North Warrandyte RakeLETS

We are up and running with our Local Exchange/Energy Trading scheme (LETs)!

But what is a LET scheme?  For more information have a look at the Wikipedia definition

The following explanation of how LETs works comes from Wikipedia….

1. Local people set up an organisation to trade between themselves, keeping their own record of accounts.
2. A directory of members’ offers and requests—goods, services or items for hire, priced in local LETS units—is compiled and circulated.
3. Members use the directory to contact one another whenever they wish. They pay for any service or goods by writing a LETS cheque or credit note for an agreed amount of LETS units, or by exchanging printed LETS notes.
4. If applicable, the credit note is sent to the LETS bookkeeper who adjusts both members’ accounts accordingly.

Since its commencement over 20 years ago, LETSystems have been highly innovative in adapting to the needs of their local communities in all kinds of ways. For example in Australia, people have built houses using LETS in place of a bank mortgage, freeing the owner from onerous interest payments.

LETS is a fully fledged “monetary system”, unlike direct barter, with LETS members able to earn credits from any member and spend them with anyone else on the scheme.

“But this seems like a lot of paperwork to keep the accounts and issue statements?”

Yes it used to be, and was often the cause of a scheme failing.  However, through the wonder of the Internet we now have access to a FREE accounting package which allows us to manage our personal account, advertise services offered and request services from others.  This is the Community Exchange System (CES) which we are now a part of.   Have a look at their home page and you will see that Australia is leading the world by far with 45 schemes set up on the system and over 30% of the world number.

The CES site has loads more information about how it works, the philosophy and even a demo site that you can play about in.  It also offers a list of suggested services you might want to offer.

Unit of Currency

To acknowledge the origin of the scheme, and set us apart from other schemes, we have chosen the North Warrandyte Rake as our unit.

Rather than having a direct relationship between Australian Dollars($) and the North Warrandyte Rake (R), we have gone for a base currency based upon labour

i.e. 1 Rake = 15 mins labour

or 4 Rakes = 1 hours labour

However, this is only a guide and you are welcome to negotiate your own rates.  For example if you are providing and operating some power tool you may negotiate a rate of , say, 8 Rakes an hour (4 for your time and 4 for your machinery).

Agree the rate before you start the job!

“But what happens if I get into debt, owing Rakes?”

Not a problem, infact the system relys upon some in debt and some in credit – so don’t be afraid to spend!

Also, there is currently a limit on how much you can be in debt or in credit (Currently 100 Rakes in debt and 200 Rakes in credit although we may change those limits as we develop)

Furthermore, there are No Charges and No Interest on debits and credits and no time limit on re-paying your debits.  Your account will get wiped when you leave the area.  Again the system assumes that there will be some losses which are pretty much balanced with gains.

“But nobody is offering the service I am looking for!”

Well there are two things you can do:

• Advertise your need – someone may be able to offer the service or goods but no realised there was a market for them
• Look at other LETs schemes and see if your need can be met there – We have Warranwood scheme which covers our area and we can trade Rakes with their Tokens through the CES system.  There is also Diamond Valley running a scheme but they are not currently on CES so I’ll have to talk to them and see if we can inter-scheme trade with them

So you are interested and want to start?

1. Registration -Select Scheme Page Select Country… “Australia” Select Exchange… “North Warrandyte”
2. List your Services
3. Start Spending and Earning Rakes!

Log in