A stablecoin for the apocalypse – Hacker Noon

Disclaimer #2: I am not involved with the Ryo project in any way, but I do intend on participating in their airdrop.

Side note: the Ryo project I talk about below has NOTHING in common with Ryo, the Sumokoin fork. Afaik, there are plans to change the name.

The only crypto that I know of that might have a chance of functioning in an apocalypse today is Ryo.

The main focus of this project is to create a cryptocurrency with a dynamic money supply rate that adjusts based on the price of money in the system, minimizes economic shocks and is an ideal medium of exchange.

In fiat, a central bank has a monopoly on money supply, meaning that they dictate the price of money by creating the amount that suits regulator strategy. Ryo proposes a system in which the price of money is the result of free market economics, or simple supply and demand. The gist of it to cut out the fed and commercial banks from the money creation process and to make a fairer type of money.

In order to achieve this, Ryo has a two token architecture. Ryo tokens function as exchangeable money and Trust tokens serve as a credit score of sorts. Trust tokens cannot be transferred from account to account. An account can increase its Trust token balance by engaging in peer-to-peer loans (by lending money and by paying back loans with interest).

Accounts with higher Trust token balances are able to create more money when they mine Ryo, so every miner is like a mini central bank. The Trust balance also functions as a nifty credit score for an account as it reflects economic behavior.

When the price of money and interest rates are low, more people are likely to take out P2P loans and successfully pay them back with interest. This will result in many accounts with high Trust balances, causing an increase in the money creation rate in the short term.

“every miner is like a mini central bank”

On the other hand, when the economy slows, the price of money will increase and less people will engage in loans, causing Trust to be lower across the system. This will result in a slower rate of money creation in the short term.

This concept is elegant and seems to promise money supply rate changes as offered by fiat, but in a completely decentralized way while being a better store of value than fiat. Also, P2P loans replace the need for institutional loans seen today. Economically speaking, Ryo could exist in a vacuum and be perfectly fine.

From a technical perspective, Ryo is based on a clone of Nxt source code. When a miner generates new money, they also secure the blockchain. This process is coined as Proof of Trust, a twist on PoS that uses the Trust token as the stake parameter instead of the actual token stake as seen in traditional PoS.

The core blockchain tech is very very similar to Nxt, which is probably a good thing as Nxt is a mature project. Ryo is currently in testnet, so I have little doubt that changes will still be made down the line. I know the project is looking for more devs. If you have more questions I recommend reading the whitepaper at the Ryo website — it addresses economic aspects of the project in more detail and also drills down into technical/cryptographic questions.

The important thing to note, is that Ryo seems to have the potential to provide a secure, divisible and scalable solution that fits the apocalypse-ready template very well.

Lastly, Ryo is not an ICO. The anonymous team has been developing the product for about a year and are close to launching mainnet, which is refreshing after so many projects that have nothing beyond a whitepaper. They plan on distributing the first chunk of coins via airdrop to Nxt owners, however final details are not yet published at time of writing.

Philosophically speaking, they believe that Bitcoin is the ideal store of value and view Ryo as a medium of exchange in synergy with Bitcoin. They intend on open sourcing the code alongside the launch.

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