Design of purchasing power stabilization mechanism of Hacash
After 15 years of development, Bitcoin is still the largest market value in the industry. Ethereum and other decentralized application platforms have not been able to catch up, which shows its revolutionary significance. On this dimension, Bitcoin is unquestionably successful. But from another point of view, Bitcoin has failed in that its original vision of a currency has not been fulfilled, people have not used it in daily payments, and the "dollar alternatives" that anchor fiat currencies, such as USDT, now seem to have taken over as the settlement currency of the crypto industry, a position that should belong to Bitcoin.
Bitcoin seems to be moving away from the peer-to-peer digital currency it was created for, becoming a crypto-asset, the putative digital gold of the age.
This is directly related to another key, less widely known problem that Bitcoin fails to solve: how to maintain the purchasing power of money on a decentralized basis. Nakamoto did not take this into account when designing, and the money supply was directly fixed to a finite amount and output was halved over four years. This has made the price of Bitcoin so volatile that we have had to fall back on centrally managed stablecoins such as USDT for payment and settlement.
The whole crypto world can't be settled on a standin for the dollar for a long time, which is very much against our vision, but now it seems that bitcoin can't support that ideal of a world currency either. Although few people have noticed the defects of Bitcoin's lack of money supply adjustment, forecasters such as Bitcoin OG and economist Lawrence have gradually emerged to point out that the purchasing power stability of gold is better than Bitcoin. Recently, Brian, CEO of Coinbase, a cryptocurrency exchange that started with bitcoin trading, also pointed out that many people are not willing to use BTC as a real currency and proposed Flatcoin.
HAC is a completely decentralized purchasing power stable monetary system that inherits the advantages of Bitcoin and conforms to the purchasing power adjustment mechanism of gold.
The entire monetary system consists of three currencies with different attributes based on the PoW mechanism, namely HAC, HACD and BTC.
BTC can be transferred to Hacash in one direction. After the transfer, the ownership is unchanged, the monetary attribute is unchanged, and the original value of BTC is maintained. The total amount is still 21 million, and it is circulated in Hacash with the minimum unit SAT. Additional HAC will be issued after the one-way transfer of BTC, and the amount of additional HAC will be from more to less, and after the one-way transfer of 1.05 million BTC, only 1 additional HAC will be issued for each BTC transfer.
From the macro perspective, the supply can be adjusted and the purchasing power can be stabilized by the one-way transfer of BTC and the reduction of circulation by bidding HACD. Therefore, HAC will be superior to BTC in payment and settlement, avoiding the central stable-coin scheme linked to legal currency, and realizing large-scale settlement of encryption native.
From the micro perspective, HAC can also adjust the quantity through the on-chain mortgage lending of HACD and BTC, HACD and BTC can increase the supply by lending HAC as collateral, and reduce the supply by redemption of HAC and destruction of HAC interest generated by HACD and BTC.
The whole process of HAC purchasing power adjustment is just like the purchasing power adjustment mechanism of gold, and the response speed is faster than that of gold in theory. The increase in the price of HAC will stimulate the unidirectional transfer of BTC to increase HAC, as well as the additional issuance of HACD and BTC mortgage loans to increase circulation. The reduced HAC price will be used to destroy HACD by bidding, and redeem HACD and BTC to destroy HAC to reduce circulation.