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Why Co-here Locality Tokens?

local tokens

Localisation aims to reduce the out-flow of local economic value, the ‘leaky bucket’, by increasing the re-circulation of money through preference for local trade and investment. Boosting re-circulation even a small amount can have a virtuous ‘local multiplier effect’.

When the owners of properties and businesses are based outside the local region, ‘absentee-owned’, this will continually draw money out of the area. In a similar way, the purchase of imported goods and services means sending payment out of the area.

On the other hand, choosing to buy and invest locally tips the trade balance, which makes a big difference to local businesses, suppliers, trade and employment. Local loyalty reward schemes help people to actively support local economic resilience. Local peer lending and mutual finance is another way to boost the re-circulation of money locally.

Do we really need new digital currencies?

Until recently digital crypto currencies have generally been designed in a way which tends to have a volatile price. This is due to a limited supply, combined with an unpredictable future as to their adoption and growth which influences traders to speculate on price. The limited token supply model was deployed in an early stage of the technology to be similar to commodities with physical scarcity and increase in value with future potential demand and adoption.

Volatility and scarcity are problems

The problem with price volatile and artificially scarce currency is it fails to function as money or useful currency which requires a predictable value of the base unit to allow for stability during measurement and transfer of an agreed value. Without sufficient supply to meet demand when needed for actual use, those able to hoard will be enriched those at the expense of those who need it. Preciousness reduces the utility of a standard meant for broad access and use.

Seeking solutions for a fair accessible currency

(Technical solutions) Recognising the need for stable value, MakerDao has created a stable token called Dai backed by ETH and MKR collateral. MakerDao is working on multi collateral stable Dai which would allow a basket of crypto currencies to support a stable value. An international or global stable value token with a basket of national pegged tokens, tokenised assets, securities and commodities could provide the collateral for a global stable value.

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Co-here local tokens has designed a Fair-for-all Continuous Supply Demand Token (100% ICO Free). When someone buys Local Tokens they are newly issued. The purchase payment is held in a reserve for refunds. Learn more

What stable token model will work best for regions, cities and villages?

We live and do business globally, in our nation, region and locally in our city and village. This can be reflected with a localisation incentive which aims to retain more currency flowing locally than would otherwise occur. The Local Tokens wallet will have an inbuilt incentive bonus to localise tokens and a disincentive fee when taking tokens out of an area.


Note: 1) In order to take advantage of the localisation incentive you would need to spend more than half of your localised Local Tokens in the locality.
2) Merchants are able to de-localise Local Tokens with a reduced disincentive fee (as low as 2.5%).

Yet we live and do business in a larger and more connected world, than just our local village. The facility and ease of opportunity to exchange in wider regions and across borders has to be balanced with the aim of supporting locality. Co-here aims to find the balance which can be adjusted through community feedback, in a shared governance model.

Anti-speculative conversion and exchange

Since liquidity and speculative manipulation are problems for small and value stable currencies, an automated liquidity / conversion network (technically using Bancor protocol relays and Liquality Atomic Swaps) can allow for exchange and conversions without any speculative traders. People will be able to convert between the Local tokens and other tokens in the collateral basket.

Invest tokens as stake for mutual benefit

The primary purpose of Local Tokens is supporting local trade. Since stable tokens don’t provide any additional value when sitting idle, the opportunity to stake tokens in mutual finance will support users to help each other manage cash flow and avoid credit cards which extract value away from users and the local economy. Additionally, Local Tokens can be staked in income generating investments, such as local cooperative businesses and mutually owned assets, which will also help re-circulate value locally. These projects will be facilitated by Co-here, in the second stage of the development roadmap.

Peer lending networks for customers to purchase at merchants, as an alternative to credit cards and similar to an Afterpay scheme, will be facilitated, for low cost friendly finance. read more…

peer lending network

Peer to Merchant lending networks in the form of standardised prepaid subscriptions offers with loyalty reward discounts will be facilitated. This helps merchants access low cost finance and reinforces customer long term relationships. read more…

prepaid subscription with refund option

Aligning incentives for stakeholders

The consideration and benefit of all stakeholders in a venture is the preferred business model to be supported by Co-here’s facilitation. FairShares has developed a model which recognises the contribution of Founders, Investors, Workers and Customers. We could add Suppliers as stakeholders.

Cohesive Community building

Co-here aims to support and grow positive social impact, economically equitable and environmentally sustainable enterprise models. Co-here aims to develop open shared tools and resources as well as facilitating community investment and networking among communities and businesses. Co-here aligns with the values and practices of cohesive community building.

Global while Local

Co-here Local tokens is part of the global open source community, a movement to decentralise knowledge, wealth and power but also recognises the importance of special interest community. Co-here local tokens aims to benefit local clusters and network effects at various scales. The four simplified localisation movements are from global to national, to cities / regions, to villages / suburbs and to the merchants at each of those levels.

The global shared value, surrounding everyone’s particular special interest community and locality, is the facility of a common global value stable token, a common non-speculative exchange network, a platform for everyone to use and be part of, an open source library of co-operative business models and tools, a no-broker peer lending network and a no-brokerage stake investment network.