Understanding Personal and Group Currencies

In Circles, money is generated collectively by many individuals over time rather than by a central authority at specific events.

When you become part of circles network, every person has their own personal Circles token and receives one Circle (CRC) per hour, unconditionally.

The trust network forms a social graph where each trust relationship acts as a link, allowing tokens to flow between individuals through these connections. This ensures that the value of Circles is supported by genuine social relationships, fostering a community-driven economy.

At the same time, this mechanism is an effective Sybil protection, as it decentralises the verification process and relies on human judgement for trust, preventing fake accounts from compromising the network. Since the connections between Circles accounts have a limited capacity (defined by their balances of fungible tokens), this limits the impact of fake accounts that manage to get trusted by a credible member of the network to their direct surroundings.

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