What DASH needs to set it above all other cryptos

@EUsouth, thanks for that link. It was really interesting. I'm pleased to see that others are thinking along the same lines.

After reading this I've thought of a refinement to my original suggestion and to propose that we consider a set of 3 DASH stable coins, not just one. They would in effect be the same coin however the options as to which we peg it to are configurable by the users.

These DASH stable coins would be as follows:

1. Dash Stable Basket of 80,000 goods
2. Dash Stable USD
3. Dash Stable Euro

The reason I would suggest these 3 dash stable coin options is because they address different markets. The two main currency markets and the basket of goods stable coin.

If there is someone that is trading in USD they would want their DASH stable to be in USD and the same with merchants trading in Euro.

The first option however would be applicable to long term savers e.g. Pensions and Pension funds. These could be locked in and guaranteed to be able to purchase the same amount of good in 50 years as today.


I have undertaken some research on the factors involved with retaining or losing value of a currency.

The "purchasing power" of a currency is measured against a fixed basket of goods that are commonly used by people during normal cost of living conditions.
There are around 80,000 goods used in the cost of living calculation: https://www.thebalance.com/cost-of-living-define-calculate-compare-rank-3305737

The decrease in purchasing power of the USD is most effected by the inflation rate.

According to the marketwatch website: https://www.marketwatch.com/story/how-fast-is-your-dollar-deflating-2015-05-12 their calculations show how the dollar decreases in value in the following predictable way:

Inflation rate:
2 % inflation dollar is worth half its value in 36 years.
4 % inflation rate dollar is worth half its value in just 18 years
6 % inflation rate dollar is worth half its value in 12 years.

A truly stable currency should have the same purchasing power no matter how many years has passed by that is why I suggested one of the options needs to be against a basket of goods. If we could create such a stable coin then it would be preferably over USD and Euro for holding long term savings - such as for a pension, or for a saver's nest egg. However this stable coin may not be suitable for day to day trading in USD and Euro and for that reason I suggest we also create the options for the user to lock in which currency they want to be stable relative to.

The way I envisage this working is that the user would choose an option in the DASH wallet to lock their DASH to a stable coin. Then to select which asset class they want it locked to. The user can at any time revert all or part of their DASH stable coin back to Dash transactional to undertake transactions. This is where the value of DASH transactional really comes into its own place and why it is so important to have a separate transactional coin that is NOT pegged to any asset because then it becomes totally compatible with any POS system, or exchange anywhere in the world that we have already integrated to. There is no need to convert between different asset classes at the level of the transaction only at the end points. The end points being at the users wallet and only if the user chooses to make the change.

I feel this would give DASH an unprecedented leap forward in a truly world class currency that offers greater security and flexibility than any currency, including gold, silver, USD and Euro. It is this type of quantum leap in improvements to the users that will spark merchants and users to move to using DASH instead of the non flexible, antiquated fiat system which is geared towards reduction in value with time and in effect the stealthy theft of our hard earned money. I call it theft because that is really what it is. Why should our earnings decrease in value? There is absolutely no reason why that should happen, except of course that it is beneficial for governments to do that so that their debt is decreased as the value of that currency decreases. So, in effect, inflation is a type of stealth tax. If the average person sees they have the same amount of money in their bank account they will not be concerned. However if someone was to access their account every 12 to 36 years (depending on the inflation rate) and take out half of their money there would be riots in the streets. But that is exactly what is happening right now, and only the people that take the time to learn about this actually know what our governments are doing to our savings and wealth.

In the link you mentioned it talked about Factum creating a stable coin, but OmiseGO is also now integrating a stable coin - maker DAO See these articles.

https://medium.com/makerdao/makerdao-and-omisego-announcing-dai-and-omg-collaborations-23600a080046

https://www.newsbtc.com/2018/04/11/...orating-for-a-decentralized-financial-future/
 
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@EUsouth very interesting indeed the conversion of DASH transactional to a stable coin could have a fee associated with it that could be used to fund the network, especially as each year that goes by the amount of reward payments payable to the network MNO and Miners decreases. We need to find alternative funding proposition and a small % fee for locking into a DASH stable coin could provide exactly the funds we need. In fact it would be likely to form the basis of the primary source of funding because I can see most merchants opting for the feature to lock in their funds. This is another reason in my opinion to keep the DASH stable coins within DASH. In this way the DASH network can gain from the conversion fees from DASH transactional to DASH stable.
 
As far as the exact mechanism Alt36 uses, I don't know, they could integrate any of a number of Dash to fiat services like Uphold, I think Spark does something similar, Anypay, afaik though, Alt36 is the only POS + POP (Point of Purchase via ATMs) where users can buy Dash at the merchant locations.
 
What if?

At the protocol level, all future Treasury spending went into a stable coin coded into the protocol, other users could buy in if they wanted to with mining or MN rewards, but there was an automatic payment guranteed into the stable coin, I could see that implemented into the protocol level more easily as it would largely be segregated, this would guarantee proposal owners the fiat amount they expect to continue operations and they could choose to move in or out of it to pay employees in Dash in some cases, those not in the pool would have the choice of buying in, which would in effect buoy Dash price, this seems like something that might, just might be doable at a protocol level while solving an issue that proposal owners face?
 
This ^^^ could create an organic means of creating a stable coin supply that I believe has not been tried yet.
 
Mechanism, and just pulling example numbers out of my ass, Dash$ would be created out of Dash at superblock at some market reference price, allowed to vary, let's say +/- 10% supply at each release to supply, with a buyer/seller market coded into core protocol, this would guarantee a stable inflation rate for the supply with a floating peg. This is just an idea. @)~ A starting supply could be created out of an internal Dash to Dash$ buy at reference market rate? For a period of (?)X treasury cycles while the stable coin is coded into the core protocol with an upper limit on pre-sale? In fact, Dash$ MNs could be coded into the protocol at a fixed $100,000 each which would set a $100 reference rate for Dash. Dash could attempt to peg to $100. Thinking out loud here.
 
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If this $100 peg for Dash worked, Dash could in theory INCREASE its emission rate with a spork, with rewards to MNs and miners adjusted upwards. Or downwards in the case of a dropping peg.
 
AgnewPickens said:
At the protocol level, all future Treasury spending went into a stable coin coded into the protocol, other users could buy in if they wanted to with mining or MN rewards, but there was an automatic payment guranteed into the stable coin, I could see that implemented into the protocol level more easily as it would largely be segregated, this would guarantee proposal owners the fiat amount they expect to continue operations
Click to expand...

A very interesting and creative concept. That would solve many problems that proposal owners are having. I think you could have come up with something here that is truly ground breaking.
 
EUsouth said:
A stable coin would PRECISELY fix in a move the two biggest problems that Dash may have experienced in 2018: The loss of funds to finance the sector's overall dump + the precise reference for global users and traders to do business without volatility (and without complicated proposals of changes to fiat "as fast as possible" and similar patches, which would never fix 100% the problem).
Click to expand...

Do you know what other benefit it would have that I think nobody else has yet thought about? If the rewards were paid out into the stable coin it would massively improve the ability for MN to pay their taxes on rewards without any complications. The problem at the moment is that calculating all the actual amount for tax purposes is a complete nightmare especially for countries that take the value of coin at issue as the tax point. Other countries take the value on the 31/12/ and in situations like the end of 2017 when the price ballooned and then crashed many people got caught out and could have been liable for higher taxes base on the price of DASH on 31/12/2017 . If however all rewards are paid into a stable coin or at least a option to do so then taxes suddenly become easy to manage.

From country to country the criteria for paying taxes vary. Some take the value of the coin at the end of the year, other take the value of the coin when it is issued. If all coin rewards are issued as stable coins then we have no more problems with tax calculations. For the MNO that want to take a risk they can always convert to DASH transactional if they wish but I think the sensible thing would be to leave it as DASH stable until the tax is paid.

We need a stable coin DASH core group. Evan, if you are reading this can you comment. I think this is what we are missing. We need a stable coin for DASH to go mainstream.
 
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Stability in DASH is essential for commerce. If we could combine stability with simplicity of use e.g. with NFC passive payment card, DASH would become an unstoppable solution for payments in Latin America.

Stability brings other benefits too. If we develop a DASH stable coin to work with our current Dash Transnational coin then there would be no reason for merchants to have to cash out to fiat currency in Venezuela. A stable coin also means we can use an NFC Passive Card for making payments without any internet or phone. An NFC passive payment card - let's call it a "DASH Card" or "DASH Blue" would also mean that people do not even need a phone of any type and they don't even need an internet connection because the coin is stable there is no need to look up its value in real time.

The DASH CARD would be charged up with DASH Stable coin at home with just enough money to be used in the day. The user would keep the majority of the DASH on either a hard wallet in a secure place or on their phone. This makes it possible for crypto to be used anywhere by anyone. I wrote an article on why a DASH Card might be more useful for mass adoption than Evolution which you could read here:

DASH Card: (Passive NFC payment card)
https://www.dash.org/forum/threads/...evolution-for-granny-and-mass-adoption.42644/


A Dash stable coin with a DASH Card therefore gives these benefits:
1. No internet required
2. No training required
3. Merchants would readily use DASH because it could be automatically locked into the DASH Stable twin coin. This circumvents the need to convert DASH to fiat currency. As long as the purchasing power remains why convert to fiat if merchants in Venezuela accept DASH?
4. Increased security for people in Venezuela because the can charge their DASH card up with only enough money they intend to use that day.
5. The price of Dash transaction coin (our current coin) is likely to dramatically increase because DASH becomes considerably more usable alternative to fiat currency and therefore more merchants would want to use DASH.
6. Almost no training is required with a DASH card which opens the door for granny to use it.

Other crypo projects are waking up to the importance of having stability and developing their own stable coin - e.g. is Binance which is now in the process of developing a stable coin.

https://www.coindesk.com/crypto-exchange-binance-announces-new-stablecoin-initiative

Combining a DASH stable coin with NFC passive payment card eliminates most of the barriers DASH has faced to getting wider adoption.

Evolution is going to be amazing, However we also need to consider is this the very highest priority for us to deliver this now? Could it be that a DASH stable coin linked to a DASH card would give us more practical use now in countries like Venezuela leading to rapid and wide-spread adoption of DASH. As far as I am aware the first release of Evolution does not solve the stability issue. Perhaps stability and integration into a DASH Card might be useful to integrate to the second stage of evolution or we could develop these as a separate project.
 
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