A first look at how we are reinventing money, moving issuance into the hands of the people, creating a decentralized currency framework built for a borderless, global economy

If you run a community, organization or a group - you can become a launch partner. DM Circles to know more https://xcancel.com/aboutcircles/status/1892609499753582775

For whom is interested, there is quite a heated discussion between Martin Köppelmann and Ameen Soleimani. Ameen posted yesterday that ‘Circles is retarded’. They organized a space that has just ended where Köppelmann is ‘ready to prove him wrong’. Sadly the space ended with Soleimani getting rude. What didn’t help the discussion is that Köppelmann‘s German accent finding English words versus Soleimani’s fluid English American creates an unequal balance. Next time maybe in German ;)

Soleimani’s initial post: https://xcancel.com/ameensol/status/1892190530995441715?s=46

Replay of the Circles space that followed: https://twitter.com/i/spaces/1ypKdZDYemvJW

I mostly agree with Ameen.

I have tons of respect to Martin, but I think focusing on pushing Circles so much when Gnosis has real products that are growing is a waste of his precious time.

I said a few months ago on Kiwi:

was at Martin's talk about Circles and although I like the idea, I have a question that might be hard to answer at this point, but I will ask it anyway..

understand why all Circles have the same monetary policy. It's easier to manage and interoperate. But can it actually work for different micro-economies?

he way currency supply works in the real economy is that it's tied to the economic output.

f the country produces a lot of value, we can print more currency without causing inflation because there are many things to spend this money on (a bit oversimplifying here but that's the gist of it). If we have a small economic output - like in COVID where supply chains made it hard to ship things to spend money on - printing money can cause a high inflation.

ow does it relate to Circles?

Well, let's say I have a Circle A. I invited my friends and we love it! I pay with CRC for renting my friend's car, he pays with CRC for me delivering him groceries, the other friend even starts a garage sale where we can buy stuff with CRC. Nice!

f we continue growing our community, the Circle A issuance rate would eventually be too low. We'd not have enough CRC to pay for things, especially if a friend after garage sale just gets most of the supply and doesn't want to spend it yet.

Then there's a Circle B, where only a few people actually use this currency, and the 'economic output measured in CRC' is much lower. For them, on the other hand, the issuance rate might be too aggressive, effectively inflating the money they earned.

Not sure how to solve it by having a flat issuance fee. But maybe we don't need to fix it because Circles bigger idea is focused on something else? Idk, would love to have Martin in the comments here.

Maybe Circles are a genius idea and Martin just can't communicate it well. Or maybe they need to iterate on it. But as of today, it doesn't make any sense to me. And I'm saying that with sadness because I think Gnosis is doing a lot of great things and seeing their CEO being nerdsniped by a dead-end street idea is not something I want to see.