Here we look at the essential layers of governance that any mutual credit system requires as it scales:
- **Credit limits:** Based on trust, reputation, or collateral; protect against runaway negatives.
- **Fees & incentives:** Modest fees on large negatives, inactivity fees, or demurrage on large positives to keep value moving.
- **Pricing & unit of account:** Many networks price in a familiar reference (e.g., pegged 1:1 to a local currency) to reduce confusion.
- **Transparency:** Open ledgers or periodic statements build trust.
- **Dispute & default handling:** Rules for delinquent negatives (work it off, repayment plans, insurance pools).