AlloyCoin is designed to solve the problem of price volatility. No one doubts that for something that’s supposed to function as a currency, crypto-currencies are way too volatile. Current cryptocurrencies are better at being subjected to units of value than they are at being them. Flash market crashes, extreme inflation and deflation, and acute daily price swings (30% or more), are normal occurrences in cryptocurrency markets.
The Asset Backed Cryptocurrency
AlloyCoin’s blockchain is designed to work alongside a pool of collectively owned assets called Alloy Reserve. As these assets grow over time, they give AlloyCoin two distinct features: a price floor and crypto-dividends. Being an asset backed cryptocurrency makes AlloyCoin valuable by design, not only by demand.
To create an asset backed cryptocurrency, we divide the total value of Alloy Reserve by the number of circulating AlloyCoins to calculate a price floor. This is the minimum value for each AlloyCoin. A price floor makes AlloyCoin a better option for business owners and risk adverse investors who need a store of value.
As the network’s collectively owned assets earn interest, that growth is shared by all coin holders on the network. Each wallet passively collects a portion of Alloy Reserve’s growth in the form of new AlloyCoins. Cryptocurrency dividends make AlloyCoin a better option for the smart cryptocurrency investors.