Decentralized digital money for the masses.
A widely available, dependable and easy-to-use digital currency, that consumers can buy, use, hold and collect interest on, without the involvement of banks.
Notice: This document is a research proposal, and in no way makes promises about the full functionality of any derived implementation, nor does it represent a commitment or intent to build, deploy or operate such a system. Its sole aims is to envision the process of defining, planning and productizing such a system and product.
Notice: The research proposal is provided “as is”, without warranty of any kind, express or implied. In no event shall the authors or copyright holders be liable for any claim, damages or other liability, whether in an action of contract, tort or otherwise, arising from, out of or in connection with the research proposal or its implementation or the deployment on a public blockchain as a working contract, or the use, or other dealings in the research proposal and any of its deployed on-chain contracts.
- Digital money for the masses - Provide everyday people with a usable (requiring minimal cognitive load) and competitive (interest bearing) digital stablecoin based on blockchain technology.
- Wide availability - A currency cannot be easy-to-use if it is not widely accepted by a network of people and businesses, and it is not widely accepted if doesn’t grow past a tipping point, where mainstream financial ecosystem players are incentivized to support it.
- Maximal decentralization - Eliminate risk of rent-seeking through capture, and minimize the need for third-party trust, with goals of improving conditions of adoption by other businesses, and significantly reducing risk of central failure.
- Incentivization - Provide loan takers with sufficient incentives to take loans (open debt positions using collateral), competitively compared to other market solutions. Provide different stakeholders with a competitive but profitable business model that incentivizes and guides them into behavior that benefits the system and other stakeholders.
- Simplicity - Minimize operational complexity, such that it is relatively easy for all stakeholders to anticipate the system’s automated behavior, and predict future outcomes.
- Capital efficiency - Making the flow of capital more efficient through the system unlocks economic value and benefits all stakeholders.
Long term trend assumptions
- Disruption of finance - Financial assets and processes would increasingly be digitized and decentralized, through use of blockchain technology, due to the significant efficiency unlocked in building and operating financial systems.
- Collateral-backed stablecoins - Using smart contracts to offer a stable-value token by collateralizing other digital assets, is the optimal method for creating decentralized blockchain-based stablecoins.