 |
May 09, 2016, 06:12:42 PM |
|
I think ideas for pegged currencies have been proposed before, but here is one that I think is novel (tell me if it isn't).
First, choose what you want to peg. It can be gold, USDS (ugh), oil, hours of labor, global economies, stocks, land, bread, electricity, mining rigs, baskets of things, etc...
Let's say we are doing Bitcoins (ironically).
Now, there are two currencies: BitcoinCoins and TradeCoins, supported by the same block chain.
First, develop a decentralized consensus protocol. This means you need to be able to have your blockchain determine a number in the real world. One way I saw to do this is that everyone puts in their answer, and whoever is close to the median gets payed, those that aren't don't. The idea is that everyone will submit the right answer, because they don't want to risk not getting payed.
Now, start your blockchain, and have miners mine TradeCoins. There are no BitcoinCoins yet, and you don't need the consensus protocol yet.
Now, once the TradeCoins start gaining value (maybe they have faster transactions times than other cryptocurrencies, or smart contracts, or something) you start phase 2 (you can hardcode phase 2 to start at a specific time based on when you are pretty sure it will have value).
Use your Consensus protocol to determine the value of TradeCoins relative to Bitcoins (you will be doing this every block for now on). Let's say 10,000 TradeCoins = 1 Bitcoin. (Note that you don't actually need a TradeCoin to Bitcoin exchange to figure this out. You can take TradeCoin to USD to Bitcoin to determine the exchange rate (or through any other commodities)). Now, you can destroy TradeCoins to get BitcoinCoins, and vis-versa. This will make BitcoinCoins equal in value to Bitcoins (or whatever commodity you chose to peg to)!
If BitcoinCoins ever get less valuable than Bitcoins, people will destroy their X BitcoinCoins to create Y TradeCoins and trade them for X Bitcoins. People will even buy BitcoinCoins with this explicit purpose. This will continue until BitcoinCoins raise in value to the value of TradeCoins.
If BitcoinCoins ever get more valuable than Bitcoins, people will trade their X Bitcoins for Y TradeCoins and destory them to create X BitcoinCoins. This increased supply of BitcoinCoins will decrease their value (or Bitcoins will increase in value as people buy them to take advantage of this scheme), until they are equal in value.
In reality, BitcoinCoins will follow the value of Bitcoins.
You could even have multiple commodities. You could have GoldCoins, USDCoins, EuroCoins, BreadCoins, TradeCoinCoins (actually, that would be dumb), etc... All based off exchange rates with TradeCoins.
What do you guys think? Would this work?
|
