The Credit Commons Protocol defines a shared ledger through which participants can account for exchange using a mutually-agreed unit of account (which could be a national currency, hours, or anything else). It can be applied recursively, meaning that ledger groups can voluntarily federate into a nested structure that can be visualised as a fractal-like ‘tree’.
This structure supports trade and decision-making across and between networks, enabling scale and diversity of economic activity without the requirement for centralisation. Groups can therefore remain small, trust-based, and self-governing within a larger, decentralised, yet complex economy of similarly autonomous actors that is referred to as the ‘Credit Commons’. The requirement for exchange rates between groups also means that ledgers can support different but interchangeable monetary instruments within the same community, such as mutual credit and use-credit obligations. The Protocol therefore provides part of the technical and collaborative finance infrastructure necessary to rebuild the commons economy.
The video below introduces the Protocol in more detail, explains the underlying monetary theory, described a theory of change, and explores some of the possible economic implications widespread adoption.