I think option 2 is the obvious solution. You offer basic income to your citizens and provide a rational process for acquiring citizenship that allows the naturalization of individuals who have contributed value to the country. We already have many different rules and obligations for citizens and I don't see this as a problem. Our currently problematic means of allowing naturalization is much more of an issue.

I do think that basic income needs to introduced gradually and needs to be paired with reductions in the minimum wage.

This reduction in the bottom range of wages will make more jobs economically viable (Since they have to produce less value to make a profit beyond the cost of the wages). It makes immigration less attractive to people earning the bottom range of wages without leaving our working poor in the lurch. This combined with the provision of basic income to citizens makes citizens more able to compete for low income jobs since they are being subsidized.