The fundamentals of LETSystems
The LETSystem is designed to deal with the problems associated with conventional money, and is defined by three underlying considerations:
The principle of community refers to a finite group of people who decide to participate in the system. It also requires that nobody can claim or exert ownership.
The money created within a LETSystem is personal in that it is created by the promises of the participants. The consent of the individual is required at all times. No third party can have control over the money and the money cannot leave the system.
The LETSystem differs from other personal money networks by adopting a practical stance. The unit of measure has the same value as the national currency, so allowing the local money to integrate into the mainstream economy where it sets up beneficial cycles within the community.
A personal money network that adopts all the above criteria and agreements is a LETSystem.
Written by Michael Linton of Landsman Community Services Ltd.
Version #003 27-7-96