The post-COVID-19 period has introduced the difficulty of inflation to the fore, resulting in rising curiosity throughout the web3 area within the creation of flatcoins, an in depth “cousin” to stablecoins designed to mitigate inflation threat.
Many present flatcoins, like Terra’s stablecoin TerraUSD (UST), are algorithmically backed and due to this fact function a stark reminder of the dangers related to algorithmic backing, as evidenced by the collapse of LUNA and UST. So, whereas the concept behind flatcoins could sound interesting, it raises vital conceptual and design issues. Finally, the success of flatcoins will rely on the flexibility of builders to ship on their promise.
Peter Han holds a doctorate. in finance from the College of Illinois at Urbana-Champaign, specializing in monetary intermediation and fintech, along with a grasp’s diploma in monetary engineering. He holds a BA in English and a BS in Arithmetic from Tianjin College of China. He labored for PwC in Beijing earlier than becoming a member of IoTeX, the place his work focuses on tokenomics-related analysis aimed toward bettering the design of IoTeX tokenomics.
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