SOL is not exactly an alternative economy but rather complementary. In this section we try to explain how it works and to present it as the beginning to an alternative economy.
The price of each exchange is fixed by mutual agreement between the two members of the community. When an exchange concerns services or knowledge, is the time spent that defines the value of the exchange. It doesn’t matter the nature of trade (no hierarchy of capabilities). This is the decision of the community but the most widespread is 1 minute = 1 unit of local currency.
Each member starts with 0 currency units. The community, depending on the number of members and volume of exchanges that it has, sets limits above and below. For example if a community set the limit at 400 units, no member can have a balance higher than 400 or lower than -400.
When two new members with 0 balance units make an exchange for a jar of homemade jam for 15 units for example, the buyer, after the exchange, will have a balance of -15 and seller 15.
It is clear that the wealth of this system lies in people and not in the existing monetary units thus achieving local economy and humanized. More people equals higher volume of the economy.
Not at all. Most SOL start with a 0 in all members accounts.
If I paid 800 units to Denis’ bike, my account will be negative. After that, my account will be positive as I go selling my green tomatoes to 10 units per pound.
In the SOL, it is necessary that some members have an account in negative and others in positive.
All the time, the sum of all balances of community members is zero because the wealth is in people.
In order to keep us in the form of aids "non-repetitive ans short-lived", to discourage hoarding tendencies, to avoid too heavy deficits, or that a member does not have too much difficulty in putting their count to zero if left on SOL, SOLs have negative and positive limits to all members balances (ie between -3000 and +3000 units).
If a member reaches the limit, he or she will be asked to re-balance his or her balance.
Debits are a commitment to the group of goods, services and knowledge. In the SOL, trust is born as a moral commitment between the members of a comunity.
In practice, this will be enough for this irresponsible behavior to be rare.
No need. To spend euros you have to have them first. Here with a count of zero, I can start exchanging at any time.
No, because the SOL units are not convertible into euros or euros in SOL units.
No, because it is a local currency that can not be used outside the association.
No, because this currency is not capitalized and there are no interest.
No, it is a mutual aid among members, specific aid, non-repetitive and short-lived.
Practice shows that many exchanges that could not have taken place under usual market, are made within the SOL.
There are not possible secret works because all exchanges are made public and transparent. The exchanges can be checked by any member of the community.
Most of the members of a SOL continue also earning and spending money, paying direct and indirect taxes in their daily lives. SOL is compatible with the current economy.
That's what everyone says! We all have, in addition to our professions, riches to offer: make cakes, provide companionship, learn to board ...
Everyone has talents to share.