Freicoin is a digital peer-to-peer currency based on the accounting concept of a proof-of-work block chain used by Satoshi Nakamoto in the creation of Bitcoin.

Freicoin introduces the concept of a small holding fee, called demurrage, to virtual currencies. Currency owners automatically pay this fee. This promotes currency circulation and encourages sustainable investments. This fee, 5% per year, re-enters the economy through miners who use a large portion of it to pay for operating costs.

This demurrage fee was proposed by Silvio Gesell and has been tested several times with positive results including Wörgl during the Great Depression.