How the Fredericton Barter Network Works

When a new member joins the Barter Network, they are given an account, which has a balance of zero. They are free to go into a negative balance on their account. This ability gives them the freedom to trade with other members right away, regardless of whether they have earned credit yet. This means that trade is never limited by the availability of currency: members of the barter network have the ability to create money as they need it.

Every member of the network must offer goods and services for trade with other members. These goods and services are advertised on the Barter Network web page. This web page can also be used to advertise needs and wants within the community, and thus encourage the development of new goods and services.

Here is an example of a typical transaction within a barter network:
Louise is a new member to the network, with an account balance of zero. On the website, she comes across a listing for lessons in bread making, offered by John. As she has always wanted to learn how to make bread, she calls or emails John, and together they come to an agreement on the price of fifteen barter dollars for an afternoon of bread making lessons, plus three dollars in Canadian money to cover the cost of materials. Louise then calls or emails the network administrator, and asks him or her to transfer fifteen dollars from her account to John’s. Louise’s account will now have a balance of minus fifteen, while John’s will have increased by fifteen. For Louise, a negative balance represents a debt to the community as a whole, to be repaid when she provides a good or service to someone else.

The sum of all accounts in well-administered barter network should always add up to zero. For every negative balance, there should be a positive one to counter it. Having a negative balance should therefore not be seen as a bad thing, but rather as vital to the smooth function of the network.