In Ratio we trust — the basis of stability for crypto-currency
If you have not read the basic concept the ‘RAR Tokens theory of stability for crypto-currency (The basic)’, please follow the link (The Basic)
RAR tokens theory of stability for crypto-currency is based on a trust in the form of value ratio.
The value ratio is always constant; this would be the basis of trust between tokens or coins. Violating this trust will destroy their integrity and eventually will lose their intrinsic values.
On the other hand, price ratio is relative, but proportional to the value ratio. (for very a simple example, if the value ratio between two tokens/coins is 1:2, the possible price ratio would be 1:2, 2:4, 3,6 and so on… or even in fractional number) .
Now, if the market is bullish on these tokens/coins, price ratio would increase in a fashion that is proportional to the value ratio. Any movement of price ratio that does not conform (like 2:5 or 3:8) to the value ratio is an anomaly and trust is violated.
On RAR tokens theory of stability, it does not have knowledge about the market; whether the market is bullish or bearish, it does not have an awareness of any other coins, tokens or fiat. What it has is a self-determination if the price is violating the value ratio or not.
The tokens/coins, on the RAR tokens theory of stability, are not competing with each other but rather colluding in a consensus manner. Somehow similar in a blockchain, all tokens/coins have to be in agreement with their prices based on their value ratio.
In this manner, the tokens/coins will have a degree of control from within as if they have intelligence that can determine what price is acceptable and not.
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