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5. Treasury, Monetary Policy and Monetary Mass

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Rogelio Segovia edited this page Mar 7, 2016 · 2 revisions
The **monetary mass** is administered by the **Treasury**. The Treasury executes monetary policy proposals voted by all **commoners**. In case of a DAO, voted at the DAO. Once voted, the monetary policy becomes **law**, and is executed by the Treasury.

The proposal analyzes:

  1. The total monetary mass, minted money and credit money combined
  2. The monetary mass at commoners wallets and at other wallets
  3. The total available reputation for new credits in Units of Trust
  4. The global economic activity, measured by the collected demurrage
  5. The approved Commons Budget

The proposal sets a goal in inflation. Not returned credits may result in inflation. The Treasury may need to detract these losses form the Commune wallet.

The proposal modifies:

  1. The monetary mass by minting or destroying money in the Commune wallet
  2. The monetary parameters
    ** Demurrage Rate in %, thus increasing the Commune's income
    ** Money Lenders Reputation Reward Rate in %, thus activating credit
    ** Members welcome Amount in HR, thus activating market
    ** Members welcome Reputation in UoT (Units of Trust), thus activating

Exchange Rate with legal tender

While the currency is not freely exchanging in the cryptocurrencies exchange markets, the Community decides the exchange rate of the HR with the legal tender currency at their area. Recommended exchange rate is around the average HOUR labour cost.

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"...but money has become by convention a sort of representative of demand; and this is why it has the name 'money' (nomisma) - because it exists not by nature but by law (nomos) and it is in our power to change it ..." Aristotle, Nicomachean Ethics [1133b 1]

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