kaal:claim:3402701-013

Bonds are the appropriate burning mechanism for a temporary drop in currency price caused by larger economic instability such as an act of God or war, since bonds can be redeemed above their sale price once the economy rebounds.

Source quote, verbatim

Bonds should be used to address a temporary larger economic instability which lowers a currency's price--due to an act of God, for instance, or war

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.1.2.1 Bonds, p. 17
https://ssrn.com/abstract=3402701 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

Holds when

price decline caused by temporary economy-wide shock, not hot money

Classification

designsupport: arguedtokenomics

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