Designing Alternative Currency Systems: Lift conference 2015 workshop:

D E S I G N I N G A LT E R N AT I V E C U R R E N C Y S Y S T E M S : H O W, F O R W H AT P U R P O S E A N D H O W T O S E T T H E R U L E S ?

PA U L B R I S T O W, PA N G L O S S L A B S

– C H A R L E S D I C K E N S

“Annual income twenty pounds, annual expenditure nineteen pounds six,

result: happiness.

Annual income twenty pounds, annual expenditure twenty pounds six,

result: misery”

W H AT I S M O N E Y ?

H O W D O E S M O N E Y G E T C R E AT E D ?

Bank Customer

“I’d like to borrow 10000, please”

“no problem”

A C C O U N T I N G : N O T H I N G H A P P E N E D

Bank Customer

-10 000

+10 000

0

N O T T H E W H O L E S T O R Y…

Bank Customer

-10 000

+10 0000Loan

Interest+1 000

Fees+1 000Where does this

come from?+12 000+10 000

N O T T H E W H O L E S T O R Y…

Bank Customer

-10 000

+10 0000Loan

Interest+1 000

Fees+1 000Where does this

come from?+12 000+10 000

It’s money, so it must have been created by

another loan in the system

T H E I N T E R E S T PAY M E N T S D R I V E T H E S Y S T E M I C N E E D F O R G R O W T H

0

5500

11000

16500

22000

loan repayment loan repayment loan

R O U N D TA B L EE X A M P L E S O F A LT E R N A T I V E C U R R E N C Y S Y S T E M S

M AT H I E U B U F F E N O I R S W I S S B I T C O I N A S S O C I AT I O N

A M I N K H O S R AV I M Y D R O P I N T H E O C E A N S . O R G

A N T O N I N C A L D E R O N M O N N A I E L O C A L E D E G R A N D G E N E V E

B E R N A R D D U G A S B A L A N C E D M O N E TA R Y S Y S T E M

Image: CC-BY-SA 2.0 Janos Korom

THE PURPOSE OF THE BALANCED MONETARY SYSTEM (BMS)

• PREVENTING FRAUDby using formal double accounting protocol and transparency

• RESPECTINGPHYSICAL LAWS OF MEASUREMENT SYSTEMS by using clear scales

• ENSURING FREEDOM AND RESPONSABILITY:everyone making own personal central bank

T H E R U L E S O F T H E B A L A N C E D M O N E TA R Y S Y S T E M

Desired Effect RulePersonal account measures the import/export unbalance with traceability

Each human can make a personal recording account with measurment referential parameters (origin, sign, scale) that can be checked by others

There is only ONE class of HUMANS : thus there is equality of initial economical power.

Import unbalance is automatically limited and each HUMAN has the same right to “import unbalance”

The scale of a transfer price is formally adjusted to the scales of accounts according to laws of physical measurement

The amount for “import unbalance right” is the measurement scale for price value negociation (poverty level)

System stability obtained through automatic return to balanced state

The Rate of Return to Equilibrium defines the speed for automatically decreasing the unbalance current amount

Financing other's projects The initial amount of “import unbalance right” is reserved for financing other's projects

T H E P U R P O S E O F B I T C O I N

• First a definition of the technology:

• Bitcoin is a peer to peer network that maintains a public decentralized ledger of digital assets. This ledger is called a blockchain.

• Digitally prove ownership ("I am the only one able to transfer this token").

• The first and easiest application of this technology is to create a currency. The unit is called for now bitcoin.

T H E R U L E S O F B I T C O I N

Desired Effect Rule

Scarcity      21 000 000 Bitcoin Units

Divisibilty   Each Bitcoin Cointains 100 000 000 Satoshis (Total  Of 2.1 Quadrillons)

Malleability Easy To Recombine Fractions Of Bitcoins

Durability   Purely Digital, Millions Of Copy Of The Ledgers Exists

Portability   Sent Over The Internet, Transactions Only Take Minutes

Privacy       Users Pseudonymously Identified By Their Public Address

Fungibility   Very Difficult To Differentiate One Bitcoin From Another

T H E P U R P O S E O F S O L A R C O I N

• Based on the same technology as Bitcoin, it serves the same goals as a currency with an added one:

• Electricity used by the computers supporting the network must be produced by a renewable source of energy.

T H E R U L E S O F S O L A R C O I N

Desired Effect Rule

As a currency it uses the same rules as bitcoins

+

Creation of the coins and distributions of the processing fees is done with the help of a Foundation that ensure that the source of

energy used are renewable.

P U R P O S E O F M Y D R O P I N T H E O C E A N S

• Greater balance between our economy and nature

• Empower people to value nature

R U L E S O F D I O

Desired Effect Rule

Balancing Economy With Nature Global Complimentary Currency To National Currencies

Association Of Human Activity With Environmental Costs

Creation & Circulation Of DIO Linked To Environmental Costs

Incentivising Positive Actions Towards The Environment

Rewarding People & Businesses For Environmental Behaviour With DIO. Incremental Rewards Linked To Status

Shared Responsibility For Nature’s Stewardship. Wealth Equality.

Citizens Dividend Linked To Nature

DIO Stability Cannot Be Speculated Or Traded With Other Currencies. Pegged To Stable Metrics.

THE PURPOSE OF A LOCAL CURRENCY

● Revitalize the regional economy

● Create social links

● Ecological Impacts

● Allow citizens to think about money creation

THE RULES OF A LOCAL CURRENCYDesired Effect Rule

Development of activities characterized by specific values

Ethics guidelines

Focus the circulation between certain economic actors

Stakeholders: Businesses / Individuals / Authorities

1) Allow everyone to enter the system, Money multiplier through guarantee fund

2) Money issued simultaneously with transactions, Mutualization of the credits/debts

Principles of creation:

1) Pledged currency

2) Credit clearing system

3) Interplay of both

Incitement to join the network, Reassure members

Convertibility: One way / Back and forth / Incentive exchange

THE RULES OF A LOCAL CURRENCY

Desired Effect Rule

Acceleration of the velocity of money circulation

Stamp Scrip

Citizen sovereignty over currency Governance: Sortition / Representativeness / Proportionality

Balance between symbolic role of material money and its practicality

Format: Paper / Electronic

W H O H A S U S E D A N A LT E R N AT I V E C U R R E N C Y ?

– M I LT O N F R I E D M A N

“The short answer—and the right answer—is that private persons accept these pieces of paper

because they are confident that others will. The pieces of green paper have value because

everybody thinks they have value. Everybody thinks they have value because in everybody's

experience they have had value...”

W H Y D O W E B E L I E V E I N M O N E Y ?

Isn’t that the definition of a Brand?

Y O U R T U R ND E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

panglosslabs.org/currency

W H AT P U R P O S E D O Y O U W A N T ?D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

G E T I N T O G R O U P SD E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

Y O U R T U R ND E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

R E M A I N I N G T I M E :

Y O U R T U R N : R E S U LT SD E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

T H A N K Y O UD E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

M AT H I E U B U F F E N O I R S W I S S B I T C O I N A S S O C I AT I O N

A M I N K H O S R AV I M Y D R O P I N T H E O C E A N S . O R G

A N T O N I N C A L D E R O N M O N N A I E L O C A L E D E G R A N D G E N E V E

B E R N A R D D U G A S B A L A N C E D M O N E TA R Y S Y S T E M

Image: CC-BY-SA 2.0 Janos Korom

PA U L B R I S T O W PA N G L O S S L A B S