Element Zero Network’s Stance To Protect The Crypto Community Against Market Volatility And Long-term Inflation.
Price volatility is one of the most significant obstacles in the adoption of cryptocurrencies.
Stablecoins are a reaction to the fluctuations and volatility we see in cryptocurrencies with the benefits of cryptocurrency and blockchain. Successful creation of an ideal stablecoin could create fundamental long-term improvements to the world we live in today and that is what has fueled Element Zero, who are enabling businesses, organizations and even governments to create their own stable coin, free of charge, based on a new stability methodology that completely eliminates the possibility for any volatility in the first place. Element Zero is a not-for-profit, next-generation payment network based on an algorithmic stablecoin creation platform.
Embracing blockchain as a driving force in social change.
Element Zero is designed with the goal of making the world better for all, by providing a new method of payment that is guarded against long-term inflation and stops volatility in its tracks. To ensure that Element Zero stablecoins maintain their value and to protect holders, Element Zero tokens will increase in value to protect against inflation. The majority of stablecoins (85%) are structured as centralized for-profit entities, with only 15% working on not-for-profit structures. As a not-for-profit, Element Zero will assign 100% of the revenue in the company’s reserve to support the liquidity of the stablecoin. This means that if the ratio between the reserve and Exposure At Default (EAD) flips, a favourable scenario will be created whereby there are more funds than obligations, in turn, generating a net profit. When this happens, Element Zero will allocate 100% of the net profits to non-profits organizations.
A model that stands against hyper-inflation
Element Zero’s protocol is designed to heighten the value of its stablecoins in a way that will balance its purchasing power by overcoming inflation. This is accomplished by applying the Personal Consumption Expenditures (PCE) and the Consumer Price Index (CPI) average inflation per year over the last 100 years (determined by which is higher. This design is what will stop scenarios of volatile hyper-inflation which is destroying countries like Venezuela.
Toward a secure future for tokenized goods and services that benefits all.
To ensure the future of Element Zero and keep it from any form of manipulation, such as greedy third-parties, or even governments, Element Zero was incorporated as non-stock membership. This means it will not distribute any profits to shareholders (there are none) and keep 100% of the revenue in the organization’s reserve to support the liquidity of all Element Zero stablecoins. The control over Element Zero will be shared with all stablecoin users in such a way that every essential decision will require agreement by consensus. Element Zero is launching the EZO coin, the Element Zero branded stablecoin but since Element Zero is a turn-key stablecoin platform, it’s true strength is determined by the partner organizations; be they companies, providers or even governments, as they leverage the Element Zero Network supported by the stability and liquidity protocols to create and launch their own stablecoins using a different name, symbol and their own custom features.
Conclusion
By adopting evolutionary systems that combat the major obstacles facing blockchain, we aid the mass-adoption and use of the decentralized services. Maintaining purchasing power is equally important to businesses and individual users. This will change the fabric of services as more of their transactions are tokenized. Element Zero (regardless of the currency type) supports stability, this is crucial to protect buyers and sellers from loss of value, either during a transaction or a lifetime of investments on tokenized goods.
