HACKER Q&A
📣 quotz

Creating a Stable Cryptocurrency


To create a stable cryptocurrency that is both decentralized and non-collateralized is hard. You would need 2 requirements, measuring the exchange rate in a decentralized way, and controlling the coin supply. Both of these are difficult to make.

https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/

This blog by Vitalik Buterin kind of summarizes this and provides some solutions that are not perfect. Do you have any suggestions?

  👤 fishdontcry Accepted Answer ✓
"Stable" does not need to be synonymous with "pegged". Have a look at feron.io - it is an algorithmic monetary policy design that “resist change” in its coin’s price irrespective of the absolute price level. As a result, it requires no exchange rate measurement. It imports no information onto the chain at all, and instead infers what is happening in the outside world from users' on-chain behaviour.