Section 5: Using a Decentralized Autonomous Organization to Manage the Currency
In order to ensure that the community currency is transparent, fair, and accountable, the steering committee may consider setting up a decentralized autonomous organization (DAO) to manage the currency. A DAO is a decentralized network of participants that operates through a set of predetermined rules encoded in smart contracts. By using a DAO to manage the community currency, the steering committee can create a transparent and decentralized system for distributing and using the currency.
There are several benefits to using a DAO to manage the community currency, as opposed to using a centralized entity such as a non-profit organization:
- Decentralized decision-making: A DAO allows all participants to have a say in the decision-making process, rather than relying on a centralized authority to make decisions on behalf of the community. This can help to ensure that the currency aligns with the goals and values of the community.
- Transparent and auditable: A DAO operates through a set of transparent and auditable smart contracts, which can help to ensure that the currency is being used in a fair and accountable manner.
- Immutable record-keeping: A DAO uses a decentralized ledger, such as a blockchain, to keep a record of all transactions and decisions. This immutable record-keeping system helps to ensure that the currency is transparent and accountable.
- Decentralized control: A DAO allows for decentralized control of the community currency, as it is managed by a network of participants rather than a centralized authority. This can help to reduce the risk of fraud or corruption.
By using a DAO to manage the community currency, the steering committee can create a transparent, fair, and accountable system for distributing and using the currency. In the following sections, we will explore how to design and promote the currency to the community, as well as how to build a network of participating businesses.
Section 6: Designing and Promoting the Community Currency
In order for the community currency to be successful, it is important to design and promote it effectively. The steering committee should work with a designer to create the physical or digital currency, ensuring that it is visually appealing and easy to use. The currency should also include clear instructions on how to redeem it at participating businesses, as well as information about the community currency program, such as its purpose and the benefits of using it.
Once the currency has been designed, the steering committee should develop a plan for promoting it to the community. This could include:
- Distributing the currency through trading dollars: One way to distribute the currency is to allow people to trade their traditional currency, such as US dollars, for the community currency. This can be done through a local exchange or through participating businesses.
- Being paid in the community currency: Another way to distribute the currency is to allow people to be paid in the community currency for their goods or services. This can be especially effective for small businesses and freelancers who are looking to support the local economy.
- Offering incentives for using the currency: The steering committee can also offer incentives for using the community currency, such as discounts or other perks, to encourage more people to use it.
- Using rewards from the Althea ISP network: The steering committee could also consider using rewards from the Althea ISP network to distribute the community currency. Althea is a decentralized internet service provider that allows people to earn rewards for providing internet connectivity to their communities. By using the rewards from the Althea network to distribute the community currency, the steering committee can help to ensure that the currency reaches a wide range of people within the community.
- Promoting the currency through social media and other marketing channels: The steering committee should also use social media and other marketing channels to promote the community currency and educate the community about its benefits.