MonetaryCoin To Launch An Advanced ERC20 Token Based On Ethereum
One more blockchain-based project has joined the market several days ago. The official website of the MonetaryCoin’s ICO has come up with a countdown to the next sales window end. The project’s white paper has already been thoroughly analyzed and partially presented in the audit report. There is not much time left to purchase tokens in the early stage.
The MonetaryCoin white paper states that “the coin serves as a simplified alternative to domestic fiat so that residents may select from the short-run decisions of their central bank while still retaining money tethered to the long-run progress of the national economy.” This thesis is a direct reference to monetarism, and the MonetaryCoin project is based on it. Monetarism is a macroeconomic theory which provides the idea that money supply should be adjusted according to changes in the economic activity volume.
The audit report of MonetaryCoin is available since May 21, 2018. It contains 25 pages and reveals a lot of details about the project, including a diagram of contracts, interfaces and libraries, a programming code, etc. In particular, the report shows that MonetaryCoin corresponds to the ERC20 standard, which allows members to buy and trade tokens as in any other ICOs.
The tokens may later be used for profit gains but for that they must be involved in the internal processes of the project. The owner may decide to commit tokens to Proof-of-Stake forging and withdraw them from forging using a special blockchain transaction at any moment. Tokens returned to the owner bring an additional profit that goes along with GDP changes. These changes are tracked by a special oracle system intended to control the correlation of token supply according to GDP.
MonetaryCoin offers a new way for handling negative GDP periods: M5, a special type of tokens, is used to handle negative GDP changes. During negative GDP periods, those who chose to commit tokens for Proof-of-Stake forging will not be rewarded with more tokens like in a positive GDP period. They will be rewarded with M5 tokens instead. This is a distinct token which can be traded back to a “regular” MonetaryCoin token only when the GDP change is positive once again. This feature will motivate users to commit tokens for forging while the GDP growth is negative in alignment with the monetarism economic theory.
Each country that reliably reports GDP will have its own coin. The initial number of coins will not exceed 1% of that country’s money supply and will not have a strong influence on a national currency.
MonetaryCoin offers a unique set of features. It combines blockchain technology with the features of a traditional economic theory, and this integration is worth paying attention to.