We grant each other a credit limit based on the trust that everyone will work it back. Advantages: interest free money on demand. What are the purposes of community exchanges?
To create trust and prosperity by trading with the community at a low cost (no interest, low inflation). Selling means giving the buyer a credit which means money creation. Have the confidence in yourself to give back to the community and stay in the trading flow. Life is giving and taking which is trade. In the case of system failure everyone continuous trading with the last balance which can be done even on paper between community members. All that the Love Lakshmi system does is recording balances and transactions. LL is based on www.cyclos.org software, an older version is open-source.