The Commons Currency (referred to as "Commons Unit" or CU) will be a digital currency recorded on a global blockchain ledger. The issuance and distribution of CUs are engineered to promote fairness and global adoption while ensuring no country is disadvantaged by timing of participation.
At the launch of the system, a fixed supply of Commons Units will be allocated to all countries of the world in predefined shares.
One approach is to allocate an equal base share to each country from the genesis block, underscoring equality among nations. For example, if 200 countries are considered, the genesis supply might be divided into 200 equal nation accounts.
This equal allocation reflects the core principle of sovereignty regardless of economic size. A small island nation receives the same genesis allocation as the largest economy, reinforcing that Commons Currency is about democratic coordination, not economic dominance.
These genesis allocations remain reserved for each country to claim when they formally join the Commons system. If a country is initially not participating, its allocated CUs are held in escrow (unspendable) on the ledger.
When countries opt in, they "claim" their share (through their delegate or central bank), bringing those units into circulation under that nation's control. This ensures no country is left behind; even smaller or late-joining nations are not disadvantaged in initial monetary resources.
A fundamental fairness mechanism addresses a critical challenge: What happens to countries that haven't joined yet when active members make monetary policy decisions?
Imagine 100 countries join in Year 1, each receiving 1 million CU (100 million total in circulation). Over the next 5 years, these active members vote to expand the money supply by 5% annually to support global economic growth. By Year 5, the circulating supply is ~128 million CU.
Now a 101st country joins in Year 5 and claims its genesis allocation of 1 million CU. Problem: Its 1 million CU is now worth only 0.78% of the total supply (1M / 128M), while the original 100 countries each have ~1.28 million CU (1.0% of supply). The late joiner has been diluted by 22% through no fault of its own.
When active member countries make monetary policy decisions (such as coordinated money supply expansion), the escrowed allocations of non-participating countries are proportionally adjusted to maintain their relative share.
How it works:
This mechanism is enforced through smart contracts that automatically adjust all accounts proportionally whenever the governance assembly approves money supply changes. No nation is penalized for timing of participation.
The principle is simple: late-joining countries should receive their fair share of global monetary policy decisions made in their absence, preserving the fundamental equality of sovereignty.
Nations have the ability to issue Commons currency aligned to their domestic economic needs—similar to how sovereign currencies function today, but with democratic global guardrails.
In practice, the governance assembly agrees on formula-based limits for each nation's net issuance, often inspired by Keynesian quotas:
A country can expand its money supply for domestic investment (healthcare, infrastructure, education) up to agreed thresholds without requiring special permission.
This preserves national fiscal autonomy—governments can create money for stimulus or investment at home—while protecting global stability through transparent, code-enforced boundaries.
The principle of "national fiscal autonomy with guardrails for global stability" is enforced by code:
The overall supply of Commons Units and inflation targeting are managed collectively by the governance assembly.
The assembly might set a global inflation target (e.g., 2% annually) and adjust baseline currency supply growth accordingly. This could be implemented through:
A defining feature of Commons Currency is that inflationary impact is assessed BEFORE currency is created, not after. Every issuance proposal undergoes rigorous economic modeling to evaluate its effect on price stability.
The assessment process includes:
This predictive approach fundamentally differs from current systems where central banks primarily react to inflation after it appears in price indices.
Given the principle of "inflation control without austerity," the system allows controlled expansion of money supply to meet global demand, without imposing draconian measures on individual countries.
For example, a built-in algorithm could expand supply at 2% annually allocated to countries, unless the assembly votes to change it in response to economic conditions. The real-time transparency of the global ledger, combined with predictive inflation modeling, enables proactive management rather than reactive crisis responses.
All currency issuance is recorded on the blockchain:
This transparency prevents manipulation and allows citizens, economists, and regulators worldwide to verify that the system operates fairly.
Countries joining early might receive incentives:
Countries joining later are protected:
Countries that choose not to participate:
No Nation Left Behind: Proportional adjustment ensures timing doesn't create winners and losers
Fiscal Autonomy: Countries can issue currency for domestic needs within democratic guardrails
Transparent Limits: Smart contracts enforce agreed rules automatically and visibly
Democratic Control: Assembly sets monetary policy, quotas, and inflation targets collectively
Equal Sovereignty: Genesis allocations reflect principle that all nations are equals