Flatcoin: The First Crypto Pegged to the Cost of Living

Flatcoin: The First Crypto Pegged to the Cost of Living

Blockchain development company Laguna Labs has launched a new cryptocurrency called Nuon. They say it is the world’s first decentralized and overcollateralized flat coin. The idea is that Nuon is an inflation-resistant currency designed to protect purchasing power. Definitive word: With balanced cash, a hamburger bought today will cost the same as a hamburger bought five years ago. Laguna Labs says, “Unlike most stablecoins, which are tied to depreciating assets like the US dollar, flatcoins’ value is based on unbiased, authentic daily on-chain inflation data. 

This means that the purchasing power of a Nuon remains constant or unchanged from purchase to sale.

Nuon testnet

If you want to play, you can try Nuon’s embossing mechanism. The first protocol test net is here. Developers and enthusiasts can get involved early on and maybe be a part of the new project’s growth (or demise). Stefan Rust is CEO of Laguna Labs: Cryptocurrencies have relied on depreciating centralized assets for their stablecoins for too long.

Not only does this pose a concentration and counterparty risk, but it also doesn’t accurately reflect people’s lives. Nuon offers a viable alternative to this system and is the first cryptocurrency to solve a massive real-world problem today: inflation. Fully decentralized, over-collateralized, and censorship-resistant, Nuon is the first digital asset aimed at helping people preserve their purchasing power.

Flatcoins Vs. Stablecoin

Inflation is skyrocketing worldwide, and fiat money is depreciating rapidly. Lagona Labs says flat coins have been the talking point for several blockchain founders. Balaji S. Srinivasan, former Coinbase CTO, explored the flatcoin concept in a series of Twitter threads. He saw it to prevent US dollar devaluation in stable digital assets.

Ethereum founder Vitalik Buterin said in a recent podcast that cryptocurrencies should be ready to wean themselves from over-reliance on assets. In addition to regulatory risks, this is also intended to avoid a possible concentration. Buterin said a peg to an unbiased consumer price index could be an alternative option. Brian Armstrong is the founder of Coinbase. He said, “In the crypto economy, I think we need a currency that is not tied to fiat currency.”

We have USD coins backed one-to-one by the dollar, and then we have decentralized stablecoins like DAI, but it would be nice to have a stablecoin like a flatcoin tied to purchasing power. For example, one coin can buy a McDonald’s hamburger today, and hopefully, five years from now, one currency can still buy a McDonald’s hamburger.

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