Blockchain technology and the decentralised finance sector have made big strides, over the last years, especially during the global pandemic. With the continuous developments of blockchain technology and cryptocurrencies, we have seen a lot of sub-categories have their time in the limelight within the crypto world. These sub-categories include; NFTs, Meme coins, and Play-to-Earn tokens.
Why is Decentralisation an Interesting Concept
By cutting out the middleman and reclaiming financial power from centralised institutions and governmental bodies, decentralisation opens up the financial system to everyone with an Internet connection. In DeFi, decentralised applications (DApps) or blockchain-based protocols regulate conventional financial activities such as asset exchanges, staking, stablecoin issuance, lending/borrowing, trading, peer-to-peer payments, and wealth management.
What is a Decentralised Reserve Currency?
Essentially backed by a reserve, a currency is referred to as a reserve currency. In essence, this is exactly like how Central Banks manage the currencies under their authority using reserve assets. In contrast to banks, a decentralised reserve currency, or DRC, administers its currency using bitcoin reserve assets kept up by the DRC Protocol. Simply put, this assures token holders that the price of the issued token is backed by a reserve and won’t drop below a certain floor value.
Prior to the middle of the 20th century, gold and silver were the most widely used reserves. Strong foreign currencies make up the bulk of today’s reserves. Several of them have been designated as reserve currencies by the International Monetary Fund (IMF). The use of foreign assets, deposits, and loans as reserve currencies are possible. The United States dollar was declared as the global reserve currency in the middle of the 20th century.
What is Adirize DAO
The United States dollar was pegged as a stablecoin and has grown within the crypto community since they are less volatile than tokens like Bitcoin, Ethereum, and other Altcoins. Users feel secure when transacting with stablecoins since they know their purchasing power will remain constant over time. This is a fallacy, though. Since the Federal Reserve and the US government control the currency, these stablecoins will also lose value if the US dollar does.
Unlike USDT or USDC, Adirize Token is not a semi-centralized stablecoin. Instead, Adirize intends to be a decentralised algorithmic reserve currency. Due to the fractional reserves from which it draws its inherent value, Adirize provides its customers with free-floating value that they can always rely on.
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Adirize DAO (ADI)
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