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Freecoin: 6 Indicators of Success.

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Carlo Vercellone, Francesca Bria, Andrea Fumagalli, Eleonora Gentilucci, Alfonso Giuliani, Giorgio Griziotti, Pierluigi Vattimo.

D-CENT: Managing the commons in the knowledge economy. 30/06/2015





Indicator #1: Increased volume of currency in a local area. Given that the volume of conventional money in a local area is scarce, evidenced by the level of underutilized human and material resources in a given area, Freecoin tools should increase the volume of transactions in a local area to mobilize these resources. The velocity of money in circulation may increase. Higher velocity means the same quantity of money is used for a greater number of transactions; it is measured as the ratio of the GDP to the given stock of money.

Indicator #2: Increased employment opportunities. Freecoin tools should give their participants a safe way of trying out their new employment choices, by improving the local rate of employment.

Indicator #3: Increased importance of traditionally undervalued activities. Community members themselves decide the value of childcare, artisan skills or community organizing, by establishing a connection between the distribution and circulation of social credits and the political process of deliberation about the community sector.

Indicator #4: Increased strengthening of social relationships. Freecoin tools are intended to help the members of a society to reinforce and create social networks. In order to measure this feature one can use the increase in the number of individual citizens that actively participate to decision making process by using D-CENT platform and the increasing engagement with local democracy, associations and organizations by means of Freecoin tools.

Indicator #5: Counter-cyclical economic tendency. Some complementary currency systems provide a beneficial countercyclical impulse to the economy. During periods of recessions, the volume of transactions and the number of participants increases, while the opposite happens during boom periods.

Indicator #6: Reduced need to migrate to urban areas in a search for money. If there is enough income to mobilize local production using local resources to meet local needs, people do not need to migrate to different urban areas in order to earn money.