Deflation mechanism of digital currency

1.

At present, whether a digital currency is a valuable currency basically belongs to the "angel wheel" stage. There are three criteria to determine whether a digital currency is a valuable currency: one is the team, the other is the economic model, and the third is the instry demand

The randomness of the

team is too great, so we will not discuss it here. This paper first makes a detailed analysis of the economic model of digital currency. In the following article, the author will analyze some digital currencies according to different instries

Strictly speaking, the economic model involved in this paper is not completely equivalent to the concept described in economics. Especially in digital currency, currency consensus mechanism and incentive mechanism

Consensus mechanism is the strategy and method for each node in the blockchain system to reach an agreement, which should be selected flexibly according to the different types of system and application scenarios

common consensus mechanisms include pow, POS, dpos, pbft (and its variants), etc. In addition, based on the different application scenarios of blockchain technology and the characteristics of various consensus mechanisms, this paper evaluates the technical level of various consensus mechanisms according to the following dimensions:

A) compliance supervision: whether super permission nodes are supported to supervise the nodes and data of the whole network

b) performance efficiency: the efficiency of reaching a consensus and being confirmed

Resource consumption: CPU, network input and output, storage and other computer resources consumed in the process of consensus

d) fault tolerance: the ability to prevent attacks and fraud

1 instry background

looking for Instry pain points: asset management needs professional team and knowledge, but now most digital currency investors do not have it; The fluctuation of digital money market is huge, and investors can't keep the value of assets in the falling market

2 own advantages

in the stock and futures markets for many years, has a mature and high-quality asset management team; AI big data team has strong technical strength

3 Market Research

after market research, it is estimated that the market value of asset management will be about US $1 billion in the next five years

4 total amount of digital currency

after considering the expected asset management market value, development cycle and difficulty, we will consider issuing 2 billion pieces of XT based on Ethereum erc20 digital currency, and never issue additional ones

5 allocation method

early stage investors hold 10%, teams hold 20%, business operation 10%, community construction 10%, and investors hold 50%

6 digital currency release / repo mechanism

the release mechanism can be divided into three categories:

the first category: the money holding part of business operation is fully unlocked, and the purpose is limited to business and operation activities

the second type: the release mechanism of community construction is that community members release exclusive information, cooperation platform release exclusive project progress and so on. According to the number of participating IDS, the corresponding proportion of XT is released (publishers and participants get 50% each) until all the releases are completed (after the release, the follow-up reward comes from the platform profit pool)

the third category: investors hold the mainstream digital currency, conct asset management in the platform, release a certain amount of XT according to the exchange ratio, and the early investors and the team hold part of it synchronously and unlock it according to the proportion

the repo mechanism is: 50% of the profit (in XT) will be returned to the holder; The rest goes into the platform profit pool, and 50% of XT in the profit pool is destroyed monthly until the total number of XT is 1 billion; The rest will be used as platform ecological construction fund

7 digital currency equity

profit sharing: holding XT is for platform users, and they can enjoy 50% of platform profits

platform Governance: participating in platform activities, enjoying XT awards and airdrop activities of other project parties

function customization: Based on platform AI big data, investors can purchase services optimized for indivial trading strategies

2. Inflation is the price rise that causes the devaluation of a country's currency. The essential difference between inflation and general price rise: general price rise refers to the temporary, partial and reversible price rise of a certain commodity e to the imbalance of supply and demand, which will not cause currency devaluation; Inflation is a sustained, universal and irreversible rise in the prices of major domestic commodities that can cause the devaluation of a country's currency. The direct cause of inflation is that the amount of money in circulation in a country is greater than its effective economic aggregate
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.

3. Digital currency is the proct of currency development to a certain stage. The issuance of digital currency is mainly to make transportation more convenient and also concive to the supervision of the economy.

4. Huang Mitong said that Yesi is that if there is less money in circulation in the market, his price will rise, because it is the principle of economics that the rare is the most expensive.

5.

Recently, the price of global crypto digital currency is quite unstable. bitcoin has fallen below US $7000 from its peak of US $20000 at the end of last year, and soared by more than 11% in one day. There are huge fluctuations in the market, and there are many differences in the attitudes of countries towards digital currency. Some announced that they would issue the world's first sovereign legal digital currency, showing a "strong support" attitude, and more countries carefully observed and focused on research and guidance

the existing monetary and financial system is not a natural evolution, but an inevitable result of legal restrictions or government regulation. Although cryptocurrency has many defects, it is also a valuable experiment, especially in the exploration of super sovereign currency. Different from precious metal currency and credit currency, they are oriented to the exploration of "transaction benchmark consensus" in the data age. Of course, if it is affected by too much price fluctuation, speculation, deflation restrictions, etc., and the payment function of crypto digital currency can not be truly implemented, it can only be further and further away from the "currency experiment", or become a special basic "digital asset", or a flash in the pan in the long history

still want to cancel virtual currency< br />

6. I'm particularly optimistic about okb on the okex bitcoin exchange. This year, the destruction of 70% of the quantity may bring about a 70% increase in the price. The market performance is also more in line with the model results. On February 10, okex announced the destruction of 70% of okb, as well as the launch of okchain online and the start of internal test of okdex. Okb rose 36% on the same day to US $5.37, and rose to the highest US $7.51 in the following days, Up 90%.

7.

Deflation is deflation, which means that the purchasing power of consumers increases, but if it continues, it will lead to the aggravation of debt burden, the decline of investment income of enterprises, the negative consumption of consumers, and the severe situation that the national economy may fall into a vicious circle with the interaction of price decline and economic recession

In the study of economics, Marx put forward the problem of deflation earlier. In his theory of capital deflation and deflation, he repeatedly analyzed the inflation and contraction of money in circulation. It is considered that inflation and deflation may be caused by the instrial cycle of economy, by the changes in the quantity and price of commodities in circulation, by the changes in the speed of currency circulation, and also by technical factors

After Marx, Keynes discussed the problem of deflation in connection with monetary policy. In his masterpiece employment, interest and currency, Keynes used more terms such as underemployment and insufficient effective demand to analyze the phenomenon of deflation. Through the penetrating analysis of the great crisis in the 1930s, he put forward the conclusion of "insufficient effective demand", and believed that insufficient effective demand was the fundamental cause of deflation

If a country adopts a tightening monetary and fiscal policy to rece money supply, public expenditure and transfer payment, it will lead to the imbalance between the commodity market and the currency market, resulting in "too much goods pursuing too little money", This will lead to policy deflation

When the economy reaches the peak stage of prosperity, there will be a large amount of excess proction capacity, oversupply of goods, continuous decline of prices and periodic deflation

When people expect the real interest rate to further decline and the economic situation to continue to be poor, the demand for investment and consumption will decrease, while the rection of aggregate demand will make prices fall, forming a demand driven deflation

The adoption of new technology and the improvement of labor proctivity will greatly improve labor proctivity and rece proction costs e to the technological progress and the wide application of new technology in proction, which will lead to the decline of commodity prices and the deflation of cost depression

System and institutional factors system changes (enterprise system, security system, etc.) will generally disrupt people's stable expectations. If people expect that their income will decrease and their expenditure will increase in the future, then people will "spend less and save more", resulting in insufficient effective demand and falling prices, resulting in system changing deflation

If a country adopts the linked exchange rate system of pegging to a strong currency and its currency is overvalued, it will lead to a decline in exports, a surplus of domestic goods, difficulties in business operation and a decrease in social demand, and then prices will continue to fall, resulting in external shock deflation

8. Vpow is a way of proof of work. In other words, how much money you get depends on the effective work you contribute to mining. In other words, the better your computer performance is, the more money you will be allocated. This is to allocate money according to your proof of work (the higher the computing power and the longer the mining time are, the more money you will get).