Hello dear people! I'm not a native speaker, so please excuse me (use deepl which demurrage currency translates as "fading money"... ) . It's about the concept of so-called "fading money", I don't know if you've heard of it before. Here a Wikipedia article about it
https://en.m.wikipedia.org/wiki/Demurrage_(currency)
I can't go into the exact economic background in detail for a long time now, but it is based on the fact that an incentive is needed to make money circulate in the economic cycle as much as possible and to enable the chain of exchange of goods. If you hoard the money and put it aside, it is taken out of circulation and the economy collapses if there is too much. Today the interest rate fulfills this task of securing the circulation of money, but it has many destrutive characteristics, about which I don't want to talk anymore due to lack of space.
Anyway, twice in the history of mankind there was at least one successful experiment with shrinkage money as an alternative to conventional money. And the more time passes, the more the value of the money loses so that the owner of the money has an incentive to bring the money back into the economic cycle as quickly as possible before it loses value. Once in the High Middle Ages there was this in the form of the so-called bracteates in Europe and as a result it had an enormous economic bloom! Some historians see the fading money of the bracteates as the real cause for the flourishing of the European High Middle Ages.
And then in 1932 in Austria in Wörgl we had successfully tested the so-called miracle of Wörgl money experiment with shrinkage money.
So my question is, how about transferring this idea of shrinkage money to a crypto-currency to a block-chain-based currency?
At first, this idea felt unbelievably evolutionary to me and maybe my phd thesis is going about that, but I would like to engage in a critical exchange with you and am very receptive to criticism and suggestions. Thank you very much!
Translated with
www.DeepL.com/Translator (free version)
