In the original description of Circles we already described “group currencies”.
I still believe group currencies are an important addition to Circles core concept.
The simplest implementation would define another Ethereum address as a “group owner”. This addess does not need to be a single owner (EOA) but could be a multsi-sig a DAO or really any other possible set of rules. The rules could be even based on the Circles trust graph and thus implement rules similar to Duniter.
The right of the owner would be to add or remove Circles account to a “member list”.
Now anyone that holds Circles from someone on the member list could call a minting function of the group contract that takes personal Circles (possibly also via transitive transfers), puts them into the group contract and mints an equivalent amount of group Circles.
In contrast to what was written in rule 12 I would today advocate to give holders of the group currency the option to redeem it against personal tokens that contract holds.
If wanted it would be much easier to establish a market price or a minimum value for those group currencies as they could easily be traded e.g. on a DEX (like Uniswap, bonding curve) or other rules that would allow to exchange those tokens against other assets including tokens that represent fiat currency. Theoretically that would already be possible with individual Circles but practically each individual Circles has to little value to establish a market price for it with current DEX tools.
For business it would also dramatically increase the practicability to accept Circles if they accept one kind of token that even might have a clear defined value (market price) compared to fiat currency/ the currency they need to pay taxes. Besides accounting considerations accepting individual Circles is generally more risky as they are more likely to become unspendable.
Examples for groups
- Everyone with a verified Twitter account
- Everyone in Berlin, voted in by existing members
- Everyone run trough a identification (KYC) process with something like Fractal
- A group of people that commit to use Circles in a specific way
- People that have contributed to Circles as a project…
- Busnisses (the people involved in those) in Berlin/…