With Φ OIC we do not let the money lose value in the traditional sense but the same objectives are maintained by losing the creation potential at the end of the month. So whatever was not created just falls away.
"Conceptually, demurrage works by freeing material goods which are subject to natural cyclic processes of renewal and decay from their linkage with a money that only grows, exponentially, over time. As established in Part 1 of this text, this dynamic is driving us toward ruin in the exhaustion of all social, cultural, natural, and spiritual wealth. Demurrage currency merely subjects money to the same laws as natural commodities, whose continuing value requires maintenance.
demurrage redefines money as a medium of exchange instead of being a store of value. No longer is money an exception to the universal tendency in nature toward rust, mold, rot and decay—that is, toward the recycling of resources. No longer does money perpetuate a human realm separate from nature."
Read more on Wikipedia - (https://en.wikipedia.org/wiki/Demurrage_(currency))