ABSTRACT. Abstract:

In some mutual credit systems there is a central account often called the administration account. This account may enable the creation of funds that could pay for things such as needed works for the community, in this way rewarding volunteering initiatives. However, sometimes these funds could be perceived as undesirable “debt”, therefore, volunteering efforts find an obstacle to be further developed. This article offers some analysis about the fund’s generation power and intends to guide this power towards positions of safe self-funding and sustainability of the mutual credit system. The central point to do so is a mathematical equation that can be applied to certain mutual credit systems. This has been called by the author the Sustainable Self-sufficiency Limit (SSL). The result suggests safe parameters for funds to be generated without negatively affecting the system of exchange. This idea comes from practical problems based on a real case affecting the community of exchange of “La Bellota” in Guadalajara, Spain.

SSL= AU×+C ÷2

SSL = Sustainable Self-financing Limit.   AU= Active Users.          (+)C= limit of credit.

ABSTRACT. Our paper discusses the architecture of the Hudson Valley Current (HVC), and maps its small but growing local complementary currency, the Current. Established in July 2013, the HVC is both a clearing house for its members and an issuer of currency in its own right. The HVC uses Currents to finance its own operations and support non-profit businesses and events in the area. This expenditure by the exchange can be considered "sound" because HVC owns and operates a free local magazine with 20,000 readers and redeems its local currency for advertising. This business centric model of currency issuance allows the HVC to pursue social goals and promote new network connections amongst members. We are adopting tools that will help us manage our network better and increase currency circulation and social impact for the broader local community.