The latest status
As of 2022 December, JohnLawCoin on the Polygon Mainnet does not have many users and it is hard to say it has boostrapped successfully yet. In parallel with running the JohnLawCoin experiment, I am actively working on the following two things:
- Use the Algorithmic Central Bank algorithm to enable developing countries to issue their own fiat currencies.
- Enable the central banks to issue Central Bank Stablecoin.
What is JohnLawCoin?
JohnLawCoin is a non-collateralized stablecoin realized by an Algorithmic Central Bank (ACB). The system is fully decentralized and there is truly no gatekeeper. No gatekeeper means there is no entity to be regulated.
JohnLawCoin is a real-world experiment to verify one assumption: There is a way to stabilize the currency price with algorithmically defined monetary policies without holding any collateral like USD.
If JohnLawCoin is successful and proves the assumption is correct, it will provide interesting insights for both non-fiat cryptocurrencies and fiat currencies; i.e., 1) non-fiat cryptocurrencies can use the algorithm to implement a stablecoin without having any gatekeeper that holds collateral, and 2) real-world central banks of developing countries can use the algorithm to implement a fixed exchange rate system for their fiat currencies without holding adequate USD reserves. This will upgrade human's understanding about money.
There are a couple of preceding examples of non-collateralized stablecoins like BasisCoin and Empty Set Dollar. However, none of the coins has succeeded in stabilizing the currency price in the long run. JohnLawCoin is yet another experiment to solve the not-yet-solved problem by addressing issues of the existing stablecoins. The key difference between JohnLawCoin and the existing stablecoins is that JohnLawCoin implements an open market operation to stabilize the currency price.
Three steps to start
Install MetaMask. MetaMask is a crypto wallet that enables you to connect to Ethereum-based blockchain from your browser. MetaMask supports Chrome, Firefox, Opera and Brave.
JohnLawCoin uses the Polygon Mainnet instead of the Ethereum Mainnet. The reason is that as of 2022 Jan, the transaction fee of the Ethereum Mainnet is too high for users to use JohnLawCoin ($60 - $250 per transaction). On the other hand, the transaction fee on the Polygon Mainnet is $0.01 - $0.1 per transaction. JohnLawCoin will revisit the option to use the Ethereum Mainnet when Ethereum 2.0 is available and lowers the transaction fee enough.
Follow @johnlawcoin on Twitter to get updates about JohnLawCoin.
How to contribute
If you want to contribute to grow the ecosystem of JohnLawCoin (thanks!), please do the following:
- Socialize JohnLawCoin with your friends using SNS, blog posts and media.
- Use JohnLawCoin. Vote on the oracle every week (then you can get some coins as a reward). Purchase coins issued by the Open Market Operation if any. Purchase bonds issued by the ACB if any (then you can get an interest rate when redeeming the bonds).
- Test JohnLawCoin on the Testnet and give us feedback.
If you have any feedback, create a GitHub issue, talk to @johnlawcoin on Twitter or email to johnlawcoin [at] gmail.com.
[Note: This product and opinions are the author's own and not the view of the author's employer.]