During the last few months, I have channeled my spare time towards the implementation effort (updates at tyaga.org), which has obviously affected my ability to post regularly on this blog. I would like to catch up by discussing the ‘what’, ‘how’ and ‘why’ of currency traceability as promoted on this site. Hopefully, potential collaborators would see immediately whether or not satconomy fits well with their own vision.
Traceable to ‘WHAT’?
While many non-traditional currency design promotes currency that is traceable to a community or individual, satconomy’s emphasis is traceability to a market entity or organization. This emphasis leads to design issues that are not considered important in currency projects that promote self-sufficient collectives or personal currencies as issued by autonomous individuals. One very important issue is that each entity-issued currency brand is tracked in its own ledger (a collection of entity-owned accounts and NOT just one account.) The one-to-one correspondence between an owner and an account in a mutual-credit system may be practical for an individual, but not for an entity with many ongoing budget and organizational concerns.
HOW will it be Traceable?
An entity’s budget effectively becomes its currency. As is common practice today, each entity will be expected to administer its own ledger/budget without a requirement to open an account in a centralized database. In the OCAUP accounting model, a flow transaction results in the corresponding cancellation of the payer’s expense budget and the recipient’s revenue budget. Credits are not reusable and do not circulate among entities. Each entity independently manages the life cycle of its currency brand, including account organization, budget creation (i.e., currency issuance), assignment, use and reporting.
WHY should it be Traceable?
Currency traceability, in the context of a dynamic currency index, enhances the ability of an entity to determine the currency brand reputation of other entities. The focus is on being able to reject payments from disreputable currency brands and thus exert pressure on the entity that issued the rejected currency brand. This focus is different from systems that track reputation to guide participants to decide which currency system to join (membership in a community currency) or which network node to extend credits to (lending to a creditworthy participant). In satconomy, participants can support and pressure each other even if they do not belong to the same community or are not networked in some way.