The token is the proposed local currency of the Local Economic Direct Democracy Association (LEDDA) framework, under development by the LEDDA Partnership 1. The LEDDA framework, or synonymously, LEDDA economic direct democracy, is a local, parallel economic system that synthesizes a host of local, open, and participatory approaches to make them scalable, efficient, secure, stable, and user-friendly.
The LEDDA framework builds on ideas from buy local, invest local, local currency, local food, local sharing, smart city, open source, open government, open data, socially responsible business, participatory democracy, and other community development, knowledge transfer, data sharing, and decision-making initiatives.
Tokens are created by a LEDDA in a debt-free fiat process and circulate in parallel with a national currency. Flows of both are managed through the Token Exchange System (TES). The TES is an integrated monetary/financial system. One component, the Crowd-Based Financial System (CBFS), engages the LEDDA membership in funding decisions via a novel form of crowdfunding and participatory budgeting. The CBFS consists of loan, subsidy, donation, and nurture arms. The first three provide interest-free, zero-cost financing to local for-profit and nonprofit member organizations. The nurture arm provides income assistance to members who are unemployed or not in the workforce.
A computer simulation model has been published in the International Journal of Community Currency Research that illustrates token-dollar flow in a virtual US county. 2