As one of the first few projects, Encointer has proposed a parachain on Rococo Testnet. The [ParaID is 1862](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frococo-rpc.polkadot.io#/parachains/proposals), the year of birth of Silvio Gesell, whose theories on Freigeld were a great inspitation for Encointer's [economic design](https://book.encointer.org/economics.html).

Besides serving as a platform for local community currencies with basic income, Encointer will act as a [sybil defense](https://book.encointer.org/ssi.html) mechanism for other parachains in the Polkadot/Kusama ecosystem through XCMP and for off-chain applications via APIs (To be demonstrated upon delivery of our [Polkadot Treasury Grant](https://polkadot.polkassembly.io/post/52)). 

As a non-profit organization, Encointer proposes a "common good" parachain for Polkadot and Kusama with democratic governance (yes, we mean one-person-one-vote!) and DOT/KSM as its native token.

We're looking forward to test our tech on Rococo!

As one of the first few projects, Encointer has proposed a parachain on Rococo Testnet. The ParaID is 1862, the year of birth of Silvio Gesell, whose theories on Freigeld were a great inspitation for Encointer's economic design.

Besides serving as a platform for local community currencies with...

Rococo Parachain Proposal for Sybil Defense

Encointer aims to become a common-good parachain on both Polkadot and Kusama. This manifesto shall make a case for granting Encointer the privilege of a system-parachain slot.
# Why is Encointer a Common Good?

As a not-for-profit endeavor, Encointer does not fit the Polkadot parachain crowdloan model. Parachain crowdloans rely on DOT holders to lend their DOT. They do so for a financial incentive exceeding their opportunity costs for disclaiming their right to stake DOT on the relay chain. Encointer cannot offer such an incentive as there is no revenue model and if there were one it would inevitably conflict with Encointer's goal to reduce inequality globally. 

We believe an Encointer parachain is of common interest to the Polkadot ecosystem because it offers a sybil defense mechanism and a basis for democracy.

# Value Proposition: Sybil Defense

Encointer is a _unique identity system_ and solves one of Vitalik Buterin's [hard problems in cryptocurrency](https://github.com/ethereum/wiki/wiki/Problems/89fd07ffff8b042134e4ca67a0ce143d574016bd#metrics). The Encointer protocol ([whitepaper](https://github.com/encointer/whitepaper/raw/master/encointer_whitepaper.pdf)) enables every human to maintain a unique proof of personhood (uPoP) through pseudonym key-signing parties.

Among its contenders ([Idena](https://idena.io/), [BridghtId](https://www.brightid.org/), [Trustlines](https://trustlines.network/), [CirlesUBI](https://joincircles.net/)), Encointer claims to have the most secure sybil defense mechanism. It requires physical participation at concurrent key signing meetups with randomized participants in randomized locations within a limited region in regular intervals. If the majority of a community is honest, there can be no sybils. Other projects use social graph approaches or randomized bilateral video chats which may be less involved and more inclusive - but also less secure.

Encointer also goes to great lengths to [protect your privacy](https://book.encointer.org/ssi.html#privacy-considerations) - which is even more important if you can only maintain _one_ _single_ _unique_ identity.

## Democracy

Polkadot is governed by free-market capitalism. Who has more coin has more say, or: who has _more to loose_ has more say. For many financial applications this might be a sound governance design. But there are other applications where we require democratic governance, where every human should have one vote. Such applications are:
- Self-sovereign identiy
- Reputation systems
- Decision making on off-chain matters, not represented by on-chain token holdings
- Global commons governance (human rights, fighting climate change, nuclear disarmament, AI and bioengineering regulations. (See [GloCo](https://www.gloco.ch/))

Encointer enables online democracy - on a local to global scale.

## Airdrops

Encointer itself leverages its uPoP sybil defense for issuing a universal basic income to every human. Other platforms may want to use uPoP for their token airdrops or faucets.

# Native Token and Fees

As a _common good parachain_, Encointer does not seek to have its own native token.

Encointer will use DOT/KSM as its native token. Transaction fees will be charged in DOT/KSM and will be collected in Encointer's treasury to be spent on infrastructure maintenance and protocol improvements.
Encointer will take measures to adjust fees to mitigate the volatility of DOTs and ensure inclusion of the global south.

# Governance

The Encointer parachain will feature a similar [governance design like Polkadot](https://polkadot.network/polkadot-governance/). However, decision making will be based on democratic voting instead of coin voting. Every person participating in Encointer ceremonies regularly will have one vote to elect council members or vote on referenda.

During an initial phase, the [Swiss Encointer Association](https://encointer.org/about/) will define the set of trusted communities whose members will be allowed to vote with equal power. Over time, an unpermissioned web-of-trust will evolve based on inter-community attestations and trade.

# Interoperability

Any third party application can register an application token on our parachain. Encointer ensures that every human can only claim a single account for that application for a certain time period.

Parachains can use Polkadot's XCMP to benefit from Encointer sybil defense. Off-Chain applications can use the Encointer Collator API.

## Polkadot and Kusama

Encointer aims to be deployed on both Polkadot and Kusama. It will synchronize the ceremony schedule on both parachains to ensure that meetups happen on both platform concurrently, ensuring compatibility of their sybil defense systems. It will also aim at bridging uPoP between the two.

Encointer aims to become a common-good parachain on both Polkadot and Kusama. This manifesto shall make a case for granting Encointer the privilege of a system-parachain slot.

Why is Encointer a Common Good?

As a not-for-profit endeavor, Encointer does not fit the Polkadot parachain crowdloan...

Encointer Common Good Parachain Manifesto

Encointer

Encointer aims to provide every human with a digital proof of personhood and a basic income in a local cryptocurrency. This means that every participant can maintain exactly one digital identity and that every participant gets a fixed amount of cryptocurrency per month. In contrast to other known...

If you have been following the Encointer Project, you may have noticed that communications fell silent for a while. Unfortunately, as Encointer requires physical meetups with random people, the COVID-19 pandemic caused delays. However, we kept making progress nevertheless and now that restrictions have eased somewhat, we would like to share some big news with you about the project. 

Encointer has been [provisionally accepted](https://kusama.polkassembly.io/motion/357) to form a common good parachain on Kusama and are now [inviting people](https://encointer.org/contact/) to form the first Encointer community currency in Zurich. In this post we will discuss the benefits of Kusama for Encointer, how the project will enrich the Kusama ecosystem, and how Zurich residents can get involved in the world’s first Encointer community currency. 
# Recap: The Goal of Encointer 

Firstly, let’s begin with a very brief recap of Encointer’s objectives. Encointer’s aim is to create a system of community currencies that can spur local economic activity. The project is particularly focused on less developed economic regions where fiat money tends to be scarce, large proportions of the local population are unbanked, and exchange rates are volatile. In such circumstances, local economic activity is suppressed by a lack of fiat money and monetary infrastructure. Citizens may have marketable skills, products, crops and crafts, but they are largely unable to exchange them because there is very little money circulating in the local economy.

Encointer is a framework for decentralized currencies designed to overcome this problem. Individuals in a given region can voluntarily come together to form a community currency. In order to ensure sufficient money supply, this currency would be issued as a universal basic income to all participants. Such currencies could spur local economic activity by providing a more convenient alternative to barter, without needing to rely on banks, governments, or charitable donations. 
# A Major Milestone: Kusama Parachain  

Encointer recently achieved a major milestone: it has been tentatively accepted to become a common good parachain on the Kusama network. For Encointer, a big advantage of using a Kusama parachain is its pooled security.

Blockchain security is based on game theory: the more you have to lose, the greater your interest to keep the blockchain secure. This also means: the more capital a blockchain binds, the more secure it becomes. If Encointer were to launch its own blockchain, it could not bind significant capital because it doesn’t promise any returns. Thus, it would be easy to manipulate or sabotage. Kusama offers Encointer a solution to this problem. As the sister network of Polkadot, it already binds over $2bn, making it resilient to attacks. In addition, Kusama is a so-called relay chain, which means that it supports many highly customizable [parachains](https://wiki.polkadot.network/docs/learn-parachains) which all benefit from the pooled security of the network. 

But parachains are a scarce resource. Usually, a project would need to bond in the region of $100m to secure a slot. However, Kusama’s on-chain [governance council](https://wiki.polkadot.network/docs/learn-governance#council) recently [signaled its support](https://kusama.polkassembly.io/post/914) for Encointer to be granted a common good parachain slot without the need to bond capital.  

While this is a hugely encouraging development, the decision is not yet final. Although the council [believes that Encointer adds value to the Kusama and Polkadot ecosystems](https://kusama.polkassembly.io/post/610), the entire community of KSM holders will ultimately need to ratify that decision in a [referendum](https://wiki.polkadot.network/docs/learn-governance#proposing-a-referendum) (through a process called [conviction-voting](https://wiki.polkadot.network/docs/learn-governance#voluntary-locking)).
# How Will Encointer Benefit the Kusama Ecosystem?

Now that we understand the benefits of Kusama for Encointer, let’s think about what Encointer offers the Kusama ecosystem.
## A Secure, Private, Unique Identity System

Encointer solves one of Vitalik Buterin’s hard problems in cryptocurrency — how to create a “unique identity system” that can prevent [Sybil attacks](https://en.wikipedia.org/wiki/Sybil_attack).

The protocol ([whitepaper](https://github.com/encointer/whitepaper/raw/master/encointer_whitepaper.pdf)) requires every participant to be willing to prove their unique identity at physical key-signing events. Such events are held at regular intervals and involve randomized participants at randomized locations within a limited geographic region. This adds a strong layer of security to Encointer, ensuring that when the majority of a community is honest, a Sybil attack is impossible.

Whereas the social graph or randomized bilateral video approaches employed by alternative projects like [Idena](https://idena.io/), [BridghtId](https://www.brightid.org/), [Trustlines](https://trustlines.network/), [CirlesUBI](https://joincircles.net/), and [ProofOfHumanity](https://www.proofofhumanity.id/) may be less involved and more inclusive, they are also less secure than Encointer. Other projects that use biometric indicators to prove uniqueness ([WorldCoin](https://worldcoin.org/)) are problematic for numerous reasons, as evidenced by [Aadhaar](https://www.epw.in/engage/article/aadhaar-failures-food-services-welfare) in India.

In addition to its security, Encointer goes to great lengths to [protect your privacy](https://book.encointer.org/ssi.html#privacy-considerations) — which is even more important if you can only maintain a single unique identity.
## One Person, One Vote

Kusama is governed by its token holder community.  While Kusama’s governance system includes features to make sure those with less stake in the network still have a voice, in general, decisions are weighted by stake and the majority of stake can always control the network. That is, those who have more capital to bind for longer periods have more power. For many financial applications, this might be a good approach. But some applications require a more democratic form of governance, where every human has an equal say. Such applications include:

* Self-sovereign identity
* Reputation systems
* Decision-making on off-chain matters

Encointer enables a form of online democracy — on a local to global scale — that could complement Kusama’s existing governance system if the community chose to adopt it.
## Inclusive Onboarding and Transaction Fees

Public blockchains usually charge fees, which prevent spamming, prioritize transactions in the case of congestion, and incentivize validators. But current blockchain fee models come with significant drawbacks:

*  Onboarding new users is either centralized (faucet) or inconvenient (buying tokens on exchanges).
*  Fees are likely to be unaffordable for many people due to inequality of purchasing power.

Encointer offers local currencies for local needs — as the currencies are distributed in a specific region as a basic income, fees denominated in these currencies will be automatically proportionate to purchasing power. Other parachains can offer decentralized faucets for their native tokens based on Encointer’s [sybil-defense mechanism](https://www.youtube.com/watch?v=Fw2dalJO1hM).
# First Encointer Community to launch in Zurich

Kusama governance signaled its support for granting Encointer a common good slot on Kusama before Slot 20. Thus, we expect to launch our parachain within the next few weeks. Soon after launch, the first community will be bootstrapped in Zurich. 

Ultimately, Encointer’s focus will be on communities in less developed regions of the world. But to get started, we decided to launch the first community in Zurich. We selected Zurich because there is a vibrant blockchain community in the city, and the Encointer Association is based there, so it serves as a good early test bed for the concept. In addition, COVID restrictions have eased to the point where people can meet outside. 

Launching an Encointer community will be a slow process. The security of the protocol is based on a web of trust which can only grow organically. People have to meet physically every 41 days and the first event will involve only 12 people, the “bootstrappers”. At each subsequent event, newcomers must be a minority, so we expect it to take several months to reach hundreds of members, two years to reach thousands, and more than three years to — theoretically — include the entire population of Zurich.

The good news is that you can still participate before attending your first key-signing event. Simply get local currency from a friend or accept payment for products or services in that currency. By accepting the new currency, you are actively backing its value. The Encointer mobile app even allows you to promote your business on its marketplace, the “bazaar”.

The Zurich community will be closely monitored by the Encointer Association. Once the platform is running stably, we will rapidly onboard new communities around the world. 
# Calling All Zurich Residents — Join the Encointer Community

Do you live in or near Zurich and want to be a part of the Encointer community? Please subscribe here: https://encointer.org/contact/

Do you live elsewhere and would you like to initiate a local community currency? Please subscribe here: https://encointer.org/contact/


If you have been following the Encointer Project, you may have noticed that communications fell silent for a while. Unfortunately, as Encointer requires physical meetups with random people, the COVID-19 pandemic caused delays. However, we kept making progress nevertheless and now that...

Encointer About to Launch on Kusama and Bootstrap First Community

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Encointer

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