The Local Economic Direct Democracy Association (LEDDA) framework, in early stage development, is a prototype local economic system (social choice system) based on the 2014 book Economic Direct Democracy. It is intended to help communities reinvent themselves as strong, resilient, robust, and prosperous. See the glossary for a more complete listing of terms and abbreviations.
The LEDDA framework has eight components:
Token monetary system (TMS), by which a LEDDA creates and destroys tokens as required to regulate token volume and value.
Crowd-Based Financial System (CBFS), by which a LEDDA funds local organizations.
A local market system in which organizations compete and cooperate to provide goods and services to consumers and clients. The market system includes the Principled Business (PB) model. The integrated TMS, CBFS and market system is called the Token Exchange System (TES).
A property rights system that assigns ownership and use rights for physical, intellectual, and other types of property. Property rights follow national norms but differ in that: (a) Principled Businesses participate in an intellectual property (IP) pool, or commons; (b) restrictions apply on the sale of Principled Businesses and transfer of their assets, not unlike restrictions that apply to nonprofits; and (c) the LEDDA framework is highly transparent.
An incentive system that encourages cooperative or otherwise desirable behavior. It includes: (a) a reputation system that recognizes reputation as a form of social currency; (b) education programs that encourage beneficial social norms; and (c) wellbeing indexes that measure the effectiveness of a LEDDA in improving collective wellbeing.
A governance system that regulates the preceding five components. The proposed system of governance, called the Collaborative Governance System (CGS), incorporates an online form of collaborative direct democracy.
Formal and informal models. Computer and theoretical models that describe how a LEDDA functions and that assess and forecast resource and wellbeing status.
Purpose. The purpose of a LEDDA is to help a community focus on and solve (or successfully address) problems that matter, leading to elevated collective wellbeing.
The LEDDA framework is a sophisticated local economic system that aligns motivations for economic behavior with a more realistic understanding of human nature and needs. It can be understood from different perspectives as:
In concept, a LEDDA is a (nonprofit) membership-based organization, similar to a civic club. Individuals, businesses, nonprofits, and other groups voluntarily choose to become members, at no cost. Every person or family that joins a LEDDA sees an increase in income. As such, one can say that a LEDDA pays people to join. A LEDDA could form with as few as roughly one thousand interested individuals and businesses. Computer simulations based on local conditions help inform potential members about expected benefits.