demurrage-monetary-policy
A monetary policy mechanism where earned EDTCs expire and disappear after a certain period to maintain ecosystem stability.
1 chapter across 1 book
Building the New Economy: Data as CapitalAlex Pentland, Alexander Lipton, and Thomas Hardjono
The chapter presents the Tradecoin System, a novel asset-backed digital currency designed to provide a stable, scalable, and environmentally friendly medium of exchange for international trade and smaller economies. It details the system's architecture, including three independent ledgers managing assets, coins, and Chaumian eCash, and explains the mechanisms for maintaining price stability through sponsor actions and consortium governance. Additionally, the chapter introduces the Environmental Digital Tradecoin (EDTC) variant with a demurrage-based monetary policy to incentivize climate-positive behaviors, highlighting Tradecoin's potential as a supranational currency that balances privacy, regulatory compliance, and ecosystem stability.