I am working on building a coin that will be useful in providing UBI, but need a method to maintain the price of the coin, so that it doesn't fall below threshold.

Here is the idea: So every month, each person will be paid 10,000 Dollar-Tax coins.

But dollar tax coins has the special property of disappearing. More time you keep the money, the more will be the transaction cost. The amount of money lost per time is equal to 10,000/ 24 months in minutes. An analogy can be the speed, the distance covered is 10,000 and speed will be 10,000/24 months in minutes.

So, if you keep 10,000 dollar-Tax coins a day, you will lose 13.888 (10,000/(24months*30days)) dollar-Tax coins.

After coins are burned, new coins will be minted to pay UBI again.

But how to maintain the price, as their is burning of coin, will the price will rise? How to make sure that the price don't fall below a threshold. Like use some reserve, but don't know how to implement it or start burning more fast when prices goes below threshold. Any ideas and problems with this model are welcome.

  • 1) be aware that a token holder can potentionally safe taxes by generating a new address and sends token to that address. 2) I think you should be fine by just safing the fiat/token price in a contract. Is that what you want? Aug 10 '20 at 5:35
  • 1) For new address problem KYC will be done. 2) I don't care if prices go above the fiat/token price, only need make sure it doesn't go below threshold. Aug 10 '20 at 5:38
  • You say: "After coins are burned, new coins will be minted to pay UBI again." That means the amount of token circulating does not change, right? That should mean that the price does not change. Aug 10 '20 at 5:46
  • Yes, the amount of token circulation doesn't change, but price (the exchange rate) can change due to more or less demand. Aug 10 '20 at 5:54
  • Also, token circulation at any instance may be different, as UBI will be minted in the 1 week of month. Aug 10 '20 at 5:57

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