Description
Encointer is a decentralized digital platform and Swiss association that empowers local communities, particularly in economically deprived areas, to create their own currencies and distribute them as a universal basic income. The system is designed to combat recession and hyperinflation by increasing local liquidity and keeping money in circulation through a demurrage feature, which discourages hoarding. It operates as a common good parachain on the Kusama network and utilizes a unique Proof-of-Personhood protocol where participants attend regular physical key-signing events to verify their identity without requiring state-issued IDs, thus preventing fraud. This fosters a community web of trust and makes the system accessible to the unbanked. Encointer provides a protocol and app for Web3, enabling communities to manage common funds and foster self-sustaining economies, with active projects in locations like Zurich (LEU), Zaria, Nigeria (PayNuq), and Dar es Salaam, Tanzania (Nyota). The platform is aimed at community leaders, NGOs, and local governments, providing tools to bootstrap new currencies and partner with local businesses to create utility.