Get ready to experience the first-ever mineable relatively-stable value coin

[stepwilli]

This is like saying "let's send people to Mars". You could spend hours describing the benefits of doing that, but your dreams will be crushed by all the difficulties of actually implementing it. Stability and decentralization don't work together, because any stability is achieved through a single actor acting as a stabilizer. Besides, if your system uses a centralized asset like fiat currency as its collateral, it will always be an inherent risk itself - fiat currencies can crash, or the government can block this decentralized system from accessing its centralized systems.

Don't worry, theymos has already guided on how on bringing stability and decentralization together:

What I dont understand is how can he guarantee or promise that the price of the token will be $1. It is not really that easy is it?

This is totally unrelated to this particular token, which I don't know anything about and only spent 30 seconds skimming, but you could do a stablecoin in a mostly-decentralized way like this:
 - Call the stablecoin "SSCN". There's also another token which is part of the same system called "SBND".
 - When the price is below $1, the system automatically creates x SBND tokens and sells them for SSCN tokens in an automatic auction process. This destroys SSCN coins, reducing the supply and therefore increasing the price.
 - When the price is above $1, the system automatically buys y SBND tokens in return for SSCN tokens in an automatic auction process. This creates SSCN coins, increasing the supply and therefore reducing the price.

(Speculators would buy SBND tokens if they think that SSCN is going to become more popular, and sell them if they think that SSCN is going to become less popular.)

A decentralized system cannot know anything about prices, so some centralized entity needs to provide SSCN's price to the system as an input. This is an unavoidable point of centralization. But everything else, such as determining x and y above and conducting the auctions, could be done automatically.

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[bearexin]

I don’t know fully how these things are being done, but based on what I know, which I am very sure of,stablecoins are pegged with a currency or asset to back it up and that would mean they will follow the same market trends as the underlying asset; for example: I have seen stablecoins that are backed by gold and other precious metals, that means holding these stablecoins is like holding that same underlying asset; if you’re holding USDT that is pegged with the dollar, you’re basically holding a dollar and the coins that are stored in your wallet will always be $1 to $1, and something that is pegged with the dollar is likely centralized right? So what will your stablecoin be pegged with to make it decentralized?

[ampu]

Not because there is no organization sponsoring them. Even today's stable currencies need a fund in the back. I thought it would be very difficult to make such a currency, I wonder how it works.

[LazerPanther]

Not because there is no organization sponsoring them. Even today's stable currencies need a fund in the back. I thought it would be very difficult to make such a currency, I wonder how it works.

Well, I wonder how stablecoin would work if it were decentralized. There won't be any USD backed, and the stablecoin could crash any time. Obviously this is an impossible idea

[xZork]

We all know that we only use such coin as a temporary safe haven for our assets when trading and since most of us already got used to Tether then I think a new one will only got small to no attention at all . Thus, will end up as a failure.

I agree, a stablecoin is only useful when we want to shelter our assets amid market fluctuations. I do not appreciate stablecoins in hold value, if one day I want to keep dollars I will definitely choose cash instead of USDT.
A new stablecoin project is not necessary for today's market.

[beerlover]

Inherently impossible. How could you manage to make your money come to your bank account if you want to turn your stable coin to fiat? I mean you need a place that is keeping it at that value, without that centralized place keeping it at that value who would keep it at there? Think about it, right now Tether company is giving everyone 1 dollar per USDT they are giving them, it is a big success so there is more people wanting more USDT from them compared to people who wants to sell their USDT back for fiat, which is why it is such a huge thing.

However if you create a new USDT type thing and there is no central organization, who will give 1 dollar for it? Nobody. You would expect the public to do it for you? That is not possible and that is why there is no such thing as decentralized stablecoin.

[Romanianz]

Isn't Dai already a decentralized stablecoin? Or have i completely misunderstood it? I don't yet quite understand how makerdao / crypto-collateralized systems works but i think Dai is decentralized.

agree, DAI value pegged 1:1 USD is backed collateral by ether locked in smart contract

[hatshepsut93]

Don't worry, theymos has already guided on how on bringing stability and decentralization together:

A decentralized system cannot know anything about prices, so some centralized entity needs to provide SSCN's price to the system as an input. This is an unavoidable point of centralization. But everything else, such as determining x and y above and conducting the auctions, could be done automatically.

This is pretty big, if a decentralized system relies on another centralized system, its own decentralization isn't that valuable. In this scenario this price input feed can be taken down or taken over by malicious party to disrupt the stablecoin. And as practice shows, if attack is possible and practical, it will be executed sooner or later - altcoins getting 51% attacked is a good example. I don't see any point in these hybrid centralized/decentralized systems, they have the biggest flaws of both without the main benefits.

[stepwilli]

Updated OP based on your inputs. Still looking for more of your thoughts. (Edited subject as well to reflect the changes )

[pokeronlinestatus]

So, you are going to air-drop some of your coins?

It has been very long gap since I enjoyed the BTC forks and its free rewards. I am honestly looking for launch of your stablecoin.

Edit:

It means you do not need to rush to sell your rewards but you may get chances to get continuous passive income through POS in relatively-stablecoins which is not a thing this crypto space has ever experienced.

This is really convincing. I have tried many POS coins as well but when I somehow managed to hold some of them (by staking) its value on exchanges will fall significantly to make my ROI suffering. But, when the value of your coin remains stable or relatively-stable, I guess I can make good ROI.

your rewards may value $100 today and may value $98 tomorrow but through POS, you may get chances to make your $100 into $150 or $200 as it is all about a relatively-stablecoins and NOT about other usual highly fluctuating coin.

Rewards means what you get me through air-drop? Yeah, I will not sell them immediately but I will plan up for staking to get stable passive income .

[stepwilli]

So, you are going to air-drop some of your coins?

Not exactly an aridrop but you may get some coins based on your rank on this forum or based on number of BTCs that you are holding with any balances or based on both.

You may claim your free share and may rush to convert them into BTC or ETH but it is highly recommended to go for staking within your wallet as it will be a POS coin with annual returns of 6% in terms of relatively-stablecoins. It means you do not need to rush to sell your rewards but you may get chances to get continuous passive income through POS in relatively-stablecoins which is not a thing this crypto space has ever experienced.

Because, your rewards may value $100 today and may value $98 tomorrow but through POS, you may get chances to make your $100 into $150 or $200 as it is all about a relatively-stablecoins and NOT about other usual highly fluctuating coin.

[tycsols]

Update : 10 sept 2020

After lots of concern (from this community) on mechanism on maintaining stable value, decided to launch a relatively-stablecoin (r-stablecoin) which will be under progress which are meant for making it achieving the level of stablecoin over the years.

As of now, it is all about having a community based, mineable relatively-stablecoin with few criteria and assumptions[1].

A coin may have any value (like bitcoin or any other cryptocurrencies) but for the reason of simple-to-use, we assume to have one unit of this coin to have one USD value. (It may fluctuate based on supply and demand on open markets but when more people adopt and use it, it will trade around exact $1 always which is the state we may assume it has achieved the level of stablecoin until then it will remain as r-stablecoin).

There are 2 finalized methods to start (only one will be implemented):

1. A POS coin with 6% staking rewards per annum and the initial distribution will be like clamcoin.

2. A POS coin with 6% staking rewards per annum and with premine to distribute to this forum members based on their ranks and to all BTC holders by verifying them by signing a message (which will be like byteball coin).

Method-1 is fully fair distribution but makes lots of coins locked forever as whales may not prefer to claim a $10 with their private key.

Method-2 is the usual practice of all POS coins. Devs can have shares and can reserve funds for future developments (like listing on exchanges).

[1]Criteria and assumptions for the need of this project:
1. The need of problem free non-corporate stablecoin is time proven. So far, crypto space does not have any non-corporate stablecoin.

2. This coin will not be like other usual stablecoins which are based on unverifiable reserve based. To solve the problem of improper reserves for a stablecoin (and even almost all countries fiat's reserves are improper as per many economists), we need to REMOVE the centralized reserve and from this point, the concept of having decentralized reserve based stablecoin is originated. So, we are going to assume to have bitcoin on blockchain as reserve for this coins. Hence all bitcoin holders can mint/ can have initial share of this coin's total supply and will mint new coins through staking (POS).

3. In other words, it is all about decentralized (non-corporate) stablecoin hence the reserves for this coin is need to be decentralized. Hence, bitcoins on our addresses are assumed to be the actual reserve for this r-stablecoins and all the bitcoin holders deserve the right to mint their propositioned share on total supply (which is not practically possible hence we mint and do distribute (by one of either methods as described above)).






I have been thinking about non-corporate stablecoin for years. Due to some reasons, I am still hesitating to go for it.

The need of stablecoin is already proven. But, we are having so far only centralized stablecoins.

I am proposing here about mineable-community based-fully decentralized stablecoin with zero pre-mine.

(As, this would be a non-profitable project from dev's perspective (but this crypto community may start using a stablecoin without any hesitation), I cannot afford to pay exchanges for listing. But, if a coin is preferred by this community then exchanges may go for auto-listing.)

Development and launch of such a stablecoin should be community driven.

Let's us discuss.

Have to say that this project seems innovative and unique, I mean stable coin value and stable income from mining soumds ideal, It will not only make calculations easy but will also bring mining to masses so really looking forward to this coin.

[kindbtc]

Nice idea, concept and solutions especially for people interested in mining and making a steady income online via the crypto coins or crypto market as a whole.

[TimeTeller]

This is like saying "let's send people to Mars". You could spend hours describing the benefits of doing that, but your dreams will be crushed by all the difficulties of actually implementing it. Stability and decentralization don't work together, because any stability is achieved through a single actor acting as a stabilizer. Besides, if your system uses a centralized asset like fiat currency as its collateral, it will always be an inherent risk itself - fiat currencies can crash, or the government can block this decentralized system from accessing its centralized systems.

Most ideas only ended up as mere ideas. So I don't think what the OP is laying out here will be realized.
And if it is a community-based project, I don't think this will gonna push thru.
Getting long-term interest of the community is very hard. And if you will not see actual movement, I guess this one will be forgotten.
So once the OP decided to go for real on this project, just let us know. Start by purchasing your own domain name for this project.

[dunfida]

This is like saying "let's send people to Mars". You could spend hours describing the benefits of doing that, but your dreams will be crushed by all the difficulties of actually implementing it. Stability and decentralization don't work together, because any stability is achieved through a single actor acting as a stabilizer. Besides, if your system uses a centralized asset like fiat currency as its collateral, it will always be an inherent risk itself - fiat currencies can crash, or the government can block this decentralized system from accessing its centralized systems.

Most ideas only ended up as mere ideas. So I don't think what the OP is laying out here will be realized.
And if it is a community-based project, I don't think this will gonna push thru.
Getting long-term interest of the community is very hard. And if you will not see actual movement, I guess this one will be forgotten.
So once the OP decided to go for real on this project, just let us know. Start by purchasing your own domain name for this project.

Wont  oppose into these words yet these are actually part of the reality and this is where some projects do target on which its somewhat revolutionary but the question is?
would they able to make it real or happen? There are lots of factors needed before a project would be realized and it wont really be that simple as it sounds.
Just like what you said these ideas as just mere ones and community recognition will always be on question when it comes to success talks.

[bitmover]

3. In other words, it is all about decentralized (non-corporate) stablecoin hence the reserves for this coin is need to be decentralized. Hence, bitcoins on our addresses are assumed to be the actual reserve for this r-stablecoins and all the bitcoin holders deserve the right to mint their propositioned share on total supply (which is not practically possible hence we mint and do distribute (by one of either methods as described above)).

I don't think this will work.
Let me explain:

Tether, USDC, etc are all the same as a private debt.

WHen binance buys 300 million USDT  from tether, they give 300 million USD to tether, and tether will pay it back to binance when Binance asks for that money. At any time.

Because tether own that USD. So it is a loan. Simple as that And the market assumes that this debt will be fully paid, anytime, by bitfiniex/tether company.

The problem with your stable coin is that your reserve is simple not yours.

How can you sell a token backed by MY bitcoins to someone else?

Let's suppose Binance decides to buy your coin. Binance wants now 50 BTC of your new bitcoin-stable-coin. How will it works? How will you honor the debts you have, if you are making loans with someone else's money as a warranty?

Edit:
The thing is: Other people' bitcoin is not for sale. You cannot negotiate them.
How will a person who holds 50 BTC-of-your-stable-coin will redeem that to a real bitcoin?

Additionally. If you say "they will trade it for btc in binance". Then people are getting OTHER btc. You are just fractional banking bitcoins.
The problem with this approach is that soon (and by soon I mean instantly) people will realize that this coin is backed in nothing and 50 BTC of it will be worth less than the transaction fees.

[GazetaBitcoin]

OP, if you want to do something really unique, I suggest you to make a (r-)stablecoin pegged to any other currency but USD. There are already several cryptocurrencies (more or less decentralized) pegged to USD. Since the project is still in planning phase, I believe this wouldn't be a problem. My suggestion would be to create a coin pegged to a currency used worldwide, maybe not so much as USD, but at least close to USD's usage. Such currencies are Euro and BGBP. As far as I know, at the moment there isn't any cryptocurrency pegged to other currencies excepting EURS and Binance's GGBP^*, so this would be something unique. Not to say that there isn't any cryptocurrency pegged to EUR / GBP yet, which is also mineable.

^* Indeed there is one cryptocurrency pegged to Euro - EURS - and one pegged to GBP - BGBP - but there are only two and not mineable. There are no similar cryptocurrencies on the market.

[stepwilli]

How can you sell a token backed by MY bitcoins to someone else?

You will receive those tokens (for free of cost) based on your number of BTC addys. Technically every BTC holders got the rights to mint themselves those tokens but practically that is not possible hence we mint and distribute to you.

We are going to print those tokens only 10% of market capitalization of bitcoins and then you may start staking to continue further printing of those tokens. (With 6% annual inflation on that token, we will never reach 100% of BTC capitalization).

We cannot verify how many BTCs that you are holding hence for simplicity we take the count of BTC addys with any balances as an eligibility criteria to get free tokens (and being a member of this forum is another eligible criteria).

For simplicity in context, we use our coin as token but it is a mainnet coin with POS feature.

We just named our coin as bollar.

The problem of existing stablecoin is improper reserves. They may print more stablecoins than their actual reserve which may lead to collapse over the time and governments may seize such stablecoin companies for any reasons like how they did with LR and few other payment processors.

Hence, to avoid such problems, we must need to go for distributed-reserves and with no central authority.

This way, for your 50BTCs, we mint some coins and give to you and then you may stake them further. When more people focus on staking, the dumping of this coin will not happen. Also, we have arranged few liquidity providers who will keep bumping this coins for their own benefits (like they they keep buying if this coin falls below 99 cents and may sell if prices reach $1.01).

Hope I have answered your question and please let us know if you still have any questions. Moreover we must thank you for asking such a good question. We look for such more questions so that this community will get more clear idea about this project.

[bitmover]

Hence, to avoid such problems, we must need to go for distributed-reserves and with no central authority.

This way, for your 50BTCs, we mint some coins and give to you and then you may stake them further. When more people focus on staking, the dumping of this coin will not happen. Also, we have arranged few liquidity providers who will keep bumping this coins for their own benefits (like they they keep buying if this coin falls below 99 cents and may sell if prices reach $1.01).

Hope I have answered your question and please let us know if you still have any questions. Moreover we must thank you for asking such a good question. We look for such more questions so that this community will get more clear idea about this project.

Thanks for your answer.

I am brain storming here. I am no specialist, but what I think is:

The largest stable coins, such as usdt usdc, work because they are centralized. If the central authority print more than they can pay (and they stop paying their old debts with exchanges), they will lose their reputation and the price will fall.

If tether goes to 0.99 people start buying because they trust bitfinex will pay 1 for each.

Now let's suppose I have 50btc and you airdrop me 5btc worth of bollars (1bollar=1btc).  I can instantly dump them and get 5 more btc.
If everyone start doing so, the price will keep falling . If the price is now 1bollar=0.5btc I will keep selling because that was free money anyway. I trust more btc than bollar

I would even sell at 0.00001 btc
You can stake, but the interest rate is smaller than the price drop.

How to solve this?

You need to create a real demand of your coin. Scarcity by no way means demand. Why would 1 bollar be worth anything? Why would someone stake them, if the value just keep falling?

You cannot control a price with scarcity only, you need demand.

Who will keep paying 1btc for each bollar? Bitfinex will pay 1 usd for each usdt. I trust that more than I trust that someone will pay 1btc for each 1bollar (for a billion usd volume)