System and method of distributed, self-regulating, asset-tracking cryptocurrencies
The system and method disclosed herein includes a family of distributed, self-regulating, asset-tracking cryptocurrencies using blockchain technology. One embodiment, such as a computer-implemented method, may include maintaining a stable value of an asset token relative to a value of an underlying target asset. Further, the computer-implemented method may include minting the asset token in variable quantities, applying stability fees or rewards in variable quantities, and obtaining market feedback to determine the variable quantities of fees to apply, rewards to issue, and asset tokens to mint. Market feedback may include a market price of the asset token and other data obtained from exchanges and oracles. Oracles may be used in certain embodiments to report prices and support smart contracts that aid in regulating price stability. A consensus mechanism may also be used to allow participants in the decentralized system to agree on the advancement blockchain data in an orderly way.
1. A computer-implemented method comprising:
maintaining a stable value of an asset token relative to a value of an underlying target asset;
receiving, from a proposer node, a proposed block, wherein
the proposer node includes a first computing device configured to assemble the proposed block from one or more pending transactions,
the proposer node is deterministically elected from a plurality of validator nodes, and
the plurality of validator nodes elect the proposer node based on a proportion of mining tokens the proposer node controls;
casting, at a validator node of the plurality of validator nodes, a cryptographically signed vote to accept or reject the proposed block, wherein the validator node includes a second computing device configured to inspect the proposed block to determine validity of the proposed block;
minting the asset token in variable quantities; and
obtaining feedback from a trading market to determine the variable quantities of the asset tokens to mint.
2. The computer-implemented method of claim 1 , further comprising applying a variable transaction fee to decrease a quantity of the asset tokens in circulation.
3. The computer-implemented method of claim 1 , wherein obtaining feedback from the trading market comprises receiving a market price of the asset token from an oracle.
4. The computer-implemented method of claim 3 , wherein receiving the market price of the asset token from the oracle includes a market price from a cryptocurrency exchange platform.
5. The computer-implemented method of claim 1 , wherein minting the asset token in variable quantities is in response to:
the proposer node assembling the proposed block to add to a blockchain; and
receiving a predetermined portion of acceptances for the proposed block from at least one validator node of the plurality of validator nodes of a blockchain network.
6. The computer-implemented method of claim 5 , wherein the predetermined portion comprises two-thirds of the plurality of validator nodes voting in the blockchain network.
7. The computer-implemented method of claim 1 , further comprising sending a portion of the minted asset token quantity to an oracle.
8. The computer-implemented method of claim 1 , wherein the underlying target asset comprises at least one of a national currency or a basket of national currencies.
9. The computer-implemented method of claim 1 , wherein the underlying target asset comprises at least one of a cryptocurrency or a basket of cryptocurrencies.
10. The computer-implemented method of claim 1 , wherein the underlying target asset comprises at least one of a stock or a basket of stocks.
11. The computer-implemented method of claim 1 , wherein the underlying target asset comprises at least one of a commodity or a basket of commodities.
12. The computer-implemented method of claim 1 , wherein the underlying target asset comprises at least one of a financial asset or a basket of financial assets.
13. The computer-implemented method of claim 1 , wherein minting the asset token in variable quantities is based on a minting quantity of at least one previous block in a blockchain for the asset token.
14. The computer-implemented method of claim 13 , wherein the variable quantity is higher than the minting quantity of the at least one previous block in response to a market price of the asset token being higher than a target price of the asset token.
15. The computer-implemented method of claim 13 , wherein the variable quantity is lower than the minting quantity of the at least one previous block in response to a market price of the asset token being equal to or lower than a target price of the asset token.
16. The computer-implemented method of claim 13 , wherein a mathematical function for calculating the variable quantity mintedAmount(b) includes:
mintedAmount
(
b
)
:=
{
42
b
=
1
(
initial
)
mintedAmount
(
b
-
1
)
b
mod
n
≠
1
(
no
-
change
)
min
(
UP
×
mintedAmount
(
b
-
1
)
,
cap
(
b
)
)
b
>
1
,
b
mod
n
=
1
,
p
(
b
)
≥
p
(
b
-
1
)
≥
1
(
ratchet
-
up
)
max
(
mintedAmount
(
b
-
1
)
DOWN
·
0.000001
)
otherwise
(
ratchet
-
down
)
wherein
b is a block number,
UP is a first adjustment factor,
DOWN is a second adjustment factor,
cap(b) is a minted amount cap for a block specified by the block number b,
n in an interval size, and
p(b) is a market price of the asset token for the block specified by the block number b.
17. The computer-implemented method of claim 16 , wherein a mathematical function for calculating p(b) includes:
p
(
b
)
:=
∑
t
∈
T
(
b
)
P
t
V
t
∑
t
∈
T
(
b
)
V
t
wherein
T(b) is a plurality of price-determining transactions for the block specified by the block number b,
t is a price-determining transaction within the plurality of price-determining transactions,
P(t) is a price of the transaction tin the target asset, and
V(t) is the volume of the transaction t.