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DailyCoin: Launch of the First Stablecoin Associated to the Cost of Living

Launch of the First Stablecoin Associated With the Cost of Living
  • The goal of the world’s first “flat” cryptocurrency is to enable people to retain their purchasing power.
  • Flatcoin Noun tracks daily US inflation and calculates the cost of living.

Blockchain Laguna Labs recently launched Nuon Flatcoin, a cost of living cryptocurrency. The company stated that this test token, which is not fiat- or commodity pegged stablecoins like other ones, is meant to be an alternative for daily inflation.

It is a new stablecoin that was created from the ideas and discussions of Brian Armstrong, CEO and founder of Coinbase (NASDAQ):, Balaji S. Srinivasan and Vitalik Buterin. All three discussed the need to create a cryptocurrency that allows users retain their purchasing power.

“The value of a Nuon flatcoin is based on daily unbiased, authentic, and on-chain inflation data,” the firm said in a press release. It means that the token’s price remains “flat” or constant throughout its life, from its purchase to its sale.

Similar Projects

Other stablecoins are also part of a similar concept to the Frax Price Index (FPI), which was launched in April by Frax Finance. This index tracks the consumer price inflation (CPI). Initial launch of the crypto using Oracle data from ChainLink (NYSE:) had a price of $1.02, but it later increased to $1.18. It has since remained at $1.05.

There is also the Volt Protocol token (VOLT), which tracks CPI. However, its price isn’t tracked by major data platforms like CoinMarketCap and CoinGecko. It is also not listed on larger exchanges such as Binance or Coinbase.

Hedging Coin (IHC), a crypto linked to inflation, was launched last year. Its value increases after various burning protocols, based on the monthly rate of US CPI and annual inflation data.

On the launch of the Noun testnet, Laguna Labs CEO Stefan Rust commented that until now stablecoins have been based on centralized and depreciated assets, which represents a “concentration and counterparty risk” and does not accurately reflect people’s lives.

He added that Nuon is “the world’s first flatcoin [that] This cryptocurrency is a viable option to this system and the first to solve a real-world problem, inflation.

The Flipside

  • The inflation-linked stablecoins that have been minted so far are not showing any obvious success. These are so important that big cryptocurrency trading companies don’t take them into consideration.

Why you should care

  • The creators of Noun promise that the cryptocurrency is not only fully decentralized, but also “over-collateralized” and censorship-resistant.

Inflation is one of the greatest problems facing the largest economies worldwide. The world is facing a major crisis due to the constant rise in prices, which is largely due to pandemic stimuli and the Ukraine War.

You can also find related articles at these links:

Binance USD (BUSD) Is Winning the “Second Great Stablecoin War”

Aave (AAVE), Releases Technical Paper With New Details About Its GHO Stablecoin

See original on DailyCoin

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