Imagine a tiny new country that had a usd dollar

Question

Imagine a tiny new country that had a usd dollar

pegged currency called frollars. Every dollar issued is used to buy US treasuries. Also you can buy treasuries from this country, which are also used to buy us treasuries. Except this countries treasuries pay higher than US treasuries because they are boosted by additional treasury holdings. While not spending any money, this country collects minimal taxes on all economic activity which are instantly burned, reducing the overall supply of frollars compared to backing. Meanwhile a portion of the taxes and treasury yield go to all citizens in proportion to their past economic participation.

Now imagine this country exists online, and rather than accumulating crappy US treasuries, it accumulates staked ethereum, an internet bond with nice yield and an ever decreasing deterministic supply that no one can fuck up. What would we call this magical place? Fraxtal.

#cryptocurrency #english #frax

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13.03.2024