Blockchain Laguna Labs has just launched the first cost-of-living cryptocurrency called Nuon Flatcoin. Unlike other fiat- or commodity-pegged stablecoins, this test token is intended to be an alternative to daily inflation, the company said.
It is a new type of stablecoin inspired by the discussions and proposals of Brian Armstrong, CEO of Coinbase, Balaji S. Srinivasan, ex-CTO of Coinbase, and Vitalik Buterin, co-founder of Ethereum. All three have talked about the need to create a cryptocurrency that allows users to maintain purchasing power.
“The value of a Nuon flatcoin is based on daily unbiased, authentic, and on-chain inflation data,” the firm said in a press release. It means that the value of the token remains "flat" or constant over time from the moment of its purchase until its sale.
There are other stablecoins whose designs are part of a concept similar to the Frax Price Index (FPI) launched in April by Frax Finance, which tracks the consumer price index (CPI). Initially, the crypto using Oracle data from ChainLink was launched with a value of $1.02 and later reached a maximum price of $1.18, but it has finally remained at $1.05.
There is also the Volt Protocol (VOLT) token that tracks CPI, but its price is not tracked by major data platforms like CoinMarketCap or CoinGecko, nor is it listed by larger exchanges like Binance or Coinbase.
Another crypto linked to inflation is Hedging Coin (IHC), launched a year ago. Its value increases following various burning protocols based on annual inflation data and the monthly rate of the US CPI.
On the launch of the Noun testnet, Laguna Labs CEO Stefan Rust commented that until now stablecoins have been based on centralized and depreciated assets, which represents a “concentration and counterparty risk” and does not accurately reflect people’s lives.
He added that Nuon is “the world's first flatcoin [that] provides a viable alternative to this system and is the first cryptocurrency to solve a massive real-world problem today: inflation."
Sourced from dailycoin.com.
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by Santiago Contreras on 2022-10-25 16:00:15.
