A community currency template with zero reserve mutual credit and adjustable parameters
Blockchain transactions at https://live.ether.camp/account/d870e20d6b2ad29a3a68f6a3ddd27d6a79bd61a2
JSON at https://live.ether.camp/account/d870e20d6b2ad29a3a68f6a3ddd27d6a79bd61a2/contract
HTML Dapp at http://communitycurrency.website/
This is not intended to be a global currency. It is intended to become an ecosystem of community currencies using this template, each of them with different parameters according to the needs of each community.
The type of community we mean is local communities (for example a municipality) or communities with charitable, service, participatory or empowering orientation, that run mixed economies with free market combined with community public budget and public redistributive works. Examples can be local authorities, social movements associations, social economy businesses, workers unions, etc. It includes therefore an (optional) taxation function. Each community is supposed to name their currency with a different name.
Currency Governance and monetary decision process
We decouple the contract running the decision process in a supposed DAO and the currency contract running the monetary mechanics.
The DAO may use whatever more or less traditional or more or less innovative democracy to take decisions.
The community is supposed to be managed by a DAO at ethereum or outside ethereum, or just run by a DAO using handwritten notebooks or any eGovernance software. The currency contract does not cover how the DAO is managed, the voting and decision mechanisms.
Once the DAO has taken the main monetary decisions it passes the wished parameters to the currency contract through the two accounts allowed to change the settings of the currency: the treasury account and the community account. At creating the currency contract you may set who they are.
The currency design presumes that all monetary decisions of the community are implemented through two trusted accounts:
- the treasury account. Creates the currency, sets the basic parameters and deploys it to the blockchain. It can mint and assign amounts of CCUs (Community Currency Units).
- the community account. Admits or kicks out members. It can mint and assign amounts of Reputation. Users making a transfer can be anybody having an ethereum account. Members, additionally, can authorize credits to other members. Anybody, including Members, may have different ethereum accounts. The community is supposed to have external mechanisms to establish the identity of a person, and therefore establish which of his accounts this person prefers to use as the unique account as member.
- What the hell is p2p credit at DESPERADOS THEORY blog
- Moneda con pagos y creditos p2p sin reserva at DESPERADOS THEORY blog
- Apuntes sobre la soberania monetaria at Instituto de la Moneda Social
The currency is supposed to be used within a community. Nevertheless, the currency can be used by anybody having an ethereum account to perform standard payment transactions. Whith regards payments it works as any other free market monetary token. Nevertheless, anybody using the currency pays a VAT for every transaction to the community, but no other taxes.
Within the community, the members have additional obligations and benefits. They can be endorsed with Trust by peer members to get credit lines.
Members have a Reputation as "Money Lenders". Members can authorise a p2p Credit to another member, with a deadline. Its up to the Money Lender to investigate the borrowers solvency. No algorithm is provided within the currency contract to analyze the solvency. Just an activity indicator.
Once the credit is approved the system generates the necessary Community Currency Units and adds them to the CCUs balance of the borrower. The Money Lender pays with a reputation cost measured in endorsed Units of Trust. The Units of Trust needed to endorse the credit is proportional to the amount and the time of the credit.
When the deadline is over:
- if the credit has been returned, and the balance of the borrower is again positive, the Money Lender gets back the Reputation Cost and a reward in Reputation. In the future he will be able to authorize larger credits.
- if the credit has not been returned, and the balance of the borrower is still negative, the Money Lender loses the Reputation Cost and a fine in Reputation. In the future he will be able to authorize only smaller credits. The borrower gets the account blocked until the debt is covered by future incomes. The Community has the option to kick this member out.
- treasury; the address of the treasury of the DAO. The creator and minter of the currency
- community; the address of the Community account. Where donations and taxes are paid. Account used to pay community works
- vatRate; the depreciation at each transaction. The VAT to be paid to the DAO at the community account. % x 100
- demurrage; a periodic depreciation on the monetary assets. Not used. Judged as unwanted
- rewardRate; reward Rate to the moneyLender of a successful credit, as a multiplier of the Reputation Cost of the credit. % x 100
- iniMemberCCUs; initial Community Currency Units given to any new member. The monetary mass is automatically increased with any new member. By default, the total monetary mass is proportional to the number of members
- iniMemberReputation; initial Reputation given to any new member
the community account can accept accounts as members. The Community should ensure the unique correspondence to a real person a community can opt to name itself member or not and therefore give credits or not _newMember is the address of the new member _newAlias is the alias or human readable ID of the new member changed alias, initial balance in CCUs, initial reputation in UoT
the community account can kick out members. The action deletes all balances _oldMember is the address of the member to be kicked out isMember turned to false, all other account balances to zero, except _CCUs
get Commune budget state
get the currency parameters
get the monetary Totals
the treasury account can change the currency parameters _newDemurrage is the new demurrage rate. % x 100 _newrewardRate is the new reward rate for successful credits. % x 100 _newIniCCUs is the new initial Community Currency Units given to any new member _newIniR is the new initial Reputation given to any new member new demurrage, reward rate, initial CCUs and initial reputation for new members
the treasury account can change to a new community address _newCommunity is the new address holding the Community permissions new community address
the community account can change to a new treasury address _newTreasury is the new address holding the Community permissions new treasury address
set new rolling Commune budget
set new exchange
update the credit status check if deadline is over if time is over reset credit to zero, deadline to zero if balance is negative the credit was not returned, the money lender balanceReputation is not restored and is penalized with a 20%, as regards the borrower will not be able to make any new transfer until future incomes cover the debts, money lender reputation penalized if balance is not negative the credit was returned, the money lender balanceReputation is restored and is rewardRateed with a 20%, money lender reputation rewarded
function make a payment
anybody with an ethereum account can make a payment if he has sufficient CCUs in the balance
any member can add to the amount available at the balance, what remains unused in the credit line
_payee is the account to be credited
_payment is the amount in CCUs to be send
balance of payee increased
balance of sender decreased
if necessary, available credit decreased
credit information updated pay with the CCUs available at the balance and the credit _available is the spending limit of an account, given the account balance in _CCUs and the _credit
function authorize a credit only members can authorize or get a credit _borrower is the address of the credit borrower _credit is the amount of the credit line in CCUs _daysAfter is the deadline of the credit line in number of days from today
monitor Wallet the borrower candidate has given access to monitor all relevant parameters of his account to the money lender the community can also monitor all accounts _monitored is the address to be monitored _getCCUs is the balance in CCUs _getCredit is the remaining credit _getDeadline is the credit deadline _getMoneyLender is the address of the current money lender or the candidate money lender _getUnitsOfTrust is the cost in reputation of the credit _getIsMember is boolean if the account is a member _getAlias is the alias _getReputation is the reputation in UoTs _getLast is the date of the last transaction
claim Hours to paid from Community
the Commune pays Hours
a Commoner pays CrowdFunding
the Commune pays Expenses