CJ - Cryptocurrency Specialist
The first "flat" cryptocurrency in the world aims to preserve users' buying power
The value of Flatcoin Noun, which measures cost of living, is based on daily US inflation statistics
The first cost-of-living cryptocurrency, named Nuon Flatcoin, was just released by Laguna Labs. This test token, in contrast to other fiat- or commodity-pegged stablecoins, is meant to serve as a countermeasure to everyday inflation, according to the business.
It is a brand-new kind of stablecoin that was sparked by conversations and ideas put out by Vitalik Buterin, co-founder of Ethereum, Brian Armstrong, CEO of Coinbase, and Balaji S. Srinivasan, former CTO of Coinbase. All three have discussed the requirement to develop a coin that enables consumers to maintain purchasing power. The company stated in a news release that "the value of a Nuon flatcoin is based on daily unbiased, genuine, and on-chain inflation data." It denotes that from the time of purchase until the time of selling, the token's value stays "flat" or constant.
Additional Related Projects
Other stablecoins have designs that follow a similar idea to the Frax Price Index (FPI), which Frax Finance introduced in April and monitors the consumer price index (CPI). The cryptocurrency that used Oracle data from ChainLink was initially introduced with a value of $1.02 and eventually achieved a maximum price of $1.18 before remaining at $1.05. There is also the Volt Protocol (VOLT) token, which measures CPI, but neither bigger exchanges like Binance or Coinbase, nor well-known data providers like CoinMarketCap or CoinGecko track its price.
Hedging Coin (IHC), which debuted a year ago, is another cryptocurrency connected to inflation. Various burning processes are used to enhance its value, which is based on yearly inflation statistics and the US CPI's monthly growth rate.
According to Stefan Rust, CEO of Laguna Labs, stablecoins have historically been built on decentralized, depreciating assets, which creates a "concentration and counterparty risk" and does not truly reflect people's daily lives.
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