Trilemma for any currency is it can't have
a) stable exchange rate,
b) free capital flow &
c) independent monetary policy, at same time.
Most fiats choose c, prefer a & sometimes sacrifice b.
Most cryptos choose c, prefer b & completely ignore a.
a) stable exchange rate,
b) free capital flow &
c) independent monetary policy, at same time.
Most fiats choose c, prefer a & sometimes sacrifice b.
Most cryptos choose c, prefer b & completely ignore a.
A token that pays attention to a would have an attractive value prop given extreme volatility of every other token.
It'd help attract long-term investors rather than speculators that count on exchange rate appreciation forever.
It'd help attract long-term investors rather than speculators that count on exchange rate appreciation forever.
It's surprising that no L1 or L2 token pay any mind to stable exchange rate in tokeneconomics.
It's def not for lack of tools. They have mint/burn policy. Also capital control, i.e. sacrifice b), is not taboo (e.g. staking unlocking period is a form of capital control.)
It's def not for lack of tools. They have mint/burn policy. Also capital control, i.e. sacrifice b), is not taboo (e.g. staking unlocking period is a form of capital control.)
A token with a) will help it to be adopted as an actual currency. Why no platform token is considering that as a competitive edge in the L1/L2 war I don't understand.
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