# UD (Universal Dividend)

The daily amount of money created by each Ğ1 co-creator.

### Universal Dividend

The Universal Dividend is a key concept for Libre Currencies. It is the daily amount of currency that each individual in the web of Trust automatically creates by just being part of the network.

This precise number is calculated by a specific formula. Every Ğ1 co-creator creates an amount of money that is proportional to the monetary mass (the total amount of Ğ1 currency in circulation) divided by the number of Ğ1 co-creators

UD = c × (M/N)

Legend:

• UD = Universal Dividend created everyday by Ğ1 co-creator
• c = Coefficient which has a value of 0.0488 (4.88% growth rate over a 6 month period, at fixed demography. Is approx 10% / year)
• M = Monetary mass or total amount of Ğ1 currency in circulation
• N = Total number of Ğ1 co-creators in the Web of Trust

This money, which is automatically created every day on each Ğ1 co-creator's wallet is called the Universal Dividend or UD. In the G1 currency there is only one Ğ1 co-creator wallet per living human being.

This UD is what defines a "Libre Currency" in accordance with the RTM

### UD re-evaluation at every equinox

The ğ1UD is re-evaluated every 6 months (at every equinox).

The derivative money creation formula is:

UD(t+1) = UD(t) + cˆ2 × (M/N)(t)

Legend:

• See legend above for UD, c, M and N
• UD(t) = Value of the UD today
• UD(t+1) = Value of the UD tomorrow, after the re-evaluation

### Value measuring Unit

The ğ1UD is a space and time constant: Whatever the time or the place, a human being creates 1 ğ1UD per day, and this  ğ1UD always represents the same proportion of the global monetary mass (approximately).

By using this daily ğ1UD as a value measuring unit, the evolution of prices are not related to the monetary mass, but to external factors of the currency: offer/demand, weather, and other inestimable criteria.