The first decentralized and excessively collateralized “flatcoin” in the world, Nuon, has officially launched its testnet, according to blockchain development company Laguna Labs. The value of flatcoin is linked to the cost of living, a topic frequently discussed by cryptocurrency pioneers including Brian Armstrong, Balaji S. Srinivasan, and Vitalik Buterin.
The worth of a Nuon flatcoin is dependent on daily unbiased, real-time, on-chain inflation data, unlike the majority of stablecoins that are tied to declining assets like the US dollar. This means that from the time it is purchased until it is sold, a Nuon’s purchasing power remains unchanged, or “flat.”
What is Nuon?
Nuon is considered to be the worlds first flatcoin. It is the next-generation stable coin which protects your purchasing power from inflation-related value loss by maintaining a peg to the cost of living. It is an inflation-resistant coin. Nuon’s decentralized governance concept, which is censorship-resistant and people-powered, fuels the people’s inflation-proof economy.
What is a Flatcoin?
What is a flatcoin you ask? Well, a flatcoin is a new kind of stablecoin that focuses on beating inflation by being pegged to the cost of living instead of being based on fiat linked assets. As inflation rates go up, flatcoin prices go up as well.
The Launch of Testnet Ju
On the protocol’s first testnet, which was created to let developers and community members take part in the growth and development of this innovative new project, participants can now test the Nuon minting mechanism.
Stefan Rust, CEO of Laguna Labs, comments on the introduction of Nuon’s testnet: “Crypto has depended on centralized, diminishing assets for its stablecoins for far too long. This has not presented a business risk and concentration, but it is also not a true representation of people’s lives.
“Nuon, which is the world’s first flatcoin offers a workable alternative to this setup and is the first cryptocurrency to address one of the biggest issues facing modern society: inflation. Nuon is the world’s first digital asset designed to aid people in maintaining their purchasing power. It is fully decentralized, censorship-resistant and over-collateralized. We encourage all users to test it out on our testnet because we want to know how you feel about it”
Influential blockchain inventors have regularly looked into the concept of a flatcoin in response to rising global inflation and rapidly diminishing fiat currencies. Among them is Balaji S. Srinivasan, the former CTO of Coinbase, who investigated the flatcoin idea in several Twitter threads as a means of avoiding the diminishing of the US dollar in stable digital assets.
Buterin calls for de-pegging from fiat
Vitalik Buterin, the creator of Ethereum, expressed this sentiment in a recent podcast, saying that in order to avoid future concentration and regulatory problems, the cryptocurrency industry should get ready to de-peg from an excessive dependence on any one asset. The alternative, he continued, would be to fix the rate to a neutral Consumer Price Index (CPI).
Finally, Coinbase founder Brian Armstrong told the following to Tim Ferris last week:
“We need a currency that isn’t tied to fiat in the crypto sector, in my opinion. It would also be delightful to have a stablecoin, like a flatcoin, that is connected to purchasing power. Currently, we have USD Coins, which are backed one to one by the dollar, and decentralized stablecoins like DAI. Like, today, one coin will get you a McDonald’s cheeseburger, and hopefully in five years, that will still be the case.”
Laguna is creating a resilient economy. The first flatcoin in the world whose value is linked to the cost of living, Nuon, will provide the energy for this distinctive ecosystem. Truflation, a leading on-chain cryptographically truthful economic data aggregator, provides data for Nuon. Additionally, Laguna Labs is home to Verified Node, an ultra-quick, friction – free chain, and a Web3 wallet that opens the door to a future where your wealth is secured.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.