The Community Banking System
Last updated
Last updated
There were two main monetary systems prior to the Lumin project.
The first one is the traditional central banking system. In such a system, a small group of central bankers would convene and vote on a range of issues, to make the monetary machines go hand in hand with the real economies. However, there could be a lot of agency problems, as the people who control the system may favor some than the general public.
The second one is the algorithmized traditional crypto system. The core idea of the system is to have pre-programmed deflationary tokens (bitcoin, eth, doge etc), coupled with pre-programmed mining/staking etc awards for the foreseeable future. However, the deflationary mechanisms could be very bad for consumption/production in an economy. Also, they would hurt the tokens' transaction usage in the long run, as a money spender would want to spend an alternative, ceteris paribas. (Just like you wouldn't want to pay back govt debts in gold, if you could pay dollars.) As a result, the tokens might become more of a storage of value, than a transactional medium with such a monetary design, and ultimately lose valuation.
Lumin develops the third alternative, the community banking system. It enables monetary changes, within a reasonable limit, but any changes would always be transparent and be determiend by the Lumin holders. It combines the best of two old worlds with none of old problems. In essence, it is a community banking system, which could serve humanity's monetary future well.
The main purpose of Lumin is to serve as a currency, and so there wouldn't be too frequent voting and monetary changes. (Though the frequency could be changed via community voting, too.)
Every year, around June 9th, Lumin's annual voting session would start semi-automatically, witout designated admins. Anyone could then propose, vote on chain without being censored. The selected policies could then be executed by anyone to set into motion.
The whole system offers the community monetary autonomy. There are safety mechanisms to prevent vandalism and malicious voting, but there are no special entities or roles.
The voting general UI and forum are still being built. They will all be ready before the first community voting session.
