Someone on a forum wrote:
The Liberty Dollar business model is to have enough seignorage to stay ahead of inflation (thus a profit motive to spend it) but less seignorage than US coins and FRNs have (thus a profit motive to accept it). As long as it stays in these bounds it's the best way to convert to a precious-commodity-based economy.
For those unfamiliar with the term, dictionary.com defines it as:
seign·ior·age
–nounAlso, seign·or·age.
- something claimed by a sovereign or superior as a prerogative.
- a charge on bullion brought to the mint to be coined.
- the difference between the cost of the bullion plus minting expenses and the value as money of the pieces coined, constituting a source of government revenue.
This is something we need to consider, since money is a product just like any other product, and the producers need to make a profit or they won't produce any.