The Economics of Stablecoins
Stablecoins are a new idea that is being advanced by some people in the cryptocurrency community. A stablecoin is a digital currency with a flexible supply. The idea behind such a coin is simple: we create a cryptocurrency that uses some kind of metric to track demand for the coin, which will trigger an automatic increase or decrease in the coin’s supply. This is supposed to keep the purchasing power of the currency stable — hence the term “stablecoin.” The motivation behind the idea of a stablecoin is the belief that low purchasing power volatility will be the main driver behind....
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OVR has decided to upgrade its token economics to make its own tokens more rare and valuable.
Last May, the OVR team burned about 1 million OVR tokens to celebrate the first six months of the project. Now it is announcing an exciting decision to make token burn an integral part of its token economics.
OVR’s token economics plan
On November 1, a full-fledged token burn program was officially kicked off.
The project team has decided to take 50% of the revenue generated from the ongoing sale of OVRLand on a monthly basis and manage it in the following....
This is a guest post by Andrew Criscione who co-organizes the Mises Group in Boston, Ma. He hosted Jeffrey Tucker for a dinner with the Mises Group members and shared the experience. The Boston Austrian Economics Group held the event "Bitcoin and Bowties" featuring Jeffrey Tucker, CEO of Liberty.me and publisher of Laissez Faire Books. Tucker is an influential Austrian economist, author, and former editor for the foremost repository of Austrian thought, Mises.org. Austrian economics is a school that holds much weight in the libertarian and crypto-anarchist circles so intertwined with....
Are algorithmic stablecoins trying to clone the intrinsic qualities of fiat money or dollar; like security? The recent craze over algorithmic stablecoins has stirred mixed reactions from the crypto community. For crying out loud, it has been an emotional contagion for crypto enthusiasts everywhere. So, is it overkill? Are algorithmic stablecoins too ambitious? Suggested Reading […]
The Central Bank of Russia has spoken out against stablecoins, which it says are highly risky and not fit for payments. The monetary authority reacted to a statement by a top finance ministry official who suggested that his department would support the development of Russian stablecoins. Russia’s Central Bank Voices Opposition to Stablecoins Unlike the Ministry of Finance, the Central Bank of Russia (CBR) believes stablecoins are not intended for settlements, either within the country or abroad. The monetary authority said that the issuance and use of private stablecoins is....
A Cornell University economics professor says that the promise of decentralized finance (defi) using blockchain technology is real but bitcoin may not last that much longer. Nonetheless, he admitted bitcoin “has really set off a revolution that ultimately might benefit all of us either directly or indirectly.”
Economics Professor Doubts Future of Bitcoin, Praises Defi
Eswar Prasad, professor of economics at Cornell University, talked about bitcoin, cryptocurrencies, blockchain technology, decentralized finance (defi), and central bank digital currencies in a recent....