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Demonetization is the reverse process of monetization. It is the removal of money operated barriers to access.


Demonetization opposes the dynamic of centralised money in the sense that it requires time and effort but gives no material reward. The fact that ever more effort is being channelled into it is indicative of considerable innate desire for the abundance that it brings about, and a resentment of the scarcity and control resulting from monetization. The most prominent examples of conscious efforts to demonetize society are in the areas of free software.

Soft (Transitional) De-monetisation[edit]

Soft-demonetization is the opening of access to beneficiaries such that their access is not restricted due to lack of money. For example, may be achieved, for example, by requesting donations instead of charging money for a product.

Hard (Complete) De-monetisation[edit]

A system which is completely demonetised may receive financial input but does not rely on it. Hard de-monetisation requires not charging for access to the outputs, but goes further than soft-demonetisation since it is requires independence of the financial system and so it is therefore proofed against the shock of money collapse.

Information Technology[edit]

In the 1980's and 90's, computers were taking off for home use, and the internet was connecting them, creating potentially large markets for software, but also allowing customers to connect to one another and exchange software, creating the phenomenon referred to as 'piracy'. By connecting the small proportion of users who are technically capable of cracking copy protection with the much larger number who could use cracked software, the revenue model of commercial software was heavily impacted. Moreover, the emergence of open source software and open standards allowed the small proportion who could create their own software to work together and challenge the paid professionals. Whilst some people continue to pay for access to software or information, the compulsion to do so is decreasing as demonetization is progressing, and free software is increasing in amount and efficacy relative to commerical software.

Mandated Demonetization[edit]

Rationing is a kind of temporary and limited demonetisation which historically is carried out in times of great need. Limited since it has usually been restricted to a few critical goods, such as food or fuel, temporary since it has generally been applied only for a limited period, such as during wartime or as a response to sanctions or other emergency. It replaces monetary barriers to access by an alternative set of restrictions designed to be more egalitarian. This is a transfer of power from the holders of money to the administration of the rationing system, and often results in the spontaneous emergence of a black market for the rationed goods.


By removing financial barriers to access, demonetization increases abundance, whilst beyond a certain point, abundance effectively mandates demonetization, since it is hard to induce customers to pay for access to something which is generally understood to be readily available for free.