A New Approach to Social Money

In an increasingly digital world, the concept of money and how it functions within society is rapidly evolving. Traditional (fiat) currencies often fail to address the nuanced needs of diverse communities, leading to economic disparities and limited financial inclusion. This is where Circles, a social money system, offers a fresh perspective. Designed to foster local and global economic participation, Circles leverages blockchain technology to create a decentralised monetary system, rooted in community trust and interaction.

The Circles way

At its core, Circles operates on a unique model where each participant issues their own personal currency, known as CRC tokens. Upon joining the network, individuals start generating CRC tokens at a steady rate of 1 CRC per hour, providing them with a continuous, stream of income.

A distinctive feature of Circles is its trust-based model. Unlike traditional currencies that rely on centralised institutions, Circles utilises a decentralised approach where people must trust each other's CRC tokens to engage in transactions. This trust forms a social graph, with the utility of one's currency being directly influenced by their network of trusted relationships. This innovative design mitigates risks such as sybil attacks and ensures that the currency flow is grounded in genuine social connections.

To counterbalance the regular CRC issuance Circles incorporates a demurrage mechanism—a system where a small percentage of CRC tokens are regularly destroyed. This discourages hoarding and encourages the active circulation of currency, aligning with the principles of a circular economy. Additionally, the option to pool CRC tokens into group currencies provides communities with a means to collectively manage and reflect their economic activity, enhancing stability and simplifying transactions.

Moving on at the protocol level

As part of our commitment to continuous improvement and adapting to the needs of our community, we’d like to spend some time introducing Circles V2. This updated version of Circles contains several updates aimed at improving the overall Circles experience.

One of the standout features of Circles V2 is the refined trust graph mechanism. This update provides more detailed controls, allowing everyone to set and adjust trust levels with greater precision, giving communities more flexibility and security in managing their own economic interactions.

We've also made significant improvements to the CRC token issuance process. Circles V2 streamlines token generation, ensuring more efficient distribution and minimising potential network bottlenecks. This is particularly important as adoption for Circles grows, requiring a reliable system that can support increased participation without sacrificing performance.

Additionally, Circles V2 introduces improved integration capabilities, making it easier for third-party applications and services to interface with the Circles network. This opens up new possibilities for developers and entrepreneurs to create innovative solutions that leverage Circles’ unique features, further expanding the ecosystem.

We’re also working to make it simpler for third-party applications and services to connect with the Circles network, opening the door for developers and entrepreneurs to build solutions using Circles' unique features, further enriching the ecosystem.

This is not exhaustive but we’ll explore more details of V2 in later blog posts!

A new way of doing things

Circles represents more than just a currency; it is a movement towards rethinking economic systems and fostering inclusive financial practices. By placing trust and community at the heart of its design, Circles challenges traditional economic models and offers a new narrative centred around social money, reflecting our existing societal bonds. This approach emphasises the value of mutual support and the importance of decentralised systems in creating resilient and equitable circular economies.

For more information on Circles and how to get involved visit our website, follow us on X, join our Telegram community or subscribe to our monthly newsletter.

Join our community and be part of the future of social money!