Hi Guys,
Im a newbie not just to this for forum but the blockchain, crypto and smart contracts etc...
However being an entrepreneur I am very interested in finding ways to make some money.
I have a question regarding a token:
Is it possible to put in the tokens contract that the monetary value of this token can go up and down but never less than an X figure of fiat currency because the token is based on consensus that X=X because value of X cannot go lower than X?
Would be very grateful for some advice on that
Regards
Bainzy
That's impossible within the blockchain.
To do that you'll need fiat money reserves at a bank. Then you can increase and reduce reserves to keep a certain proportion to your tokens. If you have 2 tokes for each dollar in reserve you'll make its value U$ 0.50
Stablecoins THEORETICALLY hold their 1:1 parity with the dollar by having as many dollars as there are coins.
(Whether they really do have these reserves or not is another story altogether)
What if you built into the contract that the consensus is that x=x and that x is backed by an asset based both of things based on consensus.
Fiat is only based on faith, if a token can produce faith and be backed surely it is more valuable than fiat?
Also like fiat what is to stop tokens being created the same way fiat is, by debt, or by physical assets.
IT IS WHAT WE BELIEVE IT IS...... THAT'S MONEY TODAY, WHY NOT A DIGITAL ONE THAT DOES THE SAME BUT BETTER??