According to Occupy School of Money, Chapter 9 - Demurrage Tax,  demurrage tax corrects a problem that appears in the definition of money. Money is considered to be that which enables exchange. That which enables transactions. As money passes from person to person it enables goods and services to be transferred. If transactions are inhibited the transfer of goods and services is interrupted. A further line in the common definition is that money can act as a store of value. The problem here is that it cannot do both at the same time. If it is being stored, it is removed from circulation and no longer enables transactions and the transfer of goods and services. New money, then, needs to be created to replenish the supply of money diminished by hoarding. The Hoarded Money then has no value. Demurrage Tax discourages the practice of hoarding money and redefines money as a medium of exchange and nullifies the ‘store of value’ component from the current definition of money.