As Radix is primed as a Global Scalable Network based on a stable coin, my view of its economic model should be the following:
To current economic model the XRD is based on, the IMF SDR’s, is bound to fail as the whole Monetary System is in shambles. Also the “trust” factor of AM’s is a shaky one as they can easily pack up and disappear with the FIAT. As an extra side note, with negative interest rates, which AM would or is going to hold massive amounts of cash in bank accounts if you would have to pay the banks to hold your money there! Or AM’s should be free to invest or make a return on the deposits! Who is going to audit the AM’s and who will pay the costs for this!
Radix – XRD – should be decoupled from the XRI and be able to be a free floating token/coin for the benefit of the Radix DLT company / network or Foundation and its Developers and Investors. A stable coin has no value here as you are a for profit company.
Then for the Real non-collateral Stablecoin based on our Global Economy we do need a two token model:
XRI – Radix Index
RAN or Rankh \ Radix Ankh (symbol of Life) or other name
For the RAN as an Ai non-collateral Stablecoin to be successful it should be pegged to the sustainable and also predictable growth trend of the global economy, this will give long term price stability, preservation as a store of value / purchasing power, and protection against inflation.
The World Measuring Unit:
WMU is an Artificial Intelligent Financial Index that takes the Global Domestic Product / GDP of the worlds economies, as of now there are 193 countries, include some extra indicators and sovereign bond metrics of the top 12 strongest economies, and you would have a natural non-collateral stablecoin.
The WMU will be Decentralized based on our worlds economies.
As the WMU ai network grows it will become more and more accurate, data is readily available for the past 50 years.
The RAN will be pegged 1:1 to the WMU.
Ran will be the main currency token (along side the XRD for the Radix Network) which can be used for payments, hedging, or a store of value.
Together with the XRI which will be used for stabilizing the RAN and to ensure it will stay pegged to the WMU.
XRI cannot be used as a means of payment or transfer or transferred to/from other token holders.
It is used mainly as it is now in its current economic role with Pmin / Pmax, or Expansion and Contraction Events to keep the RAN price stable and in equilibrium with the WMU.
XRI holders can redeem coins for RAN which they burned during Contraction Events or redeem for RAN during Expansion Events. XRI holders will benefit from incentives, discounts during those auctions. Any user has the possibility of participating in the system.
Decentralized Dutch Auctions
To keep the RAN pegged 1:1 to the WMU, we have two main events: Contraction Events and Expansion Events and would work like the Dutch Auction model in a Decentralized way.
Contraction Event: RAN price is below the value of WMU due to decrease in demand, and kicks in the Decentralized Dutch Auction system with rewards to encourage token holders to exchange their RAN for XRI and in this way stabilize with the WMU.
Expansion Event: RAN price is above the WMU due to increase demand, and kicks in the Decentralized Dutch Auction system, with rewards to encourage token holders to exchange their XRI for RAN at favorable exchange rates.
If for any reason equilibrium is not met, RAN could be airdropped to holders for the price to return to the 1:1 WMU.
I think Radix and our world community as a whole will benefit greatly from RAN as a stablecoin based on our World’s Economy as the measuring unit.