The more I read about “digital forms of money” the more they feel like cheats really taking shape.
My most recent update is this nitty gritty report by Fortune’s Team Ledger around a speculation by the funding firm Andreessen Horowitz in something many refer to as a “stablecoin.” I contemplated this article precisely, and for the life of me I can’t make sense of what this stuff is about. I’m genuinely sure I’m only a fuddy-duddy and will be demonstrated off-base.
Nevertheless, here’s the key piece about the “Producer Coin,” or “MKR,” being referred to that is made me scratch my head:
The general purpose of MakerDAO is to make a framework that balances out the cost of another cryptographic money it mints: Dai, a computerized token by and by pegged to the estimation of a U.S. dollar. The framework keeps up this value peg by requiring Dai-searchers to set up Ether as security. At the end of the day, individuals send Ether into an escrow-like monetary contract coded on the Ethereum blockchain and, consequently, they get some Dai. MKR coin holders, thusly, get the opportunity to set this “collateralization proportion” (and also pull some other budgetary levers).
This game plan shouts out “Ponzi plot” to my misguided cerebrum. That or the scandalous “round-stumbling” bargains done by foul AOL administrators once upon a time.
The other intriguing part of this venture is that Andreessen Horowitz is veering far from funding putting and into forefront securities hypothesis. As indicated by Robert Hackett’s great profile of Kathryn Haun, the company’s new accomplice, Andreessen Horowitz’s sanction for its “crypto” support takes into account such speculations.
It’s another day and another ballgame.