Wednesday, March 11, 2020

Podcast Episode 17: Designing a Stable Currency (No Inflation or Deflation)

Purpose of Money (To store the value of our working time)
Attributes of a good currency
Hold Value
Problems with Inflation
Money loses value over time
Problems with Deflation
New users to the system are penalized
Hoarding is encouraged, potentially leading to a deflationary spiral
How to create a true stable coin (Match Supply with Demand)
Tie to the worth of human time
Money represents our working time so the value should follow human working time.
Design of System
Stable Coin - Tempus (Time)
Maintains stable value in relation to human work time
Users mint new coins by proving they are human and spending time
When new coins are minted, a percentage goes to shareholders.
New shares are created (5% annually) and sold for tempus that is burned
Increasing supply
Users mint new coins by proving they are human and spending time
For every new coin minted by users, a percentage is also minted and given to shareholders (or perhaps just used to buy and burn shares?)
Decreasing supply
Steady rate of burn (In theory, if there is a constant rate of burn then we should avoid the “death spiral”)
Inflate shares to buy and burn tempus
Proof of Human Work
Captcha market (I don’t really like this idea but it’s the best I’ve got so far)
captchas that prove you are human
Users are given a random captcha to prove they are human and mint new tempus
captcha developers get paid with bonds that mature at a later date (1 year?) and can be seized if the captcha is shown to be cheating the system
Bounties for discovering cheating users/ captchas
captchas must burn tempus to be listed/they must pay users out of pocket for an amount of time (1 Year)
Maybe try to determine the value by analyzing the fees people pay
Some other way to find how much people value their time

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