ABLE Token Economy
ABLE Project #3
Extreme volatility is the barrier to the popularization of cryptocurrency. This causes criticism for the acceptance as a currency, and view crypto assets as commodities rather than a currency. Currency stability is important for it is the basis of value judgment and financial activities. The cases of Zimbabwe and Venezuela, where the currency is unstable due to extreme inflation, proves the importance of stable currencies.
There have been many attempts to acquire stability in crypto markets. Tether (USDT) tried to claim its value of 1USD per unit, but the centralized structure and operational transparency issues have not been resolved. It is based on trust in holding USD as much as the actual USDT issuance, but it is said to be a time bomb when it cannot be mutually verified.
The attempt to stabilize cryptocurrency has increased since, and another example is Steem’s approach to Steem Dollars. Steam Dollar aims to be 1USD of value. Steem Dollar maintains a relatively stable value by guaranteeing at least 1 USD.
In this juncture of the crypto space, the ABLE Project plans to establish its unique token economy that can provide stable services to users even without pegging to fiat currency.
Based on the ABLE Coins, ABLE Dollars, ABLE Power concept and ABLE Foundation capabilities, the master nodes vote on a variety of approaches to maintain stability and increase the long-term value of ABLE coins. It can be understood that through the ABLE Foundation funds, various bank-specific functions are implemented in decentralized ways. To maintain stability, ABLE calculate the appropriate exchange rate of ABLE Coin and ABLE Dollar, and determine the incentive structure for ABLE Power conversion to increase the long-term value of ABLE Coin. This ABLE Eco structure provides secure financial products to users.
The union of stable currency functions and finance of cryptocurrency opens a new era for the blockchain bank system. Cryptocurrency and the token economy creates a new business model by eliminating existing intermediaries, and directly connect providers and consumers, which is the basic goal of blockchain technology. The combination of stability-based banking system and decentralization will create a structure where more value is guaranteed to participants.