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Dual Cryptocurrency System
Creating a medium of exchange pegged to USD or any other fiat currency Solve the problem of rigid money supply of the crypto monies
- The system should have an acceptable level of volatility
- have no deflationary bias
- easy to understand and easy to use
Creating a blockchain money (token) on the basis of Ethereum or its fork The token - call it UCD (US Crypto Dollar) itself an independent ledger, a CC mined to certain aspect independently from ETH.
Differently from any previous CC
- it is created and destroyed all the time
- anybody can create a UCD having met with the conditions of the ORIGINATE smart contract running on ETH
- anybody can destroy a UCD having met with the conditions of the REPEAL smart contract running on ETH
Creating an escrow of (ETH) with ORIGINATE smart contract.
- After the deposition of the ETHs the contract will issue UCDs and incorporates these UCD into the UCD ledger as a new block in the chain (as a kind of mining reward)
- The owner of the “new” UCDs will be the designated account defined by the ETH owner in the escrow process (origination)
- The amount of the new UCDs will be equal of the deposited ETH actual USD exchange rate i.e. if you deposited 2 ETHs would get 600 UCDs or whatever is the actual rate ( call it Origination Rate)
After origination the user can do anything with its UCDs as with any other CC, meanwhile his /her ETHs is locked in the ETH ledger, can’t do anything with them.
The ETH owner (the depositor/originator) may get back his/her ETHs through the REPEAL contract by sending the appropriate amount osf UCD to the contract. The amount should be equal with the origination exchange rate /ETH – PREMIUM
It is a small % of the originated UCD, depending on the time elapsed from the origination to the repealing. See Details.
Bitpay, ...
- Tether - the most stable but not decentralised.
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MakerDAO - Ethereum's quasi official stable ccy in the making
- MakerDao whitepaper
- SimpleCoin - MakerDAO's "test" token
- MakerDAO presentation on DEVCON1
- Random MakerDAO presentation
- BitUSD - BitshareX now low activity market consensus based attempt
- NuBit - similar to Tether but had a crash
- Pgx.io - colleteral based
- variabL - decentralised exchange
- Kamakara - low key attempt
The total premium amount increasing all the time. because a premium is never repealed.
- to incorporate negative premium, i.e. the originator needs to have more UCD to free his deposit.
- introduce a transaction fee top of the miners' fee to ta smart contract, it can be used as a regulative tool
ETH/UCD – partially fixed /pegged but market rate also may exist ETH/USD – floating market rate USD/UCD –floating market rate
ETH holders UCD holders USD holders and all the combinations
They need a CC to use in the digital economy, they want to use their property i.e. getting some income ( the Premium). For them, the ETH is a store of value, or a kind of investment in the digital economy, like the real estate in the real world…. You don’t want to lose it for a mundane commodity.
Supply side increase/decrease may be not in synchrony with the demand of UCD
Upside. As anybody with ETH can create UCDs there is a massive supply of UCDs. The Premium rate may influence the interests of the ETH holders, The higher the rate the more willing to originate UCDs. Downside. UCD market value falls under 1 USD. Originators may be interested in buying UCD on the market and repealing it. They get the extra premium on the top of the System premium. ETH holders might not too interested to originate UCD.
How might UCD survive that?
Should be defined by bots, see Oracles
The premium is to use as a regulation tool.