What If Your Money Expired Every Month?

Encointer introduces a novel monetary system for local cryptocurrencies, where each participant earns basic income through periodic “proof-of-personhood” ceremonies. To prevent inflation, Encointer employs demurrage—a fee that gradually burns inactive tokens—encouraging spending and maintaining equilibrium. Unlike Bitcoin’s fixed cap, Encointer’s model ties issuance to participation and purchasing power within communities, allowing flexible parameters via on-chain governance. This creates a sustainable, egalitarian, and locally responsive economic system.