The post-Covid-19 period has introduced the difficulty of inflation to the fore, resulting in elevated curiosity within the Web3 area within the growth of flat cash, a detailed “cousin” of stablecoins designed to cut back the chance of inflation.
Many present flat cash, equivalent to Terra’s TerraUSD (UST) stablecoin, are algorithmically backed, a stark reminder of the dangers related to algorithmic backing, as demonstrated by the collapse of LUNA and UST. So, whereas the concept of flat cash could appear interesting, they’re extremely questionable conceptually and design-wise. In the end, the success of flatcoins will depend upon whether or not builders can ship on their promise.
Peter Hahn has a Ph.D. in finance from the College of Illinois at Urbana-Champaign with a give attention to monetary intermediation and fintech, along with an M.B.A. in monetary engineering. He holds a BA in English and a BA in Arithmetic from Tianjin College, China. Previous to becoming a member of IoTeX, he labored at PwC in Beijing, the place he focuses on tokenomics-related analysis to enhance the tokenomics design of IoTeX.
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