3.1 Introduction

The purpose of the ReSource Protocol is to address and answer the basic economic questions for DLT- based mutual credit systems, while providing a flexible framework within which different kinds of mutual credit systems, serving a multitude of diverse use cases, can be established.

While mutual credit systems built on top of ReSource may differ significantly in terms of purpose, scope, monetary dynamics, and loan policy, they all share core elements such as 1) endogenously created stable credits, 2) overdraft-enabled current accounts, 3) distributed underwriting and risk management, and 4) distributed debt collection and obligation enforcement.

Participants may engage with the ReSource Protocol in one or more of the following four roles:

The nature of these roles and their contribution to the ReSource Protocol will be elaborated on in the following chapters.

Naturally, as stated above, distributed risk management and debt collection are the most sensitive and novel aspects of the Protocol. The general logic driving these aspects will be introduced in the following chapters. The exact mechanics facilitating these processes, the required token economics, and their implications will be elaborated on thereafter.