[Ygg2]

I don't think it goes anywhere. In theory Freigeld should simply decay into nothing (i.e. tax is collected by government who would depending on financial situation either print more or destroy existing). However I'm unsure where would in Freicoin decay go.

Also what makes me really suspect of it is the fact that Freicoin foundation centralizes the whole thing, so it's a bit pointless. I mean, why have an centralized P2P network? Another worrying thing is that under Silvio Gessel's original idea Freigeld is a local currency NOT a global one.

[mistercow]

It's not centralized (according to their site). The value of held money just decays. The money doesn't go anywhere; it just disappears.

[Ygg2]

    >  Q: You said that Freicoin is decentralized. But the   Foundation makes it centralized!
    > A: You are right. But we have no other solution. Initial coins should be distributed to the society.

From FAQ, they say its centralized.

[maaku]

No. There is a one-time issuance of currency to get the money out there. Of that, 20% goes to the miners over the next 3 years, and 80% is distributed through community-vetted grant and prize proposals.

Of the demurrage however, it is perpetually destroyed and recycled through the miners.

[JonnyB]

Yap, you should fork it and make your own :)

[Ygg2]

I would if it would serve any practical purpose. Freigeld needs to be adjusted (by printing/removing money) to maintain 0% inflation. To me that implies some form of centralization.