Freicoin

Built on the principles of demurrage and designed to eliminate usurious interest rates, Freicoin is a peer-to-peer digital currency that seeks to re-align financial interests with the stability and well-being of the economy. By incorporating a demurrage fee, Freicoin ensures its circulation and encourages bearers of the currency to pay this fee automatically, thereby eliminating the privileged position held by money compared with capital goods. This approach has been tested several times with positive results, demonstrating its potential to suppress basic interest rates to zero.

Freicoin's technology is based on a proof-of-work block chain, similar to Bitcoin, but with a key difference: it incorporates a demurrage fee that encourages circulation and discourages hoarding. The economics of mining are such that most of the newly minted coins are spent on real capital required to secure the network, driving participation and making it difficult to manipulate Freicoin. This design also enables pseudo-anonymous use for private transactions, fast transfers with low transaction costs, and a predictable, limited, and stable monetary supply.

Freicoin's unique value proposition lies in its ability to stimulate global growth through reinvestment and dis-incentivize short-term thinking. By eliminating the liquidity premium, Freicoin encourages sustainable investments and favors long-term processes. The demurrage fee acts as a tax on stagnant money, forcing holders to spend or invest it as soon as possible, thereby creating a virtuous cycle of investment and consumption. This approach has been shown to result in stable prices, as demurrage encourages circulation and springs a higher and more stable velocity.

The Freicoin project was funded by a public crowdfunding campaign on Indiegogo, demonstrating its commitment to community-driven development. The Freicoin Foundation is a non-profit organization that aims to support sustainability and biodiversity by integrating Freicoin into economic relations. The foundation distributes 80% of the total Freicoin money supply through grants, with the remaining 20% serving as a reward for miners who support the network.

Freicoin's roadmap includes ongoing development and improvement of its technology, with a focus on merged mining to increase security and convenience. As a collaborative free software project, Freicoin shares many advantages over national currencies, including predictability, limited supply, and decentralized control. With its unique features and design, Freicoin is positioned as a viable alternative to traditional currencies, offering a more equitable and sustainable financial system.