November 20, 2024 ☼ Crypto ☼ Payments
DebtCoin is a stablecoin I propose that is pegged to the U.S. national debt, serving as a transparent crypto token that tracks arguably the world’s most significant economic metric. It combines the stability of traditional stablecoins with a critique of U.S. fiscal policy.
Stablecoins traditionally peg to assets like fiat currencies or cryptocurrencies. Algorithmic stablecoins often fail under market stress, while crypto-backed tokens are volatile. Fiat-backed stablecoins depend on centralized systems, contradicting crypto’s decentralized ethos.
DebtCoin provides a different approach. By linking its value to the U.S. national debt, it ensures stability, aligns with crypto’s transparency principles, and highlights the growing government debt.
DebtCoin offers:
Price Mechanism DebtCoin’s value is calculated as:
DebtCoin Price (USD) = Current U.S. National Debt / 10,000,000,000,000
So at $35.92 trillion in national debt, each token would be worth $3.59.
Oracle Infrastructure A multi-oracle system provides reliable price data, using sources like U.S. Treasury Direct and Federal Reserve Economic Data. Median-based calculations detect and exclude anomalies.
Reserve System DebtCoin ensures security and transparency with:
Tokens are minted upon deposit and burned upon withdrawal, maintaining supply control.
DebtCoin combines strong security, reliable price feeds, and practical use. It critiques fiscal policy while offering features for yield farming, lending, and liquidity. DebtCoin aims to redefine stablecoins, blending functionality and transparency in an innovative way.
This is the first article in a 3-part series on DebtCoin:
DebtCoin: A Stablecoin Pegged to the United States National Debt (current)
DebtCoin: Reserve Management
DebtCoin: Governance Framework