Why Build Your Own Community Currency System?

A Local Exchange Trading System (LETS) is a community-owned and run currency system based on a zero-sum model, as opposed to monetary systems in which the money-suppliers continuously add interest, thereby increasing the money supply. Each member's account is usually set to start at zero; in order to trade on average half the accounts will be "in commitment” but with no interest being charged or earned at either end.

The zero-sum system enables members who engage in mutual exchange activities to record the value of that exchange, as a simultaneous plus and minus in each other's accounts. Historically, some LETS groups keep manual ledgers, others use stand alone database systems to carry out these transactions. The next generation of networked community currency systems is changing the scene, immensely.

FULL ARTICLE: http://publication.nodel.org/Community-Currency-System