Laguna Labs has launched a testnet for the Nuon flatcoin under development, with the token’s value reflecting the cost of living.
In a statement, Laguna Labs said that unlike traditional stablecoins, the price of flatcoins is pegged to the cost of living. In Nuon’s case, the indicator is “calculated daily on the basis of objective and reliable inflation data.”
The idea of such a “flatcoin” was gleaned from discussions on the social network Twitter, which included such large industry participants as Coinbase CEO Brian Armstrong, Ethereum co-founder Vitalik Buterin and others.
During these discussions, the idea was expressed that the token needs to be pegged in an alternative way so that it retains its purchasing power over time. So far, there are not many details about the functionality of the test network for the Nuon token, but developers can already try to issue “flatcoins”.
Although the concept of an inflation-pegged token is not new, there have been virtually no real tests of such an asset so far. In April, Frax Finance launched the Frax Price Index stablecoin, which is pegged to the consumer price index. The Volt Protocol project also has a similar token.
Earlier, Chainalysis reported that the use of dollar-pegged stablecoins is growing in Latin America, especially in countries with high inflation and devaluation.
Source: Bits
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