RLCkreds

RLCkreds is a regional community credit system that issues digital credits called kreds for use within participating local networks. The system aims to promote local commerce, financial inclusion, and resilience by enabling residents and small businesses to transact without relying exclusively on national currencies.

Origins and scope: The concept emerged in the early 2010s from cooperation among local nonprofit groups and small business associations across several cities. The project matured into a digital platform that tracks kreds balances, transfers, and redemptions on a shared ledger, with governance rules encoded in smart contracts.

Economics and issuance: Kred are issued by a regional cooperative, with limits tied to community funds and member contributions. They can be earned through time-banking, service exchanges, and purchases with eligible merchants. Redemption can be for goods, services, or discounts at participating outlets. Fees are typically modest and transparent.

Governance: RLCkreds operates through member assemblies and a board elected by holders. The platform uses consensus mechanisms to approve new merchants, funding rounds, and policy changes. Audit and compliance features are included to ensure accounting integrity.

Impact and criticism: Proponents argue that kreds strengthen local economies, improve liquidity in small businesses, and provide an entry point for unbanked participants. Critics raise concerns about regulatory compliance, liquidity risk, and complexity for ordinary users.

See also: Local currencies, community currencies, time banking, digital ledgers.