Encointer, a Swiss-based NGO backed by the Kusama Treasury, is advancing the vision of a global unconditional basic income and has unveiled new results from its Nyota pilot project in Dar es Salaam, Tanzania. The results demonstrate how blockchain-based systems, when combined with local cultural practices and targeted financial support, can boost local trade, strengthen community resilience, and thereby enhance the effectiveness of development aid. The results show that combining this support with Encointer’s local community currencies multiplied the economic impact of that money by 240%.
The pilot in Dar es Salaam is a collaboration between Encointer and the local NGO Jukumu, which is dedicated to combating poverty by addressing it at the community level. Launched in late 2023, the Nyota community currency has grown organically within a district of the city, with more than 100 participants active in this emerging local economy, co-creating new ways to strengthen livelihoods.
Alinagwe Mwaselela, Managing Director of Tanzanian NGO Jukumu, reflected on the transformation: “The advantages of a decentralised monetary system in developing countries is not often discussed, yet today’s findings show that the technology has the capacity to inspire real transformation. We see that the community relationship between members is powerful, with the use of the Nyota currency increasing savings and reducing the cost of getting high-quality products and services.”
The Nyota pilot uses two blockchain-based models to strengthen local economies. One channels direct donations through Mchezo, a traditional rotating savings system supporting small businesses. The other creates a reserve backing a local digital currency, ensuring value stays within the community and external aid drives lasting growth.
“The Nyota pilot proves that when communities own their economy, they own their future. By combining local trust with blockchain innovation, we’ve turned external aid into lasting self-reliance, showing that economic resilience doesn’t need to be imported; it can be built from within,” said Alain Brenzikofer, founder of Encointer.
Encointer is a Kusama System Chain that operates through the Kusama Asset Hub and the Encointer Network. Initial grants from the Web3 Foundation helped to build the Encointer system as part of the Decentralized Nodes Program. Today, Encointer is primarily financed by the Kusama Treasury, underscoring the community’s commitment to open, decentralized development.
Bill Laboon, Vice President of Ecosystem at the Web3 Foundation noted, “Encointer’s Nyota pilot demonstrates the real-world power of decentralized technology to improve lives. By helping communities establish their own sustainable economies on Kusama, Encointer is showing how Web3 can move beyond infrastructure to create tangible, human-centered impact.”
Building on these results, Encointer is now conducting in-depth impact assessments through community surveys and transaction data analysis. The team is integrating savings groups and community-backed microloan tools directly into its mobile app, making the innovations pioneered in Nyota accessible to new communities. Encointer is also expanding partnerships with NGOs, donors, and local governments to replicate the model at a larger scale, with early successes already visible in Nigeria, where a new community has adopted the Encointer system and launched its own thriving local economy.
To learn more, Encounter has released a video alongside an in-depth look at the project.