Community Currency: Zero reserve mutual credit and adjustable parameters

A healthy economy needs credit. Businesses need credit to survive changing economic conditions. If we are going to go beyond bitcoin, traders, and speculators we need a participatory credit system that enables a vibrant economy.

Community Currency aims to solve this. It's a network of smart contracts that provide a credit currency named HOUR (HR). The community governance body is known as the Commune. In this smart contract "bank" credit is available to all and the ability to issue credit is available to all. There are zero reserves and the cost of credit is priced by the market.

Members can create money by issuing credit to other members. Their ability to do this is determined by their reputation in having the debt repaid. Upon returning payment, the money is destroyed. On default, the debt is assumed by the creditor and both parties have their reputation lowered. Because money is created only by loaning, and money is only destroyed only by repayment, there's a built-in drive towards zero money supply while at the same time the supply grows to accommodate the needs of its users. This currency resembles the federal reserve system and its bank network, but without the centralized access to credit.

That's just a brief overview. There are more details like collateral, interest, governance, etc. that are explained here http://desperado-theory.blogspot.be/2014/06/p2p-to-b-credit-contract.html

dapp: http://desperado-theory.blogspot.be/2016/03/poc-community-currency-ethereum-dapp.html