A Stable Coin with Pro-rated Rebasement and Price Manipulation Protection
Jose I. Orlicki

TL;DR
This paper introduces Toroid (TRD), a self-sufficient, stable cryptocurrency utilizing pro-rated rebasement and transaction-based mechanisms to reduce volatility and prevent manipulation, suitable for commerce and investment.
Contribution
It proposes a novel stable coin model with endogenous rebasement controls and manipulation protection, enabling low-volatility and incentivized early adoption.
Findings
Rebasement reduces price volatility effectively.
Protection mechanisms make manipulation economically infeasible.
Early bootstrap incentives promote adoption.
Abstract
An existing pseudo-commodity and a smart contracts framework allow the creation of a purely automatic and self-sufficient price-stable cryptocurrency, without human intervention. This new currency, we denominated Toroid or TRD, can be used more extensively for commerce than pseudo commodity cryptocurrencies due to its lower volatility. Also, is suitable for investment, as the tokens in each account multiply, return interest, when the market grows. Like the controlled fiat money of a central bank plus the benefits of an inflation-adjusted perpetuity bond. Collateral in base coin, for example BTC or ETH, can be added to bootstrap your own Toroid investment or withdrawed after a very small investment period. So, the Toroids are not created from nothing nor have a limited monetary base. The minimum investment period can be very small, for example one day, and you keep the interest but you…
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Taxonomy
TopicsBlockchain Technology Applications and Security · Economic theories and models · Financial Markets and Investment Strategies
