If the new system allows for quick and easy micro-payments, it may well fill a real need that is not well served by the banking system and even on-line payment systems today. If it allows for user-generated content to be rewarded, it will have a business base from which to eventually expand into (or attract business from) more mainstream endeavors.

By the way, the fact that there is a system of exchange that has its own currency does not mean necessarily ‘monetization’ i.e. commercial motivation changing the way content is generated. But also, there is nothing inherently wrong with rewarding the efforts of people to produce something others will like to use.

Having the mechanism for collecting a fee on outstanding monetary mass, the system has potentially a very useful feature, which puts it on a course that is quite contrary to today’s money systems. The fee allows the possibility of providing a periodical distribution of money units to all participants. Since the charging is done as a percentage, and the distribution is done in equal amounts for all participants, the trend of this is to push money down to where it’s needed – the consumer level – instead of accumulating it at the top, which is what today’s money does.

I see great possibilities for this one. The system could start out as an internet payment system that allows the ‘long tail’ of content to be rewarded in some way, but it could also attract more mainstream business once it’s up and running, just like other such currencies have done ( bonecone mentions the Chinese QQcoins ).

Michel

Thanks for your comments. It’s true that profit can change the social dynamics of a community but I still don’t think it would necessarily crowd out voluntary creativity. The nature of the monetization could be the problem, not monetization itself. For example usury-based money causes exponential debt and artificial scarcity. Its flaws and limitations alter and limit the social dynamics of human beings.

My own project is modeled on the example of Wörgl stamp scrip wherein the currency depreciates over time. Fresh content has to be continuously contributed, which is then rewarded by placing more currency back into circulation to replace the currency that has left the system. It mimics biology.

It won’t lead to competition for a scarce resource because the resource is infinite. Social bookmarking and the categorization of content under an evolving variety of creative methods that depend on subjective judgment can never be exhausted. It also has generalized benefit sharing in the form of a unique search engine that everyone can freely use.

I also mentioned the QQcoin in my post. This virtual currency is packaged with one of the most popular instant messaging programs in China and was meant to be used as a way for friends to buy virtual gifts for each other. But individuals and companies have started accepting QQcoins as direct payment for their products and services. There is even speculation that it could affect the value of the Chinese yuan.

It will take some trial and error but I believe alternative currencies can be successfully integrated into online communities over time.