The currency will move above dollar parity to offset any bellow parity.

https://vimeo.com/931539769?share=copy

Thanks for the reply!

I am trying to wrap my head around this concept, but I still did not figure it out how it works. Can you simplify a bit and in shorter sentences?

YCombinator advices applicants to "explain it like I am 5 years old". You have 1 minute to say in intro video what is your idea and it is better to concentrate on Why not How.

Hi! I am Aleksandar and I am Software Engineer with 9YOE from east Europe.

My goal is to create semi stable crypto currency.
What this means?

It is basically currency that is allowed to temporarily depeg in the short/medium run against 1-1 with the dollar but maintain peg to dollar in the long run by offsetting previous depegs.

Example:

If it is depegged for 1 year at 1=.8 dollars then the system will target 1=1.2 dollars in the next year so it makes up for any undershooting in the past. This is all done by our system that runs on autopilot.

In macroeconomics this regime is called level targeting regime. Inspiration is NGDPLT (Nominal GDP Level targeting) regime proposed by Scott Sumner.

I see lots of use cases for this.

1. The main one is to be lender of last resort. This currency will enable Crypto stabilization agency by providing unlimited cash in the short run to exchanges to prevent bank runs. This is nothing more then creating digital version of the FED. This is the reason FED was created in 1913.

2. It can also be used for crypto version of FDIC (up to 200k in OUR currency).

If you are interested to be cofounder or just to discuss contact me at Telegram @aidxb or here. We need to record a video somehow and submit to Ycombinator.

I also received a feedback and few people told me it seems like a scam. I am interested why do you think it is a scam?