Flatcoin: A project aimed at beating inflation centered around a cost-linked stablecoin. Is this the answer to rising inflation? Or could it be another Terra-like circus?
Blockchain development company Laguna Labs has launched a new crypto called Nuone. They say it is the world’s first overcollateralized and decentralized “flatcoin”.
The idea is that the Nuon is an inflation-resistant coin, designed to protect purchasing power. So in a perfect word, using a FlatCoin, a burger bought today would be worth the same as a burger bought five years from now.
Here is the lecturer.
Laguna Labs says, “Unlike most stablecoins pinned to a depreciating asset like the US dollar, the value of a Nuon flatcoin is based on daily fair, authentic and on-chain inflation data. Purchasing power remains constant or flat, from the moment it is bought until it is sold.”
If you want to have a play, you can test out the Nuone Mint mechanism. The protocol’s first testnet is here. Developers and enthusiasts may be in a hurry and may be part of the development (or demise) of a new project.
Stephen Rust is the CEO of Laguna Labs. “For too long, crypto relied on centralized, depreciable assets for its stablecoins. Not only has this presented concentration and counterparty risk, but it is not an accurate reflection of people’s lives. Nuon is a viable alternative to this system. And today is the first cryptocurrency to solve a huge real-world problem: inflation. Fully decentralized, ultra-collateralized and censorship-resistant, Nun is the first digital asset that aims to help people retain their purchasing power. have to help.”
flatcoin vs stablecoin
Inflation is getting gangbusters all over the world and fiat currency is devaluing rapidly. Laguna Labs says that flatcoin has been a topic of conversation by many blockchain founders.
Balaji S Srinivasan, ex-CTO of Coinbase, explored the FlatCoin concept in a series of Twitter threads. He saw this as a way to avoid the depreciation of the US dollar in a stable digital asset.
Ethereum founder Vitalik Buterin said in a recent podcast that cryptocurrencies should be ready to de-peg redundancies on any one asset. This is to avoid potential concentration, as well as avoid regulatory risks. Buterin said a peg against a fair consumer price index could be an alternative.
Brian Armstrong is the founder of Coinbase. He said, “In the cryptocurrency economy, I think we need a currency that is not pegged to fiat currency. We have USD coins that are backed one to one by the dollar, and then we have decentralized ones like DAI. Stablecoins are there, but it would be nice to have a stablecoin, like a flatcoin, that is tied to purchasing power. Like, every single coin today buys you a McDonald’s hamburger, and hopefully in five years, a coin will still get you McDonald’s will buy hamburgers.
Could this be the new way to beat inflation? Or is it just another algorithmic promise that burns to the ground? we will keep you updated.
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