I have been working on an Ether-coupled stable price system, Zeny. Money over the period of years has existed with intrinsic and extrinsic attributes. I strongly believe stable private money must possess both intrinsic and extrinsic properties. The gold standard is a prominent example of such stable money possessing both intrinsic and extrinsic properties. The difficulty in acquisition of more gold to increase the circulating supply breaks the equilibrium of 1:1 ratio. To honestly support a global economy backed by gold would require an infinite amount of gold acquisition.
The system proposed relies on the following two simple principles,
a. Price system adjusts the circulating supply using dynamic reward rate to incentivize contraction.
b. Every Zeny is backed by a commodity (gas execution time) controlled by a set of decentralized actors. Assuming that the Ethereum universe U
E maintain utility value, the time within the universe U
E will have continual demand. Time would be an infinite resource supporting global circulating supply and verifiable using decentralized mechanisms.
The condition b. provides Zeny an intrinsic value and enforced exchange rate of one Zeny to 1.54 dollars worth amount of time brings advantages of extrinsic value.
The first draft of the concept is available at
https://github.com/arne9131/Zeny/blob/master/Zeny_Next_generation_Money%20(2).pdf Arne
