Project: Fund for the local solidarity economies.

  • 07/08/2015 at 11:06 #8662
    Profile photo of Enric DuranEnric Duran
    Fund for the local solidarity economies.
    This would be a fund based  in deposits of faircoins savers and credits without interest to local nodes of faircoop to develop  local solidarity economy networks.
    By this proposal faircoin will be able to be used as a solidary credit tool for boosting the projects and peoples involved in the solidarity economy, giving also an option to create more circulation of the currency  and significance for the local level.  
    The fund and the savers
    The savers involved on that would be able to recover the same number of faircoin that has been deposited.
    The local nodes would be able to manage the funds in diferent ways depending of the local situacion and context.
    Diferent user cases 
    1) In case that already exist a – or more- local currency .
    One possible way to manage  the fund is to use it as a garantee for accelerating the local exchanges.  
    For example this funds could be used to give exchange for merchants that needs change out of the social currency, in a way that can create more confidence for merchants and producers in general.
    In this case the social currency would join as a possitive balance for the community, and in the other side the community will have a negative balance in faircoin.  This could be balanced for example accepting that people buy social currency with faircoin, or in other ways that could be studied vase by case.  
    Also, if there are social currencies that are not being used as a credit, perhaps equally the faircoin fund could have tht function.  
    2) In case that no exist a local currency that expands credit, the faircoin could be used directly for expanding credit to boost the local economy.
    That function  could be done giving credit to the producers and / or to the consumers.
    a) In the case of credit for the producers that are already in a productive process, this means that producers can do that steps:
    1. Use the faircoin for paying some providers they need.
    2. Finish the production and selling
    3. Use the payments received for returning the credit.
    b) In the case of credit for  producers that are investing in means of production, this means that producers will need more time, so can do that steps
    1. Use the faircoin for investing in means of production (this would mean perhaps that a % of faircoin will be changed to euros). An alternative option is to invest with euros, meanwhile the faircoin are used for expenses of the daily live
    2. When the producers begin to have incomes, could begin to return the credit The producers can return the faircoin credit step by step depending of their possibilities. Specially good if they could use payments received in faircoin for returning the credit.
    c) In the case of credit for consumers, we suggest to use for short term liquidity needs. For example someone member of the network is living a bad moment related liquidity for lack of work, then could have faircoin credits to be expended inside the local economy boosting the internal activiy
    The steps could be like that
    1. Users receive the faircoins
    2. Users  spend in producers, merchants, etc,  that accepts faircoin, and in things that really need,
    3. Users return the credit when they have the incomes enought. Alternatively they can have the help of their integral cooperative and faircoop node, to get some work paid in faircoin.
    The idea for that liquidity credits, are value between 50 and 250 euros,  that cusually an be returned in one or two months.  
    The faircoop local nodes
    The faircoop local nodes will be the receptors and responsibles of the Fund for local economies credit.  
    That nodes will be the responsables of the local credits and would be able for run that tasks directly  to give this responsability to other spaces of confuence at the local level, like for exemple an integral cooperative.
    For a FairCoop local node being able to apply some thinks needs to happen:
    • Have a stable working group of people involved with some activity being done related faircoop projects.
    • Have at least around 10 or 20 places accepting faircoin -or alternative a social currency- in their area of influence. That places needs to include basic needs amongst their products.
    The amount of faircoin that can be lent to the local nodes will depend of the availibility of the fund, would be possible depending of the needs to loan to the same local node at most 10% of the fund.  
    Claiming deposits and liquidity in the fund
    The fund for local economies, will mantain a level of liquidity of at least 1/3 of their funds, in a way that ever would be available faircoin if the users wants to recover their investment.  
    Anyway if some time there are lack of availibility of that funds, could be claimed a distributed % to the local funds.
    If at any moment there are a problem of liquidity in the funds, FairCoop would respond to the savers with faircoins from other funds that are vailable.  
    Possible support from FIF Coopshares fund. 
    Gived that the faircoin investment fund is scheduled to be invested in cooperative projects it could have some relation with The Fund for local economies. Then if that fund go ahead it will be proposed that Coopshares join in.
  • 07/08/2015 at 11:45 #8663
    Profile photo of MaroMaro

    Love it!

    I need to read it with more time to understand it but at this first sight it sound to me very interesting. In my case I’m in three of the possible situations. As a fairsaving address owner, I want to put some of my few savings in this project 🙂

    As an user with a so very low incomes that are non existing 😉 I see it a way to have some money that Im going to need to go to Madrid to talk with the people, collectives, etc about the project , and it means money every month (because the public transportation here is incredibly expensive!) that I dont have, and return the credit being payed by the local node because of the work done.

    As a member of a local node to improve it and help to the collectives that are in Madrid to have access to this fund…

    Very interesting proposal!

  • 25/09/2015 at 23:12 #8937
    Profile photo of SaukoSauko

    Nice Enric. we could use this funding motivation for promoting implementation of Faircoin in local expansion and presentations. Has this idea been taken to any assembly already?


  • 03/12/2015 at 01:37 #9606
    Profile photo of Enric DuranEnric Duran


    That proposal has not still being implemented but I think that we are getting closer to do so.

    I want to update one important element of the idea:

    One option to make more resilent the local ecosystem is to involve individuals and collectives in making possible a reserve fund in euros. That reserve should have certain proportion, with the part of the faircoin local fund that enter in circulation, which means that there are some probability that someone who receive that faircoins will need to exchange to euro. For example the reserve could be 1/3 of the value of the faircoin circulating. If there are a reserve of 1000 euros, then the value of the faircoin circulating could be 3000.  anyway that relation should depen of the variety of good and services that you can have accessible at your local/regional/national level…  If there are more interesting goods, less people will need to change to euros.

    This local lquidity activity could make more autonomous the local node, anyway still faircoop should add the liqiuidity support for merchants, when is not possible to manage that support at the local level

  • 08/12/2015 at 16:01 #9619
    Profile photo of MichalisMichalis

    Since we are setting up an Integral Coop, here in Heraklion (Greece), we found this idea very interesting in order to promote local collective projects, solidarity economy and FairCoin, through a local POE, all at the same time. I just want to point out some aspects that, I believe, need to be discussed and clarified, as they might be used as a future reference to respectively cases. Please enlighten me if you already have discussed these in the past and have reached a decision.

    1. Under which criteria does FairCoop provide the FairCoins to the Local POE? (number of merchants using FairCoin, corresponding amount in euro or something else?) Do we need to set any rules in which FairCoop asks for the FairCoin credit taken back?

    Furthermore, does FairCoop need to approve the credit given to a local project or person? I believe not, but there should be some kind of economic update (per month?) to the FairCoop assembly of every local POE.

    2. About the exchange rate. How is it decided in Does Local POE have to follow that rate or they can set their own depending on the circumstances? What happens to that rate in case which FairCoin is related to a local currency and local users can change from one to another through the Local POE?

    My opinion about this last point, is that FairCoin should be used as a kind of an alternative ‘local currency’ as well, because it’s main purpose would be to empower economical disobedience in the local market.

  • 11/01/2016 at 15:03 #9812
    Profile photo of MichalisMichalis

    In addition and according to what we discussed in the 4th FairCoop Open Assembly, I summed up some criteria and proposals in order to create funds for the Local Nodes that we should probably discuss and add more points.
    Criteria to create a Local Node

    1. At least 3 persons of the node should be FairCoop members that will follow up the news in Telegram, attend the on-line assemblies and take part in FairNetwork.
    2. There should be at least 5 merchants/shops accepting FairCoin in the area of the Local Node. These spots should have an active profile in the FairCoop directory and later join in the FairMarket.
    3. Local FairCoin Fund
      By the following proposals we aim in promoting the use of FairCoin in the local market by empowering the local node and give it’s members the necessary motive to expand its use.
    • An initial amount of FairCoins is donated to the local node, e.g. 1.000 for each FairCoin spot.
    • As the local node exchanges FIAT money to FairCoins, it receives an extra amount of FairCoins for each transaction.
    • Return the 1% fee of exchanges from FairCoop to the local node fund.
    1. Transparent operation of the Local Node
    • FairCoins fund should be in a FairSaving account. (what about FIAT money though?)
    • Make a regular update to the assembly about it’s recent actions, exchanges and future proposes.
    • Keep all transactions (FIAT or FairCoin) open and accessible to every FairCoop member.
    1. Fall-back procedure

    We need to agree on a procedure in order to avoid malicious use of FairCoin funds or actions that undermine the FairCoop profile, it’s values and goals. For example, what happens if a local node fails to exchange back FairCoins to Euro, probably because they used that money for other purposes?
    There must be certain cases under which FairCoop should stop supporting the Local Node and ask it’s fund back. For example, if members of the Local Node fail to comply – regularly- with the criteria agreed before.

  • 14/01/2016 at 15:54 #9821
    Profile photo of Enric DuranEnric Duran

    Hey Michalis good to read that contributions!

    We could add this point again in the next assembly and use that proposal bring by you as a base for the new discussion.

    One of the key questions is that if the amount os donated or only put in hands of the local node for managing it. The diference is that if donated can be spend, and if is only a way of decentralize the management, can be used for loans activing the local economy, but can not be spent by the local node coordinators

    If is the second, then we could study other options to support local node expenses, in complementation of that fund proposal.

  • 16/04/2016 at 20:47 #10415

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