c:lets [Knowledge Commons]

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//(one of the [[c:start|concepts]] in our Knowledge Commons)//

===== LETS =====

**NB, this page is still under construction**

The term //LETS// is used to refer to a zero-sum, interest-free, mutual-commitment/-credit community currency system. 

//LETS// is often used as an acronym for //Local Exchange Trading System// or //Local Energy Transfer System//.

==== The variety of definitions ====

  * The essential characteristics of the original //LETS// model (presented to [[wp>TOES]] are described in the [[https://archive.lets.net/gmlets/design/home.html|LETSystem Design Manual]], and include the requirement of metrical equivalence to the fiat money in use locally. It also requires an understanding from each user that a //payment// in this local currency represents both a record of an exchange agreed by two parties and an an unenforceable undertaking to contribute services or goods agreed to be of comparable value back to the network/community of users. This is the interpretation of //LETS// and //LETSystem// on which the broader concept of [[open money]] is built. Because the model was propagated widely but incompletely with unsanctioned variations, term //LETSystem// was put into the protection of [[https://letsystem.org/|The LETSystem Trust]] in 1997.

  * A looser interpretation of the //LETS// model propagated widely and quickly in the 1990. Many such groups experimented with variations such as demurrage, interest, credit limits, elastic "system accounts", quirky names, units not metrically-equivalent to the local fiat money, and conflation of the concept of //commitment// with debt, none of which are compatible with the original //LETS/////LETSystem// design. More often than not, the term "LETS" is used to refer to this broad collection of variants.


==== Key topic pages ====
Topics where the LETS concept is mentioned: 
  * [[cofi:collaborative finance]]
  * [[lcur:local currencies]]
  * [[mucr:mutual credit]]
==== Related terms and definitions ====
  * The [[https://archive.lets.net|LETSystem archive]] provides a wealth of useful material.
  * An early but helpful description of the //LETSystem// is provided by Bill Mollison on pp.535-536 of //The Permaculture Design Manual// (Tagari Press, 1988, 1992). 
  * The Wikipedia page on [[wp>LETS]] repeats a number of historical errors.

==== Commentary ====
//(Please sign all commentary.)//

==== Open questions ====