Inflation-linked 'flatcoin' launches testnet to track cost of living
The concept of an inflation-linked "stablecoin" has been tested before, but whether it works like this has yet to be proven expected.< /p>
New
Blockchain tech firm Laguna Labs has launched a testnet for its developing “flatcoin” — a stablecoin spin-off — pegged to the cost of living rather than fiat currency or a commodity.
>In an October 24 announcement, Laguna Labs said the Nuon flatcoin is different from tokens linked to fiat currencies, such as the US dollar, because it is pegged to the cost of living via "daily unbiased, authentic and on-chain inflation data.”
The company said the idea was inspired by discussions and Twitter feeds from big players in the space, such as Coinbase CEO Brian Armstrong, former Coinbase CTO Balaji S. Srinivasan, and co -Ethereum founder Vitalik Buterin, all of whom call for alternative ways to anchor an asset so that it maintains its purchasing power over time.
However, while the concept of an inflation-linked crypto token is not new, it remains relatively untested.
In April, Frax Finance launched a consumer price index (CPI) tracking stablecoin called Frax Price Index (FPI) which uses oracle data from ChainLink.
Launched at around $1.02, the price hit an all-time high of $1.18 on July 19, but has since fallen 10.6% to $1.05. Given that the asset is less than a year old, it is difficult to judge its...
The concept of an inflation-linked "stablecoin" has been tested before, but whether it works like this has yet to be proven expected.< /p>
New
Blockchain tech firm Laguna Labs has launched a testnet for its developing “flatcoin” — a stablecoin spin-off — pegged to the cost of living rather than fiat currency or a commodity.
>In an October 24 announcement, Laguna Labs said the Nuon flatcoin is different from tokens linked to fiat currencies, such as the US dollar, because it is pegged to the cost of living via "daily unbiased, authentic and on-chain inflation data.”
The company said the idea was inspired by discussions and Twitter feeds from big players in the space, such as Coinbase CEO Brian Armstrong, former Coinbase CTO Balaji S. Srinivasan, and co -Ethereum founder Vitalik Buterin, all of whom call for alternative ways to anchor an asset so that it maintains its purchasing power over time.
However, while the concept of an inflation-linked crypto token is not new, it remains relatively untested.
In April, Frax Finance launched a consumer price index (CPI) tracking stablecoin called Frax Price Index (FPI) which uses oracle data from ChainLink.
Launched at around $1.02, the price hit an all-time high of $1.18 on July 19, but has since fallen 10.6% to $1.05. Given that the asset is less than a year old, it is difficult to judge its...
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