is no existing API to link BITs into your website. We are currently planning on developing an API so vendors can easily accept BITs as a payment for a product or service. BITs links will work in a similar way to how most vendors currently use Paypal / Stripe.


Cross Region Plans


Are All BITs Equal?

Different countries will have their own BITs since the concept of Basic Income Token is basic income it unfortunately doesn’t work on a global scale. The average person in a third world country makes a vastly different amount of money than a person from a first world country. Making all BITs equal would devalue them for people in first and second world countries making them effectively worthless. We also do not want to leave out people in Second or Third world countries either since Basic Income Token should be able to be used anywhere. The solution to this is to have different categories of BITs. The GDP per Capita in your country will determine the BIT type that you receive. Separate countries that are close in GDP Per Capita will receive the same type of BIT. While Basic Income Token is in beta we will give everyone the highest quality BIT now to get the service started.


When BITs Are Region Split Will My BITs Become Worth Less?

No, during the initial transfer of BITs from generic to region based you will be able to select the region of BIT you wish to convert your BITs into even if you are not from that region. However after the switch you will only receive BITs from your specific region.


Will I Be Able To Trade BITs Across Regions?

After a region split occurs there will be a built in market to allow people to trade BITs between currencies. The prices of each type of BIT will be dictated by the free market.