The post-Covid-19 period has introduced the problem of inflation to the fore, resulting in elevated curiosity within the Web3 house within the growth of flat cash, a detailed “cousin” of stablecoins designed to cut back the danger 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 thought of flat cash could appear interesting, they’re extremely questionable conceptually and design-wise. In the end, the success of flatcoins will rely 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 deal with 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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