Fairo rates are recommended for use when making transactions in the web-of-trust of the translocal fair economy.
Local groups are autonomous to set recommended Fairo exchange rates adjusted to their local circumstances.
For the translocal Fairo rates recommended on this website, we discuss adjustments in the Fairo Telegram group. You are welcome to participate.
The Fairo is a unit of measure for purchasing power. The value that 1 Fairo represents is equivalent to one thousandth of the mean future basic cost of living for one month, which was the purchasing power of 20 Faircoin at the end of the year 2016.
Nobody. Since Fairo is a unit of measure, that would be like creating grams or meters. Fairo is a quantity of a medium of exchange or store of value, not the medium of exchange or store of value itself.
Faircoin is the proof-of-cooperation crypto-currency that serves as medium of exchange and store of value in the fair economy.
The fair economy is a global grassroots movement that embraces intergral revolution, peer-to-peer culture and hacker ethics to make the transition to a new world, reducing as much as possible economic and social inequalities among human beings, and at the same time contributing to a new global wealth, accessible to all mankind as commons.
Most commonly, Fairo is used to measure the quantity of Faircoin to be transfered in a trade transaction. It can also be used as reference when making transactions with another medium of exchange such as a mutual credit system or other local and social currencies.
The Fairo rates are conversion rates for different mediums of exchange, adjusted for the inflation and deflation since year-end 2016. Fairo rates are currently set based on Faircoin.
The conversion rates for Faircoin represents an adjusted mean based on market activity with a delay of about 10 minutes. Other Fairo rates are periodically reviewed and adjusted to deflation and inflation based on consensus in the open assemblies of Fairo stakeholders and the local groups using these other currencies.
The following formula was agreed in the fair ecosystem movement's general assembly.
The Fairo/Faircoin rate is a moving average calculated as:
max(1.2 * WeightedAverage,LogarithmicBottom) WeightedAverage is max(last7DailyMean,last90DailyMean), DailyMean is average(DailyOpen,DailyClose,DailyHigh,DailyLow) LogarithmicBottom is last7DailyMean × sqrt( (max(HistoricHighOfWeightedAverage) ÷ HalflifeOf180Days) ÷ last7DailyMean)
They account for the value of the level of trust in the economic reality for different tiers of the local, translocal and global fair economy. At each tier, they help to keep value from being extracted from the fair economy by capitalist market speculation.
When making a transaction in Fairo, you back them with the medium of exchange, such as Faircoin or some other form of ledger. Such mediums of exchange, like a paper note, can then be backed by assets.
Fairero is what we call the equivalent of a Satoshi in Faircoin, the smallest fraction of a Faircoin. Some people call them "Fairies", too.