How is it different from other stablecoins?
Tether is fiat-collateralized with USD. Maker Dai is crypto-collateralized with Ether. Therefore both Tether and Maker Dai is essentially an IOU without any investment potential, and they hold up massive amounts of unused assets as collateral. Basecoin is non-collateralized similar to Xank, but it is controlling the money supply for the whole economy. Xank controls just the coin supply for the individual transactions without needing to create or destroy new coins in the process so; the whole money supply increases according to the mathematical rules in a deflationary way that Satoshi originally envisioned.
How do you solve masternode centralization?
Even though Dash has solved most of the scalability and privacy issues of Bitcoin by adding a masternode network layer, it created a potential centralization point for the Dash network. Xank has solved this issue by integrating a self-sovereign identity system so that single person can have only one voting seat although that person is allowed to have multiple masternodes for monetization purposes. Instead of Dash’s democracy model, Xank has implemented idea and social meritocracy model so that masternode’s voting power is weighted against his or her believability and social index scores for better decision making.
Is Xank a smart contract platform?
No, not at this time. We think Ethereum and all other smart contract platforms are great in theory but are trying to do little too much at the current blockchain scalability stage. It’s like trying to sell everything instead of focusing on books in Amazon’s early years. We think cryptocurrency should focus on currency before it expands into other areas with smart contracts. The CryptoKitties recently exposed venerability in Ethereum when you open your network via programming which a simple program brought down the entire network. We could easily add a smart contract feature once Xank platform matures enough to handle the load.
What will happen if extreme volatility hits?
Xank protocol is designed to be highly resistant to death spirals and positive feedback loops. Xank’s approach of having the floor allows the system to “default” transparently by de-pegging temporarily, and then gracefully re-pegging as Xank demand returns, rather than staying pegged for forever and then catastrophically failing. We are using SDR peg only during buy, sell, and settlement period that we call a “transaction lifecycle” and let supply and demand take over during other times making us the only stablecoin that has real investment value. This ensures it will perform as stablecoin 99.89% of the time which is much better than 0% of the time as other cryptocurrencies yet remains a free-floating cryptocurrency during normal times.
Won’t Bitcoin eventually have zero volatility over time?
No, Bitcoin is a fixed supply currency rather than an elastic supply currency such as USD. Therefore it can be compared to something like Gold. Historically Gold has about 15% volatility against USD annually. While 15% annual volatility is low enough to do “small” transactions, it is far too high for the non-negligible amount of time to settlement payments such as salaries and loans. Xank is a “pre-hedging” currency against a basket for the entire duration of settlement so that you never worry about the volatility.
How does the system survive a Soros type malicious attack?
A classic Soros attack would involve the following:
- Someone borrows a large number of coins for short selling.
- That someone floods the market with borrowed coins.
- When the price drops significantly enough, he/she then buys them back the coins sold short at a huge discount and return them to the lender making him/her huge sums of money.
Xank’s approach of having the floor and pegging only during the lifetime of a transaction can mitigate most of the malicious attacks of this type. All transactions have a start and end times. Xank protocol manages peg rates between times and both peg profits and loses are sent to the self-funding and self-governing reserve making it a very robust mechanism.
Can a system that isn’t backed by any tangible assets be truly stable?
Yes, USD is a good example of this. Before US President Nixon abolished what’s known as the Bretton Woods system, every country including the US maintained backing of Gold for its currency. Since then, the US money supply and consequently the global money supply has not been backed by any tangible assets.
Can Xank only be pegged to the IMF SDR?
No, the coin can be pegged to anything you can source exchange rate for. In the long run, when people use coins to purchase goods and services, the system can peg to a consumer price index (CPI) by uploading the price of a basket of goods instead of the coin to SDR change rate to the blockchain. We believe that IMF SDR which is a basket of world’s major currencies such as USD, EUR, RMB, JPY, and GBP peg is inherently more stable than just a single fiat currency peg alone. However, we peg to SDR only in the short run as a bootstrapping mechanism. In the long run, we shift the peg to a CPI, eliminating dependence on fiat while maintaining stability, usability, and sustainability.
What does the name Xank mean?
X can be infinity in mathematics. Thus Xank ® means you can put anything (aka. infinity) in the Bank. Our vision is to become the Bank of Values ®. We think that the future banks will be evolved into holding more than just money. It will hold other forms of values that are virtual such as time, royalty or identity.
How do you pronounce Xank?
Ask Alexa or Siri! Xank [zangk] is pronounced exactly like Zank [zangk].