Faircoin is a free cryptocurrency. As such, it circulates and is used without restrictions of any kind by various collectives and communities of an environmentalist and activist nature, although not exclusively given that anyone can use it like any other cryptocurrency.
FAIRCOOP AND FAIRCOIN
Faircoop rescued Faircoin (FAIR) from oblivion about 5 years ago and assumed it as the basis of his strategy to create a fairer economy and empower people and ethical communities against the empire of capital. The main idea was to create a community based on ethical and environmental values that extracted resources from the capitalist sphere to move towards a post-capitalist era based on cooperation and mutual support.
The opportunity to make that great leap resides in the finite characteristics of Faircoin (limited units, 53 million of FAIR circulating) that make it a deflationary currency with the capacity to gain value as the community grows, uses and increases the demand for FAIR. To understand this we must realize that this increase in value will always be in relation to other currencies, particularly those issued by the States (Fiat, centralized currencies) of an inflationary nature. This value is determined in the speculative markets in which cryptocurrencies and currencies (Fiat) are bought and sold.
Uniting all the above concepts, we have:
- A community that owns a large part of the FAIR. As this community grows and/or increases demand, as they can not be created anymore, their value increases. The reserves that Faircoop has and all the people who use FAIR increase significantly in value and, thus, Euros, Dollars or Bitcoin can be extracted from the speculative markets with which to create, support and build productive, ethical, self-managed and humanitarian projects that will contribute to a forceful way to improve the world. Therefore, Faircoin is a very interesting reserve of value, capable of empowering the community or communities that believe in its possibilities and work increasing the number of productive projects that accept it and use it as currency.
FAIRCOIN AS A CURRENCY FOR EVERYDAY USE
At the same time that FAIR serves as a reserve of value and means to extract monetary resources from the speculative markets, FAIR has been endowed with a stable value, agreed by the community (Faircoop) so that it can be used as currency within the community with a growing supply of products and services.
THE DOUBLE PRICE DILEMMA
Given the above, we see that Faircoin has a double value:
- The one determined by supply and demand in the speculative markets. Variable value and very fluctuating.
- The one consensuated by the community. Fixed and stable value + the commitment never to lower it and adjust it upwards as the community grows.
Both values are part of Faircoop's strategy. With the first, necessary resources are extracted. With the second, we have our own currency to use instead of the state currencies.
Up to here, almost everything is fine. Except that speculative markets are unpredictable. If both values do not maintain large differences everything will work properly. But if the differences are large due to huge fluctuations of value in the speculative markets can produce two problems:
- Market value higher than that agreed by the community. There will be a leakage of FAIR to the markets and internal trade will tend to paralyze. Many people and especially speculators will prefer to sell the FAIR or will try to get FAIR into the community to sell in the markets. At first, this situation may be good (we obtain resources in other currencies) but this will soon force us to raise the consensuated value of the FAIR. This would also be fine if we did not have to contend, remember, that the value in speculative markets can suffer enormous ups and downs. And let's not forget, moreover, that in the Faircoop assembly it was decided that the agreed value would never fall. Then, sooner or later, we will have to face the second problem.
- Market value lower or even much lower than the community. Anyone can obtain cheap FAIR in the markets and use them within the internal economy at the consensuated value (much higher) with which the purchasing power multiplies. That is not bad either, except that a torrent of FAIR can be injected into the internal economy that will be difficult to absorb.
If we are aware of the real context, the FAIR economy is still small. People also need Euros to cover all their needs. So an avalanche of shoppers eager to spend their cheap FAIR will be devastating. Even more so because Faircoop promised to change the FAIR obtained from sales or legitimate payments to Euros when necessary. A promise difficult to sustain if the situation of low value in markets is prolonged and that, therefore, will end up causing people to limit the amount of FAIR they accept or, directly, stop accepting FAIR. Except, of course, that they can afford to accumulate them without changing to Euros to wait for the cycle to change.
If you have read all the above, you will immediately perceive that we are facing a fascinating challenge. And, of course, in a free-thinking community they will be imagining and developing many ideas to continue advancing in this great project. And here comes the great explosion of creativity. The FAIRCOIN FEDIVERSE is born.
We are in unexplored territory, terra incognita. But human beings have the ability to analyze experiences and modify them with new and ingenious solutions. Before us, there are many paths that are worth exploring. Let's see some of the solutions that are being proposed:
- Faircoop proposes new criteria, more realistic, to request the exchange from FAIR to Fiat to the consensuated value. While the accumulated exchange queue is resolved, new requests are stopped. In terms of technological and logistic development, proposals from different people and groups are being studied to create a layer or sidechain on the main Faircoin blockchain (Fairchains) that allows the creation of cooperative shares and offers this as a service for ethical projects. This development, they say from Faircoop, is at an advanced stage. It has also been proposed build on it a token or additional currency called FairCash that is completely detached from the speculative markets. In this way Faircoin would assume the role of value reserve at market price and FairCash the currency of everyday use with the consensuated value. The Faircoin that people currently have could be changed (all or part) to FairCash which would be the currency that could be changed to Euros at a consensuated price if necessary. Currently, work is being done to make sense of this project and explain it in an understandable way by all and there is not yet an established roadmap for this development.
- Freevision is a concept presented by a part of the community that believes that the consensuated value is not sustainable and, therefore, proposes an algorithm that defines Faircoin's purchase and sale values in a somewhat more stable way. The details can be seen in Faircoin.co.
- Ecofintech is a professional initiative, supported by a good part of the community, which advocates the extensive use of new Blockchain technologies. It is developing two tokens: wFAIR which equals 1 FAIR and also iFair. Among the possibilities are to ensure that FAIR can be bought and sold in new decentralized exchanges (DEX) or also for digital exchanges between people and communities with what, theoretically, would increase the volume of transactions and their value contributing also to make it less volatile. On the other hand, with these tokens (or other derivatives) it is possible to create forms of liquid democracy through DAOs (Decentralized Autonomous Organization) that would allow us to find forms of consensus and decision making that are much more efficient and transparent.
- Decentrale, a community based in Switzerland associated with the local node in the area, proposes to separate Faircoin from any reference or direct comparison with the Euro or another centralized or decentralized currency. And for that purpose it proposes the reference called FAIRO which is a reference of purchasing power. It has been experimenting locally for several years.
- FairChange is an option proposed by La Descapitalizadora, a very active community in Catalonia with a great experience in real economy with social currency and Faircoin, which is extremely simple to implement and has the objective of improving transparency as well as creating and managing decentralized reserves of Euros . Using the widely tested software integralCES, two networks are created: one to keep track of exchange requests and another for reservations in Euros from both global and federated local nodes. FairChange is issued, which is basically a unit of the right to exchange equivalent to 1 Euro that already exists as a reserve. FairChange can be used as payment method (who receives it knows that its value in Euros is insured) or can be exchanged for Euros. When they are exchanged, they are destroyed and the FAIRs that were frozen at the time of issuing them are released. Therefore FairChange is a representation of real and existing Euros + FAIR in the network. This system is already operating experimentally and will soon be fully operational in a network of federated nodes with a high level of mutual trust.
DIVERSITY IS WEALTH
All these ideas are creating a universe rich in possibilities for Faircoin: more communities, more opportunities, more ways to understand and use Faircoin. In Komun we are glad that this supernova has exploded because it will undoubtedly give rise to an extraordinary cosmos, one and diverse. Komun respects and supports the various developments around Faircoin as long as they do not involve any economic setback to the community with abstract roadmaps, opaque accounts and endless lines of work or lacking specific objectives. Particularly we have focused on providing our collaboration to the FairChange project because it represents a net gain in transparency as well as a solution to manage liquidity at a cost close to zero and that can be applied immediately. This does not exclude that we are also supporting other alternatives. We are really open to collaborate with other complementary solutions that seem coherent and meaningful to us, in the same way that we are collaborating with other cryptocurrencies, social currencies, projects and networks. Because the future will be fediverse or it will not be :-)
Exciting times are coming. Do not stop living them!.