Community Currencies


Demurrage currencies are designed as a medium of exchange, not a preferred store of value or intelligent form of investment

The reason for this is simple.

We believe that life is worth investing in!

As such we rid finance of its monopolistic advantage over other forms of capital and free our 'rational investments' to pursue other life-bringing stores of value. In other words, we want to value things that actually help to make life more wonderful for all.

If you and your village believe this way too, then a demurrage currency may be right for you.

Ten forms of Capital


Intellectual (I)


Ideas, Focus, Problem Solving, Skills, etc

Spiritual (Sp)

Intention, Faith, Focus, Karma, etc

Grounding, Balance, Attitude, Passion, Love, etc

Social (S)


Connections, Family, Relationships, etc

Material (M)

Physical Resources

Tools, Equipment, etc

Financial (F)

Fiat-money, Our NeighbourGood Coin, Seeds, Cryptocurrency, Gold, etc

Mediums of Exchange

Living (L)

Living Resources

Soil, Plants, Water, Animals, Air, etc

Cultural (C)

Song, Story, Ritual, Ceremony, etc


Health/Erotic (H)

Energy, Arousal

Motivation, Vitality, Endurance, Attention, Beauty, Strength, Sex, etc

Time (T)


Our Life!

Experiential (E)


Embodied Experience, Wisdom, etc

As we see with the chart above. There are many ways to store capital (value) in our lives, capital that will bring much more joy and happiness than digits in a computer ever could! Presently, our culture's fixation on creating money is purely driven by it being the most effective (so we believe) store of value. With common phrases such as:

"You need money to make money..." "Make your money work for you..."

We have positioned money at the apex of our thoughts and aspirations. By removing our currency's ability to store value we free ourselves from its alluring subjugation thus giving us economic permission to pursue building more worthy, passionate, and joyful forms of value!

How does DMC remove its preferential status as a store of value?


"Demurrage is essentially a β€œtax” on the holding of currency out of circulation, intended to prevent the hoarding of currency and to keep it circulating at a rapid pace!"

For more information see: Why You Want to Have a Currency That is Taxed! Guaranteed to change your mind (and possibly life) in 5 minutes or your Steem back!

This tax (or negative interest rate) discourages hoarding and encourages spending. The tax would be nominal, anywhere from 1%-10% per year and this rate would be set by the community (those who this currency model). The underlying code would continuously apply this tax to the currency.

A major barrier to this system being employed with our physical cash systems is the expense to implement this taxation protocol. With the development of crypto-currencies, this can now easily be accomplished.

Demurrage ensures that money (and digits in a computer) is no longer more valuable than our natural world.

"Whereas security in an interest-based system comes from accumulating money, in a demurrage system it comes from having productive channels through which to direct itβ€”that is, to become a nexus of the flow of wealth and not a point for its accumulation. In other words, it puts the focus on relationships, not on β€œhaving.” It accords with a different sense of self, affirmed not by enclosing more and more of the world within the confines of me and mine, but by developing and deepening relationships with others. It encourages reciprocation, sharing, and the rapid circulation of wealth. ... I store meat in the belly of my brother." - Charles Eisenstein Sacred Economics

Basic Income

This model isn't quite a 'Universal/Unconditional Basic Income' as it's conditional and it's not universal (yet). First, it would only apply to those who are participating in the system and it would be conditional on said participation. However, it is still a form of basic income and will help to maintain economic homeostasis within the economic community.

Previously demurrage based systems used the 'tax' money to fund the efforts to 'tax' the money.

Ex: Physical cash demurrage systems had to buy stamps to place on the back of their bills in order for the bill to be valid. This incurred the cost of stamps, employees, and offices to administer this service. Technology has rid us of that waste and necessity for such a tax, and this value can be returned back to the users of the currency.

A basic income is created by redistributing the demurrage 'tax' equally to those who circulate (at a certain threshold) the currency and otherwise contribute to the health of the community.

Demurrage is applied continuously, however, the basic income would be distributed monthly or quarterly to encourage high circulation of the currency.

A basic income will be part the Our NeighbourGood's template to living a more abundant and cooperation-focused life by helping to provide a feeling of economic security to all members.

Wealthier Communities and Economic Stability

Use of DMC will encourage intra-community spending keeping value within the community opposed to the siphoning of community value we see today by massive international corporations. This is encouraged through the rapid circulation brought on by demurrage and the exchange fees to convert DMC into other currencies for use outside the community.

Presently, with our money sharing two opposing forces (medium of exchange and store of value) we are subjected to the destructive cycles of recession and expansion that our global markets routinely experience. A demurrage based economic system is one that can maintain high 'economic activity' as participants are always encouraged to exchange their coins for goods, services, and other forms of value over hoarding the currency. This constant encouragement to exchange is in contrast to the cyclical nature of our economy that often times encourages people to 'save' their money.

However, in order to not encourage overconsumption (spending money just to avoid the tax), Villages provide members with a diversity of value storing tools (such as the Village itself and the Village token).

If money is the blood of a community, then saving money is akin to creating a blood clot, which inevitably leads to death... A sign of a healthy body is the same as a healthy economy, an uninterrupted cycling of energy.

Village DHO & Currency Exchange

Each Village's DHO (decentralised human organisation) and associated legal entity are the controllers and maintainers of a Villages currency and responsible for holding the treasury that backs the value of a Village's currency. Such as holding national currency in banks or other cryptocurrencies, where these accounts are governed directly by all Village members.

Each Village may issue 1 DMC currency (and give it a much better name) for every 1 native currency or any base currency as chosen by that Village. Then Village members are able to redeem their DMC with the Village Exchange for other assets.

Exchange Fee and Community Proposals

Each Village will determine an exchange fee for trading DMC into other assets, this is designed to discourage value from leaving the community. Fees gained through this exchange will be pooled into the Village DHO for use in any proposals from the community.

Benefits of Adopting DMC

  • Communities may enjoy a more active economy.

  • We will be encouraged to invest in other more life-giving forms of capital as our stores of value. (Economic self-interest is a powerful motivator!)

  • We'll be participating in a system that is beneficial for our environment. (Means a healthier environment for us, something money can scant buy.)

  • We get to collaborate on group projects that increase our quality of life. (Vote and propose community funded projects.)

  • We receive a modest basic income.

  • What's not to love?

This concept is a key feature in an Our NeighbourGood economic system.

This information is collaboratively enhanced and designed. If you find any faults or areas of improvement to these designs. Please, let's discuss and evolve them to build a better system together!

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