How does Ğ1 differ from LETS (Local Exchange Trading Systems)?
LETS use time as exchange money units. More often than not one minute as one unit.
Those monetary units (minutes) are created and destroyed during the exchanges by the process of mutual debits and credits, without control.
There’s no way to know how many units there are circulating. Cheating in this system would be relatively easy to do. The system relies heavily on trust between participants.
This lack of control in LETS is most often compensated by some limits:
- maximum debits and credits on an account
- maximum amounts for exchanges
- no professional use of the exchanges
- localisation of the exchanges
- no possible account transmission by inheritance…
The libre currency allows to free the processes from all these limits, because the money is created in a mathematically controlled way with the formula DU(t+1)=DU(t) + c^2 × (M/N)(t).
A LETS could choose to use Ğ1 for their exchanges with the consequence of freeing them from their limits.
Here's a link if you would like to learn more about LETS: