Geo-Weighted or Geo-Fenced Proximity Currencies

Discussion

Via ChatGPT:

"There are local currencies designed to incentivize local transactions by making nearby exchanges more valuable than distant ones. These are sometimes called "geo-weighted" currencies or "proximity-based" currencies."

The techniques used may be the following:

• Geofencing / Acceptance Limits: The currency can only be used within a restricted region.

• Bonus for Local Transactions: Discounts or added value for transactions within a certain distance.

• Blockchain Smart Contracts: Automatically taxing distant transactions or rewarding close ones.

Examples

• The digital version of the Bristol Pound allowed geo-fencing transactions, restricting them to Bristol-based businesses

• Some new crypto projects (like those inspired by Michel Bauwens’ commons economy models) propose using blockchain to track transaction distances and apply a tax or bonus based on how "local" a transaction is.

Encointer

Concept: Encointer enables communities to create their own digital local currencies to boost local economies.​

URL = https://www.encointer.org

Geo-Weighted Incentives: The platform emphasizes local interactions by requiring participants to attend in-person key-signing ceremonies within their community. This physical presence ensures that the currency remains community-focused and supports local economic activities.​

Blockchain Integration: Utilizes blockchain for secure and transparent transactions, ensuring that the local currency operates efficiently and with integrity.

HullCoin (UK)

– Blockchain-Based Community Currency

Concept: HullCoin is a digital community currency designed to stimulate the local economy by rewarding positive social behaviors.​

Geo-Weighted Incentives: Participants earn HullCoins through community service or healthy activities, which can then be spent at participating local businesses, ensuring that the currency circulates within the community.​"