I am just wondering... if this whole idea is based in a centralized system, you don't need a blockchain based distribution system. As far as I understood the power of the blockchain is being able to introduce untrusted third parties in a multicentered/decentralized scheme, but with a monetary system as the one you describe that would be innecessary. Although, the interesting point of backing it in the blockchain is in the aim of generating transparency, if a big number of citizens run the blockchain the government cannot modify the past without the other backers that are auditing noticing it.
Anyway good and interesting point. As we have seen until today, the problem with power in the blockchain (and economic systems in general) are the accumulation of power of the early adopters, but your idea aims to solve it.