LETS is an ethically based trading systems in that they are community based and controlled and no person can profit from the LETS itself, though anyone can benefit from any trading they do in the system. Local currency is also ethically driven in that its worth is derived from a member’s commitment to return the value of goods and services received to other members of the LETS. If a person attempts to “rip off” a LETS group, other account holders can simply refuse to trade with them. To ensure this, each member is allowed to know the balance and turnover of any other member, but no other trading information. LETSystems are cost-of-service, not-for-profit systems run and operated by the members. No person or organisation outside the system can profit or benefit from the system, either in dollars or local currency.
Sydney Local Energy Exchange Trading System (LETS)
Changing the World One Trade at a Time