It is so simple we can test it in this thread. I send 400 XYZ to 
Hive account@gurtsgarden, with the Ripple protocol from 2003, and also using Resilience on top of it, a 4% tax. Neither Hive account@gurtsgarden or me have any credit lines to us, so, the tax is "refunded" to me, leaving an IOU of 400 XYZ.
Then 
Hive account@scottsantens pays Hive account@gurtsgarden 300 XYZ, still with Ripple protocol from 2003, and Resilience on top with 4% tax-rate. The reallocation now "travels" through two "transaction pathways" (called credit lines in 
Hive account@rfugger's Ripple. )
@Cryptowitch2 sends 100 XYZ to 
Hive account@gerd27836653, and since neither have any IOUs to them, the tax is still refunded. Resilience is still not doing much, as you see, it achieves a "global medium" for basic income when populated by more people, but scales from nobody to infinite size.
Hive account@scottsantens then pays Hive account@gerd27836653 200 XYZ, and Hive account@gerd27836653 does not trust Hive account@scottsantens directly, but trusts Hive account@gurtsgarden, so the payment is routed via Hive account@gurtsgarden (the Ripple protocol, 2003), with taxes on every intermediary in payment routing (the Resilience protocol. )
Hive account@gerd27836653 then sends a payment of 400 XYZ to 
Hive account@resilience_me. The Ripple protocol finds a circle of debt, and clears 196 XYZ between Hive account@resilience_me, Hive account@gurtsgarden and Hive account@gerd27836653. In this time, @Cryptowitch2 has received in total 12 XYZ in basic income. Scales with people.
Hive account@gerd27836653 then sends a payment of 400 XYZ to Hive account@resilience_me. The Ripple protocol finds a circle of debt, and clears 196 XYZ between Hive account@resilience_me, Hive account@gurtsgarden and Hive account@gerd27836653. In this time, @Cryptowitch2 has received in total 12 XYZ in basic income. Scales with people.
The whole thing in a GIF,
@OttoGunger then makes a payment to me (Hive account@resilience_me ) of 300 XYZ. I do not trust @OttoGunger but I trust Hive account@gurtsgarden, so with the Ripple protocol, payment is routed via one hop. The payment forms a credit loop between Hive account@resilience_me and Hive account@gurtsgarden and clears credit.
@Cryptowitch2 has now received 26 XYZ in basic income in total, by "multi-hop debt reduction", from Resilience as a global medium that provides basic income similar to how the internet lets people communicate (transmit data. )
