Stable Cryptocurrency Coinage

• Main Authors: Snow, Paul, Deery, Brian, Gillas, Gavin
• Format: Patent
• Language: English
• Published: 06.02.2020
• Subjects: CALCULATING; COMPUTING; COUNTING; DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES; PHYSICS; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR

A two-coin mechanism for maintaining a stable value of cryptographic coinage traded in a decentralized market exchange without requiring a reserve. A pegged cryptographic token and a variable-priced cryptographic token are both traded in the reserveless decentralized market exchange. The pegged cryptographic token and the variable-priced cryptographic token are value related based on a cryptographic exchange rate. Whenever a market transaction is processed (such as a buy or sell order), at least one of a destruction operation and a creation operation are performed. The destruction operation destroys at least one of the pegged cryptographic token and/or the variable-priced cryptographic token, while the creation operation creates new ones of the pegged cryptographic token and/or the variable-priced cryptographic token. The two-coin mechanism thus implements a decentralized and algorithmic monetary policy that removes and/or deposits cryptographic tokens to/from the reserveless decentralized market exchange to alter supply and to maintain stable coinage values.