Freicoin often abbreviated to FRC is a peer-to-peer (P2P) cryptocurrency based on the accounting concept of a proof-of-work block chain used by Satoshi Nakamoto in the creation of Bitcoin. Freicoin being a fork of bitcoin is often referred to as being an altcoin. Unlike Bitcoin, Freicoin has a demurrage fee that ensures its circulation and bearers of the currency pay this fee automatically. This demurrage fee was proposed by Silvio Gesell to eliminate the privileged position held by money compared with capital goods, which is the underlying cause of the boom/bust business cycle and the entrenchment of the financial elite. Employing the Proof Of Work method of mining coins to generate coins into existence and securing the network, however unlike bitcoins cap of 21 million, freicoin is created in strictly limited amounts according to certain math algorithms implemented in the Freicoin client. The total amount of currency in circulation will smoothly increase for approximately 3 years following launch, until it stabilizes at 100 million coins.

Freicoin Foundation

While the coin is young and the 100 million coins are being generated the reward to the miners will be 20%, with 80% of the reward going to the Freicoin Foundation. This reward for the miners will fall to 5% once the 100 million coins are reached. The Freicoin Foundation is non-profit organization, aimed to support sustainability and biodiversity by means of integrating Freicoin currency into economical relations. Note the Foundation is the only centralized aspect of this decentralized currency


Demurrage is the cost associated with owning or holding currency over a given period. It is sometimes referred to as a carrying cost of money. In the Freicoin case we see demurrage of the coins at 4.8% every block that is added to the chain, until the smallest fraction of a coin can not be divided anymore and your balance is set back to 0. This can be seen by holding a small amount of coins in a wallet offline and then connecting the wallet to update the blockchain and as the block chain catches up the balance of the account holder decreases at about 5%. This stops mass hoarding of coins and encourages distribution and wealth put back in the material goods or services as opposed to the coins themselves.

Builds & Source Code


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