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[Alliance] Freihour - For unit of account - Discussion

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Hi All,

here is an proposal to use in bounties, loans, donations, basic income project and other projects that need an more "stable" unit of account an new unit called Freihour.


The Freihour is intended to be used if we need some more stable unit of account.

An Freihour reflects an average working hour and is currently defined as purchasing power of round about 10 Dollar on 2014/12/06.

As time comes inflation will be calculated in it, therefore the related Dollar / Freicoin value may increase in case of inflation or decrease in case of deflation.


Currently (2014/12/16) an Freihour equal round about 5000 Freicoins. 

If an Freihour becomes more worth then double the initial purchasing power we can set an Freihour to 2500 Freicoins and so on.

If an Freihour becomes less worth then half the initial purchasing power we can set an Freihour to 10000 Freicoins and so on. 


Later if needed we could automate this process.


To use the Freihour is currently just an experiment, so feel free to take part!


Best regards,


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  • 3 weeks later...

Bravo Arcurus!
The unit of the future is a global index rather than an actual currency. And Freicoin doesn't need to be a good unit of account to be a great medium of exchange and cheap currency in lending terms.
We've talked about similar concepts before under names like GRU (Global Reference Unit) or TRU (Trade Reference Unit, inspired in Bernard Lietaer's Terra or Trade Reference Currency).
I talked to Thomas Greco (http://en.wikipedia.org/wiki/Thomas_H._Greco,_Jr. ) about this and he had the same idea long ago, and tried to convince Lietaer that an index rather than an actual "backed" currency it's what's needed.
An index can contain any number of commodities or even services in its basket because you don't have to store them to "back" a currency.
Given a basket formula and a set of markets APIs that the formula is based on, it is quite trivial to create a converter from TRU to any actual currency like FRC, BTC, USD, EUR, etc.
So the challenge is to actually chose the markets and their weighs in the TRU formula.
In FreiHours' case, there's only one "market" you have to look at. I assume you're thinking about using the federal reserve official inflation statistics. Many people claim they're quite manipulated (see http://www.shadowstats.com/alternate_data/inflation-chartsfor example), but that would be something simple to start the experiment and it is still more stable than the USD itself by definition.
We could make a bounty for the converter once the the FreiHours index is more formally defined.

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yea, we can start with something easy to calculate the dollar inflation :)


By the way,  am currently reading Debt; the first 5.000 years


He shows, that it is just not true, that before money there was barter.


Instead he showed, that before money was there, debt was there.


And people just used some unit of account to count the debt in.


By the way, Terra would have been a great name for Freicoin...

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Just some quick comments :)

I agree / also think that the federal reserves statistics are totally skewed :P But I guess they still could be used for starters if needed.

I also would see it more probable that there were no barter or a value measurement before "money" was invented ;) This is something that is ~promoted by Ubuntu Liberation Movement too.
Of course, there probably was some kind of record keeping between individuals or groups when needed.. something like "I help you for 9 hours today to finish building your house, you'll help me in the next week for 9 hours with my farming". I guess that could be called debt :)

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  • 3 weeks later...

"Debt; the first 5.000 years" Very good book indeed. I read it end of last year. But he is not into demurrage. He prefers the debt cut at certain points of history. Maybe he never heard of demurrage which is much better because of the stable redustribution of wealth.


The hour is a very good measure for work because it is universal! Also used by the minuto initiative. I totally agree with that measurement.



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