The Actual Economics of the UST Stablecoin Disclaimer #1: This is not financial advice. Although if you’re the kind of person who takes financial advice from a random person on the internet, you’re probably not the type to read disclaimers. Disclaimer #2: I am not a neutral source of information…

On a Friday evening I had an interesting Twitter encounter which forced me to think more critically about the purpose of DAOs. “Decentralized Autonomous Organizations” have been around since 2016, when Stephan Tual first mesmerized us with a grand vision and a fashionable scarf. Yet over the past five years…

The following content is reproduced from EtherIndex’s public comment letter to the CFTC. This comment was filed in regards to this Request for Information and can be found in its original submission here. Understanding Ether — The World’s First Digital Commodity A Brief Background: EtherIndex registered its S-1 with the…

Okay, I lied, this one’s for smart people… For the uninitiated, MakerDAO is the organization behind the Dai stablecoin and its accompanying decentralized credit system. In my last post, Maker for Dummies, I explained the basic principles of this system in broad strokes. If you’re unfamiliar with Maker, I recommend…

Summary: 1 Dai = $1 Maker keeps Dai at $1 using a system of collateral and price feeds. This collateral is carefully managed by the MKR token holders. MKR holders act as a buyer of last resort. Smart Contracts are blockchain magic. Global settlement provides a final layer of safety. …

Value is an esoteric concept. When it comes to valuing networks it can become especially convoluted due to its traditionally theoretical nature. Yet blockchains must maintain a sufficient market capitalization to secure the value held within their respective networks. This is easy enough to take for granted when prices are…