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Author Topic: VAL - Giving Crypto Real Asset Value Stability  (Read 635 times)
supermoose
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September 24, 2014, 01:04:35 PM
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Hi all,

I'm writing now to announce the development of a new style of coin that would give genuine asset value stability for those holding it, without relying on giant walls.

The coin is intended to automatically adjust to movements in price to give it stability in terms of value. Like an aeroplane being returned by air to its original direction after a change in direction, market volatility would act on the coin's numerical value to return it to a stable asset value.

The concept is relatively straightforward. You have (let's call them VAL for the sake of the example) 100 VAL in your wallet. These are being traded on an exchange, and the price is volatile. With other cryptos, you would have a big bag of risk in your wallet, which you may mitigate through trading the swings. However with VAL the numerical value of the VAL in your wallet would change with these swings.

Let's say your 100 VAL have just gone up in value 20% on the exchanges VAL is traded on. Your VAL would then decline in numerical value to (100/120), so you would only have 83.333... in your wallet. Needless to say, this would be applied if VAL were to decline in value. In this example you would mitigate the inherent risk of holding crypto by keeping the same asset value equivalent of VAL in your wallet.

This is of course a simplified version of how a stable crypto would work in practice, as the currencies and cryptocurrencies VAL would be traded with would be themselves fluctuating in relation to others. For real stability, the numerical value of VAL would adjust to fluctuations in the value of the (crypto)currencies it is traded with.

Due to the time value of money, the real value of the coins in your VAL wallet would increase over time for VAL to remain a stable investment.

For logistical reasons of transferring the coin from one address to another, transfers would be carried out using equivalent values of VAL. For example, if you wanted to transfer US$100 to an address different from your own, the VAL transfer would equivalent in value to US$100 at the time of transfer.

The coin would:
- Monitor VAL value on each exchange it is traded on, requiring regular updates if it is adopted widely
- Monitor the values of currencies and cryptocurrencies traded with VAL
- Adjust in numerical value in response to these price shifts
- ? ? ?
- Profit

Please PM me if you are interested in or would like to get involved in the project.

Seeking devs and economists with good statistical background.

Supermoose
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