Half-life stable coin white paper

General
1

Half-life stable coin white paper

Summary

This text will be hidden

  1. Introduction

Stablecoins pegged to legal currency are widely used in modern digital currencies. However, the design of value stability, cycling speed, and economic incentives is still in the process of development. In this project, we will propose a physical collateral and circulating stable coin model with reference to the mechanism of the “Nengu rice economy” in the Edo period.

⸻

  1. Overview of the annual tribute economy

In the Edo period, in rural areas of Japan, the economy circulated by farmers producing rice and paying some of the crops to the clan as tribute. The annual tribute rice was used as a salary for feudal retainers, the sale of the clan’s market, and as a reserve in the event of a disaster, contributing to the stability of the local economy.

Flow of the annual tribute rice economy (simplified)

Farmers → Collection of tribute → Salary and market distribution of feudal retainers → Merchants → Urban consumption

⸻

  1. Modern stable coin model

Modern stablecoins are issued on the basis of collateral such as legal currency and cryptographic assets, and are circulated among users. Maintain price stability by controlling collateral and adjusting the amount of coin issuance and supply.

Stable coin flow (simple)

User → Collateral Deposit → Coin Issuance → Distribution between Users → Value Stability by Collateral Management

⸻

  1. Flow comparison of annual tribute rice-type stable coins (bullet format)

• Production and issuance

• Annual tribute rice economy: Farmers produce rice → Annual tribute rice collection

• Stable coin: Users deposit assets → Coin issuance

• Collection and management

• Annual tribute rice economy: annual tribute rice inspection and warehouse storage → Hanzo

• Stablecoin: Security of collateral assets → Adjustment of issuance amount

• Distribution and distribution

• Nengong U.S. Economy: Salary of feudal retainers → Market sales → Merchants → Consumers

• Stablecoin: Sending and receiving between users → Exchange/Wallet Distribution

• Value collateral

• Nengong U.S. Economy: Storage in Warehouses → Disaster and Domain Financial Adjustment

• Stablecoin: Collateral Asset Management → 1:1 Fixed / Algorithm Value Stability

• Circulation

• Nengong Rice Economy: Farmers → Domains → Markets → Merchants → Consumers

• Stablecoin: User → Collateral → Coin issuance → Distribution between users → Collateral management

⸻

  1. Characteristics

  2. In-kind collateral type

Apply the concept of in-kind collateral of the annual rice economy to enhance the value stability of coins.

  1. Circular economic design

Incorporate the flow of collection, distribution, and market circulation, and provide a mechanism for currency to circulate without staying.

  1. Half-life and scarcity design

Inspired by the rice yield and annual tribute rate, it is possible to introduce the issuance limit and half-life rules for stable coins.

  1. Distributed management

Smart contracts make it possible to stabilize value without going through a central manager (optional).

⸻

  1. A summary

This model is an application of the annual tribute rice economy of the Edo period to modern digital currency. By replacing the simple and effective economic flow of “collection, storage, distribution, and circulation” with digital assets, stablecoin stability and distribution efficiency can be realized at the same time.

As a future development, we will incorporate half-life design, interest granting, cycle speed optimization, etc., and aim to operate as a unique new financial ecosystem.

⸻