Money Co-Created by People, not by Debt

Anchored to human participation instead of debt, members receive a small amount of Ğ1 currency daily, automatically and unconditionally, through a Trust-free (i.e. no third party is needed to administer it: no one controls it and no one can impose conditions on others) co-creation mechanism. This small daily amount is called the Universal Dividend or UD.

Understanding the Current Debt System

If you are new to economics, you may first want to learn about how money is created in most of monetary systems. Any economy 101 course will do the trick. For example, you may find this documentary Money as a debt, by Paul Grignon, informative:

The money you have is not the fruit of your labour. Money is what you accept in exchange for the fruit of your labour.

So then who produces the money? In the monetary system governed by banks, the commercial banks are the ones creating the money you use every day. These banks then have the power to decide who can receive this money, according to their criteria (generally, how best to maximise profit for the bank). Of course, this creation/loaning out of money is not free, there is interest to pay back to the bank. Overall, we have to pay back more than there is money in circulation, which leads to negative consequences: a race for profit, competition, bankruptcy for fragile borrowers. This race for profit leads, among other things, to the depletion of resources and biodiversity.

A share of money creation

In Ğ1 Currency, money is equally created between all members of present and future generations, without debt and without interest to be paid back; each member creating his or her own share of money.

Watch this video for a complete introduction to the Libre Currency :

Universal Dividend vs Universal Basic Income

This is different from the concept of basic revenue or universal income, which is usually administered by a third party (eg. government, company, NGO), which has centralised control over the money distribution and therefore must be trusted. It may impose conditions to gain access to ones money, or may withhold it, based on ones profile or behaviour.

In addition to receiving a daily universal dividend (UD) in Ğ1, you can trade products and services; give and receive donations in recognition of value contributed; and make a living.

Ğ1 currency, a measurement unit

A currency has three characteristics: it must be a means of exchange, a tool of measurement and a store of value. Anything could be a currency. It is the use of it that makes an object a currency. Cereals (including wheat), salt (from which comes the word "salary") have long been used as currency. Then came the fiduciary currencies (those based only on trust). By using debt money, you trust the bankers.

We use money as a unit of measurement, but how can we apply this unit of measurement if it does not represent the same value in space and time?

The meter has been defined as one ten-millionth of the shortest distance from the North Pole to the equator, passing through Paris.
The degree Celsius is defined as the difference in temperature between freezing and evaporating water divided by 100.
The SI second is defined by the duration of a certain number of oscillations (9,192,631,770 to be exact) related to a physical phenomenon involving the caesium atom.
These units of measurement are invariant/unchanging and universal for all human beings in time and space.

However, we do not have any means to define the value of a monetary unit. This value varies in time and space. A currency can be devalued by simply creating more units.

With Ğ1 currency, we create a new unit of measurement: the amount of money produced each day by each individual. When Ğ1 currency reaches a stable state, called full money, this quantity; the universal dividend, will always represent the same portion of money in relation to the total money supply. This makes it an invariant across time and space. The universal dividend then becomes a universal unit of measurement of value.

Backed by a Solid Economic Policy

Ğ1 currency is based on the revolutionary work of Stephane Laborde who wrote the book: Relative theory of money, in 2010. This theory sets 4 axioms; the 4 economic freedoms:
  • The freedom to choose one's monetary system
  • The freedom to use resources
  • The freedom to estimate and produce any economic value
  • The freedom to exchange, account for and display one's prices in the currency.
Freedom is of course understood in the sense of non-harm to oneself and to others. If there is harm, there is deprivation of freedom.

Learn more in these FAQs