Technically speaking, your Circles tokens are created automatically by the Circles ‘smart contracts’ whenever you log in to the Circles web application.
Our principle is this: with Circles, we want to express that you, as a human being, are valuable and important. Therefore, no matter what, you should be able to cover your basic living expenses, without official validation from any authority, or state. That’s why Circles is a basic income system, where we, the people, give each other basic income, instead of the state.
The creation of your personal tokens happens through the xDAI blockchain, which runs on a Proof of Stake (PoS) algorithm. You can read more about xDAI here.
Every day, when you open the app, it checks the smart contracts for updates. We set up the Circles protocols in a way that in the first year, our users can activate about 8 CRC tokens per week, inflating 7% per year. The smart contracts issue CRC tokens every day as a reward for being part of the community, and become more valuable over time as the Circles community becomes stronger.