Local Exchange Trading
System (LETS)
at Los Angeles Eco-Village (updated 3/28/09)
LAEV LETS User Guide
What is LETS?
The Local Exchange Trading System (LETS) is a community based cashless economy; a powerful tool which allows members of a community to advertise, finance, and co-ordinate their affairs easily and equitably.
A LETSystem functions like a cashless local currency which is created every time a transaction occurs. When a member has a negative balance they are not in debt to anyone, but only in commitment to the LETS community as a whole, whereas the community has a commitment to meet the needs of a member with a positive balance.
Michael Linton, who started LETS in British Columbia in the 1980’s, defines a LETSystem as: “a self-regulating economic network which allows its members to issue and manage their own money system within a bounded system. Its essential characteristics are:
LETS is an indirect barter system. In traditional barter if you want to trade with someone, you have to be able to offer a product or service that they want. In indirect barter, you are accountable to the LETSystem as a whole, rather than the individual you are trading with; the balance of give and take is kept within the LETSystem. For example, if Mary wants Bill to work on her garden, Mary can pay him in LETS credits. Bill can then get a massage from Fred, who gets piano lessons from Jodi, who baby-sits Mary’s kids.
A LETSystem provides a listing of goods and services offered or requested by its members and records the transactions among its membership using an interest free credit system where one credit is roughly equivalent to one U.S. dollar. The LAEV LETSystem is using a software program called Cyclos to maintain its listings and record transactions.
Why LETS?
LETS promotes the addition of products and services into one’s life that they cannot normally get in the traditional economy. It allows people to get help from their neighbors when they lack cash. It offers a market for people who are learning a skill and are not quite ready to compete in the traditional economy.
LETS helps communities by creating a way in which people can get to know their neighbors. In this regard, it also keeps things local, allowing people to meet their needs within their local community.
LETS also addresses poverty by allowing people to have access to local goods and services on credit, without interest payments or a fixed repayment schedule. Because those who provide the goods are "paid" immediately, there is no loss to anyone should someone not be able to immediately repay or discharge their debt to the system. Getting out of debit is as easy as checking the listings to see if there are opportunities to meet someone else's need, contacting them, and offering it to them.
Basic overview of the LAEV
LETSystem
The LAEV LETSystem is managed on an online system called Cyclos. To join the
LAEV LETSystem you first need to get an account (see “how do I join?” below).
Next, advertise services and products that you want to offer and services and
products that you would like to receive (see page #3). People in the system
then contact each other about services and products they would like to trade
(see page #5).
What can I offer?
You can offer anything you might in the traditional economy as well as services you might not usually offer. For example, if you are currently enrolled in massage school, you might not be able to sell your services in a spa, but you can offer your services in the LETSystem at a discounted rate. This allows people to get massages at a discounted rate, while giving you the opportunity to gain practice.
Or, maybe you’re an amazing cook, but you don’t have the desire to become a chef or open up a restaurant. You may, however, really enjoy cooking for people on a more limited basis. You could offer your culinary talents in the LETSystem and occasionally cater events or cook a meal for someone who is too busy to cook for themselves.
Some questions that can help you figure out what to offer are:
• What are your hobbies?
• What do you do professionally?
• What do you aspire to?
• What are you studying?
• What are your passions?
• What skills did you learn from your family?
• What skills would you like to share?
The Use of Cash in the LETSystem
The LETSystem does not exclude the use of conventional money. It is meant to supplement the ordinary economy. The terms of a transaction between two members are entirely up to them. They can use 100%LETS units, 100% cash, or any combination of the two. We suggest, however, that the cost of things from inside the LETSystem, such as services and handmade goods, be in LETS credits, while the cost of things from outside the system (hard goods) should be in cash. For example, if you have your apartment painted by another LETS member, the cost of the labor would be paid for in LETS units and any hard goods used for the job, such as paint and materials, would be paid for in cash.
How do I join?
Go to: https://us00.digitekst.com/ecovillage/do/
1. Click on demo sign-up and fill out the form
2. Mail a check for $10 (first 30 members are free), made out to CRSP, with LAEV LETS written in the memo section to:
CRSP
117 Bimini Place, #211
Los Angeles, CA 90004
Check with Lois to find out if you're within the first 30 members (crsp@igc.org or 213/738-1254).
3. Once your check is received your account will be activated and you will be emailed a temporary password. You will also be added to the LAEV-LETS google groups listserve which contains more specific information and a way of connecting with other members without going through the Cyclos system