Ask us anything!!’s Docs Ideas for a FAQ

This document is to collect all the different questions that we will ask and answer in the following forum.

Below you’ll find V 1.0 of the FAQ. All the questions at the moment has been answered but this is yet a draft and some answers could be modified next days. So feel free to add or modify content. We’ve made an index first and then included the questions below. Ideally, when formatted for WordPress, the index would include quicklinks to the answers.

  1. What’s the relationship between Fair.Coop and Faircoin? How will they intersect and/or interact?

  2. How can cryptocurrencies alleviate economic injustice and promote social good?

  3. How is Faircoin different to Bitcoin?

  4. Is Faircoin your model of how a currency could be useful for a fair economy?

  5. Why choose to take advantage of an existing cryptocurrency such as Faircoin?

  6. Who are we buying Faircoins from?

  7. How did the initial distribution of Faircoin take place?

  8. What are the technical specifications of the Faircoin?

  9. What is ‘Proof of Stake’ mining?

  10. Can I make a profit by investing in Faircoin? Can I make a profit through Fair.coop?

  11. Faircoin is speculation?

  12.  What benefit is there to an individual who wants to participate?

  13. Does Faircoop have a legal status and/or structure?  If so, what is it and if not, why not?

  14. Who decides how to distribute the funds? What are the organizations and collectives who will benefit from these funds?

  15. How do I cooperate?

  16. Why so many councils?

  17. What’s the CIC’s involvement in the project? Is it the driving force behind Fair.Coop and Faircoin?

  18. I have a project in the global south. How do I use/work with 2017.fair.coop? When will it be functional?
  19. Can Fair.Coop and Faircoin really work on a global scale? What would that look like?

  20. What is the long term vision for Faircoop?

What’s the relationship between Fair.Coop and Faircoin? How will they intersect and/or interact?

Our intention is to be “Fair in name, fair in practice”. Fair.Coop uses Faircoin as its social capital and store of value. Fair.Coop is Faircoin’s “conscience” – it’s a cryptocurrency attached to Commons-oriented responsibility.

Fair.Coop already holds 20% of all Faircoins in existence, which guarantees that an important part of the growth of the currency’s value will go to the common good. This will be guaranteed by Fair.Coop’s democratic accountability system that is being built.

From the point of view of FairCoop, faircoin is a tool to empower ourselves in the transition process of building a new economy at global scale, but not the goal itself

How can cryptocurrencies alleviate economic injustice and promote social good?

Up until now, cryptocurrencies have held great potential, but which hasn’t always coincided with a practicality that would alleviate those ills. Certain elements such as bypassing the need for central banks are steps along the way, but there was something missing.

Anyway, currencies are not enought to create an economical change. We need to build a new cooperative production system, sharing kwowledge, organize as a consumers, funding without interested, and so on.

A holistic social and economic system is urgently needed to address the inequalites inherent in the current system, and this is one of the main goals of FairCoop

How is Faircoin different to Bitcoin?

For one thing, Faircoin is technically different in the currency generation protocol used. Faircoin uses Proof of Stake (POS), instead of Proof of Work (POW). Yet, at the security level Faircoin us both.

The use of POS instead of POW for currency creation, prevents any unfair advantage which could be afforded to those who can access and invest in the environmentally destructive means of mining (destructive for its consumption of energy and resources needed for the servers).

Anyway, POS is not the fairest system for the fairest economy, and needs to be improved in the future.  In this sense one advantage here is that FairCoop could lead the human consensus process needed to build and implement this pending fairer currency generation system.

What really makes Faircoin different is its specific use as a tool for Fair.coop, as a cryptocurrency designed to act as store of value for Fair.Coop and its redistribution of capital to socially and environmentally coherent projects.

Is Faircoin your model of how a currency could be useful for a fair economy?

Not so; Faircoin is not a monetary model from the Fair.coop point of view, but a tool – one among others – that we want to use in the transition process of creating social change and building a new economic system. As a tool, its purpose is to be useful for redistributing social capital between projects which aim to create change. Also, as a tool, it’s an element to begin creating independent transnational economic relations outside the control of the old banking system. The model that we envision will go far beyond this, but at this point we are still far from it, and Faircoin is one useful tool to open the way.

Why choose to take advantage of an existing cryptocurrency such as Faircoin?

For a cryptocurrency to be accepted in cryptocurrency markets, and be able to be bought and sold–exchanging it, for example, for Bitcoins–it must have a clean launch, which is to say, it must have been previously published so that all could participate. Another much-valued aspect is that the initiators of the cryptocurrency do not retain a significant portion of the cryptocurrency, or else it would be considered too much unfair to be accepted.

If we were to distribute the cryptocurrency from the outset among the collectives that filled out a form and met certain criteria, it might seem quite fair outside the cryptocurrency community, but inside we could easily find ourselves up against boycotts and complaints for having distributed it among our colleagues, using political criteria, etc.

If, to avoid this situation, we were to allow a large percentage to be distributed by conventional criteria (mining it for several days, with a random list anyone can sign up for, etc.), we’d end up with minorities from the North making personal profits from our project, in a framework of speculation (because of the project we would be presenting). This could increase more quickly the value related what we could afford, leading to drops in price which would create confusion, etc.

In contrast, if we take advantage of a cryptocurrency that has already been created and has already been through this initial speculative phase, is currently devalued, and on its way to being abandoned  is very easy for us to obtain an important share by means that are completely accepted by the cryptocommunity: buying it on the market for next to nothing. This way, we has been be able to create a very advantageous situation for our project without having to assume the delicate responsibility of creating and distributing the cryptocurrency from the beginning.

Who are we buying Faircoins from?

At the moment, most of the offers to sell faircoins come from private investors or supporters that have previously bought faircoins.  There are also some that still come from the people that filled from the first distribution, but most of them already sold off in the first few weeks and months.

When we start FairMarket, shops that get paid in faircoin will have offers to sell faircoins, and later, when projects receiving faircoin donations are eligible to spend, it will be possible to buy from them as well.

 

How did the initial distribution of Faircoin take place?

  • March 6th 2014 – Faircoin created by an anonymous developer.
  • April 23rd 2014 (approx.) – Faircoin abandoned by its anonymous developer.
  • May 6th 2014 (approx.) – Faircoin taken over by the community. Enric Duran was among the people involved in the takeover.
  • The above actions are documented in this bitcointalk thread:
  • Faircoin began in March with this first ANN: https://bitcointalk.org/index.php?topic=487212.0
  • “FairCoin was abandoned at the end of April 2014 by its original developer; but not after promising huge projects, private investors, and much more. The FairCoin community was left to sit with unfulfilled promises, high hopes diminished, and its morale completely drained. A few leaders in the remaining community organized a new development team, consisting of some of the most devoted members.”
  • This was the context of our second ANN: https://bitcointalk.org/index.php?topic=601280.0
  • From the initial community takeover, a team of three committed individuals, were the people who really gave continuity to the dev team: smartaction, drakandar and thokon00
  • Because the creator of the second ANN was not really involved and this made good communication inefficient, we decided to close the second ANN at the same time of the First hard fork, and we created this third ANN only accessible by the current FairCoin Development Team.
  • “FairCoin is a decentralised virtual currency, distributed through a vast airdrop process during the 6th and 8th of March, 2014 (view airdrop statistics). An approximate 49,750 addresses were logged for the giveaway, each able to claim 1000 FAIR per hour. Automated airdrop claiming methods had no effect, as each IP address could register once per hour, and 2 different captchas had to be solved. These security precautions were hidden till the day of distribution. FairCoin’s vast distribution method allowed a good portion of the cryptocurrency community to claim a little bit of the 50,000,000 FairCoins, each.” https://fair-coin.org/

What are the technical specifications of Faircoin?

Technical features of Faircoin

  • 99.99% POS: It is a hybrid POW / POS system but money creation is 99.99% POS. Thus, the majority of faircoins are minted, ie, the system works thanks to everyone’s savings.
  • As for security, there is a POW block every 5 minutes, and a POS block every 10 minutes.These two methods are combined to provide the best of each in securing the system.
  • The low remuneration for mining, 0.001FAC / block, prevents energy waste since using high consumption mining devices is just not worth it.
  • Money Supply of 50,000,000 coins mined out in the first block and initially spread out to all who applied for it, so that not only those with capital or mining resources could have access.
  • Savers, ie, people connected to the network and minting, will receive 6% of the coins during the first year, 3% the second and 1% from the 3rd year on. To get a block saving you need to save the coins a minimal of 21 days, because this is the age needed to madure the coins before minting.

Some of these features may be changed by consensus on the network in benefit of Faircoin, a topic which Fair.Coop and its members have a lot to say about.

In fact, since Fair.coop is based on open political participation, we can say that Fair.Coop adds to Faircoin with an approval based on agreements between humans– which, to our knowledge, no other cryptocurrency does. We call it “human-based consensus”.”

What is ‘Proof of Stake’ mining?

There are two systems by which miners can earn rewards for investing in digital currencies:

Proof-of-Work Mining. This is exactly what it sounds like: you earn coin and transaction fee rewards according to the number of blocks you mine successfully. Once a miner or miners has completed the satisfactory mining of a data block, they earn a number of coins, a share of the transaction fees contained within that block, or a combination of the two. This type of mining requires an investor to take an active part in mining data blocks, which helps verify transaction data and create new coins. With proof-of-work mining, if you don’t put in the effort to mine, you won’t earn anything extra.

Proof-of-Stake Mining. In the truest sense of the word, this isn’t actually “mining” per se, since there isn’t any additional work required on the part of the investor. All you have to do to earn with this method is to hold coins in a given type of digital currency. Your earnings are based upon the number of coins, or “stake,” you hold. The more you invest, the more you are likely to earn. The advocates of this method like to point out that it provides for higher currency security, for those who invest more heavily are more likely inspired to see it succeed.

The digital currencies who use the proof-of-stake method almost always use it in combination with proof-of-work mining. Otherwise, the temptation to invest heavily, but not take an active role in mining data blocks, could result in extremely slow mining. This in turn could result in longer transaction times and lower transaction security, neither of which are healthy for an alternative currency.

(from: https://www.coinpursuit.com/pages/proof-of-work-proof-of-stake-bitcoin-mining )

Can I make a profit by investing in Faircoin? Can I make a profit through Fair.coop?

Yes, you can sell higher after buying lower. The kind of profit that FairCoop promotes is through savings. FairSaving is a project, promoted by FairCoop, where you save faircoin for at least 6 months. After this time, if the price has goes up you will make profit, if the price has goes down, you will have a loss.
Therefore, the kind of profit that FairCoop supports is medium- or long-term investment, because this kind of profit helps the long-term goals of FairCoop related with the redistribution of wealth through FairCoop funds.

Is Faircoin speculation?

Speculation is a product of freedom, in the sense that there are people that create services, people that buy, people that sell. Therefore, any market that is free enough to build this structure to trade with, is.

Cryptocurrencies, as unregulated markets based on freedom, are susceptible to speculation. In other words, if you value decentralization, you need to be conscious that it is not possible for a decentralized money system to be closed to trading on private markets.

You could ask yourself if the Euro or Dollar are speculation, and yes, there are lots of traders speculating with these fiat currencies. We don’t notice it if we have all our money in the same currency we use for spending, but when we have money in a currency other than the one most used in our region, we can gain or we can lose value.

The percentage of gains or losses in one market depends on the market volume and liquidity. Therefore markets with more liquidity (like Euro or Dollar) have smaller variations in price, and therefore the way to gain or lose a lot is to invest a lot. By contrast, in markets with very low volume, the possibility of larger percentage wins or losses is greater, and this increases the outside perception that cryptocurrencies are about speculation.

That said, people willing to buy or sell for short term wins also do a kind of social benefit in a low liquidity money market, because they facilitate entry and exit for the people using the currency for practical purposes (like buying and selling goods and services, or help the value of the currency with long term savings). This is still a controversial question in anti- and post-capitalist environments.

In fact, a currency like Faircoin needs a low volume market at first, in order to have greater volume and acceptance in the future.

 

What benefit is there to an individual who wants to participate?

There are a lot of benefits! You would be involved in a large, participatory effort to improve things in this imperfect world. Everyone has a role here, and can help make it possible. Otherwise, depending on how you are interested in taking part, you could have different kind of rewards. For example:

– If you got involved by doing tasks through a commission, you could be rewarded in faircoins (and in the future, faircredit) to be saved or spent (please note, the way of how to organize this is yet being discussed in the Ecosystemic council).

– If you get involved by selling your products or services in FairMarket (our online marketplace, opening in the near future) you will be able to work for yourself or help sustain your already existing personal business.

– If you get involved in a future project related to the global commons, you could perhaps receive a part of the faircoins that would be donated to this project.

In addition to these, there are a lot more options to be defined in the future.

 

 

Does Faircoop have a legal status and/or structure?  If so, what is it and if not, why not?

Although it uses the name “coop”, it’s more of an alliance that incorporates actual, on the ground coops. It’s a bit like asking “What is the ownership status of the Occupy Movement. The project is under construction and it depends on a process of participation which is open to the public, all of which is explained here on the Fair.coop site. You could say that the entire website is the charter, really.

Who decides how to distribute the funds? What are the organizations and collectives who will benefit from these funds?

Who the funds will go to isn’t something that’s decided by the promoting team. Identifying who the potential benefactors are and following through is a ongoing democratic process the whole coop, as it’s coming together right now: each of the different Funds is going to be co-managed by a council that works in conjunction with all the faircoop structure, as well as with the entire community built around Fair.Coop.

The type of organizations we want to work with will be those who could potentially generate peer production in the material plane, as well as benefit from the shared knowledge accrued by the coop. We also want to focus on projects that lack the necessary means to activate this type of peer production.

Other examples would include strategic projects that can add more value to the global commons. Projects which, on their own, maybe wouldn’t have the ability to network at this scale to share their knowledge. The projects would also benefit from the moral and material support of a global community if and when attacked by hostile interests. All in all, Fair.Coop will increase the resilience of these projects.

More than naming specific organizations, we are very open to being approached so that everyone can participate in Fair.Coop’s co-creation and ongoing development.

We are also very interested in empowering the Global South to increase its resiliency. Regarding our use of the term “Global South”; while there’s an undeniable geographical truth to this, we also mean the 99%, independent of where we may reside.

How do I cooperate?

An interested group or individual can first simply join our social network, and check out the work teams and various commissions. Fair.Coop, despite its technology, is human in essence.

For further details of ways to participate you can see the related page on FairCoop /ways-to-participate/

Finally, please feel free to directly contact the people already involved in the network and ask any questions related to your involvement.

Why so many councils?

There is one council related to every fund created, which also means one existing or potential community to be developed for every council. This is a way to decentralize key decisions in FairCoop in an organized way. Therefore, there is no single institution charged with deciding everything, but instead, different councils simultaneously involved with the people involved in FairCoop, so that they may act and decide together.

 

What’s the CIC’s involvement in the project? Is it the driving force behind Fair.Coop and Faircoin?

A lot of the same people are involved with Fair.Coop, but the CIC – Catalan integral Cooperative- as an entity is not the central leader or motor for the project. The CIC is an example of one collective attached to local bio-regional realities, but there are many more in the world, which are being united within Fair.Coop.

The CIC could be thought of one of the first local participant, and one of many true “peers” in the P2P network making up the global Fair-Coop.

 

I have a project in the global south. How do I use/work with 2017.fair.coop? When will it be functional?

Firstly Faircoop needs to create the organizational structure that allows for a  decision making process and organizational framework around the world. For this we are yet pending of develop the Global south council whose aim is partly “creating support nodes in as many parts of the world as possible, which may deal with linking 2017.fair.coop with collectives in the process of empowerment, enabling their validation (to avoid possible deception and abuse) and thus creating a network of mutual cooperation on a global scale, as settled as possible in the different territories”((/fairfunds/)). Local nodes are currently being developed in various places around the world.  Therefore we have some road still, perhaps a long one, to walk before we can have a functional way to help local projects in the global south.

Anyway meanwhile you can share your project in the global south community,( /groups/global-south-community/forum/ ) and other users can give you ideas, questions or whatever, or you can join a commission or the council itself and help to build it…So right now we can begin sharing in an informal way, at the same time that we are building the structure that the project needs.

 

Can Fair.Coop and Faircoin really work on a global scale? What could that look like?

In fact, Fair.Coop can’t be anything but global; it’s been specifically designed to be global – for this reason, we call it the Earth Cooperative. It’s not a scaled-up local project. One of Fair.Coop’s key objectives is to facilitate a global body of knowledge, capable of generating concrete impact locally.

At any rate, we could make a working distinction between two sets of mechanisms that’d be produced by Fair.Coop: global and local. At the local level we’d be seeing local, specialized mechanisms and knowledge which, in turn, would feed into a global open knowledge economy comprised of, among other things, valuable data and monetary and economic tools. This will be a bidirectional relationship, as both parts will nourish one another for the benefit of the whole.

What is the long term vision for Faircoop?

Our long term vision is to create a means for constructing a new social and economic system based on decentralized cooperation, bypassing the need for nation-states and central banks. In the short term, we are creating a space for a real collaborative, commons-oriented economy, mutually generated by projects worldwide and destined for humanity as a whole. We’re willing to compile the sum of the knowledge distributed among different collectives for a cohesive impact.