Well, it's an alternative. But I don't think it's a good one.

Although it can be a barrier to entry at the low end, simply owning things and property is a foundation of financial stability. The government taking (by means of force) 5% of value per year ends up with 40% of that value in government hands after just 10 years. Redistributing it via UBI would not make up for that. If UBI were sufficient for anyone to live off of without doing anything, it wouldn't be sustainable. As long as there are limited physical resources that we absolutely need to live, economic value has to come from somewhere. Especially if UBI amounts were tied to inflation, it would quickly devolve into absurd hyperinflation.

And how can you sell/forfeit 5% of your X thing every year? For not just your house or car, but most things people own, you can't. The liens idea is not a reasonable workaround, puts everyone at the mercy of just about anyone else, and that is not anywhere close to freedom. Much further than what we have already.

Pretending everything doesn't fall apart after a couple years: most people would end up in a state of equilibrium of 5% of assets equaling whatever they receive in UBI.