Elastic coins. What is seigniorage?
A seigniorage token's coin market supply expands with volatility of the market, and contracts with the users action of buying coupons. We see coins like AMPL have implemented a strategy similar to this the only difference being that a Seigniorage coin does not contract the supply in your wallet without your activity to do so. Both of these types of coins have a certain set value which the contract automatically adjusts to in order to achieve that value.
With a coin like Ampleforth you may see 10,000 coins in your wallet today and see 8000 in your coins in your wallet tomorrow based on the market cap value. With a seigniorage you would always see at least the same value in your wallet every single day 10000 today would still be 10000 tomorrow regardless of the market cap.
A lot of people like seigniorage tokens over rebase tokens for the simple reason that you are more in control of your finances with a seigniorage than you would be with a simple rebase token. Who doesn't want more control?
If you've been stuck in rebase tokens and are looking for more intriguing ways to micro manage your finances check out the seigniorage tokens. Currently my favorite pick is True Seigniorage Dollar:
- Faster Epochs
- Still early (13m MC)
- Exclusive zap feature to instantly load LP from any of the other seigniorage tokens
- Beasty APY's
Homepage:
Telegram:
https://t.me/TrueSeigniorageDollar
