Even if some people waste the money on drugs the net benefit is still higher. The person determined to waste whatever income, in whatever form, will do so. The person who just needs cash to make ends meet doesn't need ever changing rules and calcified structures to try and work around.
Just give everyone the money, including the entire buildings of people who follow around making up rules and then making sure the rules are followed.
Welfare by basic income can be run by a set of scheduled tasks in a server. It's sheer simplicity outweighs all other drawbacks. Add a flat tax rate to the income side of the ledger and shackles are really starting to fall off.