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 "name": "Stability mechanisms",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3249860-031",
   "identifier": "kaal:claim:3249860-031",
   "text": "Unlike deflationary token models, inflationary token models permit the use of stability mechanisms, which is why inflationary designs may become more popular as the cryptocurrency market matures.",
   "abstract": "Unlike deflationary token models, inflationary token models allow the use of stability mechanisms.",
   "citation": "Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860",
   "datePublished": "2018",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "as the cryptocurrency market matures"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3249860-032",
   "identifier": "kaal:claim:3249860-032",
   "text": "It is unclear whether the cryptocurrency market on its own can over time produce the level of stability and absence of volatility that cryptocurrencies need to become truly mainstream.",
   "abstract": "It is unclear if the cryptocurrency market alone will over time be able to create the level of stability and lack of volatility that is needed for cryptocurrencies to become truly mainstream.",
   "citation": "Wulf A. Kaal, Crypto Economics - The Top 100 Token Models Compared (2018). SSRN: https://ssrn.com/abstract=3249860",
   "datePublished": "2018",
   "claim_type": "failure",
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   "is_failure_mode": true,
   "scope_conditions": [
    "absent external stabilization"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3396522-005",
   "identifier": "kaal:claim:3396522-005",
   "text": "Every stable cryptocurrency project, Tether included, remains afflicted with significant design challenges; no existing design has solved the stability problem.",
   "abstract": "Like all other stable cryptocurrency projects, Tether is still afflicted with significant design challenges.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "asserted",
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   "scope_conditions": [
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   "identifier": "kaal:claim:3396522-013",
   "text": "No uncollateralized algorithmic stable cryptocurrency, such as Basis or NuBits, had produced a provably stable mechanism for its tokens as of the time of writing.",
   "abstract": "At the time of this writing no uncollateralized algorithmic project had created a provable stable mechanism for its tokens.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522",
   "datePublished": "2019",
   "claim_type": "failure",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3396522-022",
   "identifier": "kaal:claim:3396522-022",
   "text": "Capping token supply, the dominant design choice in early cryptocurrency projects, is self defeating: fixing supply removes the core policy tool, minting additional tokens, that would otherwise address overvaluation, excessive speculation, market frenzy, and irrational exuberance.",
   "abstract": "In fact, fixing token supply removes the core policy tool, minting of additional tokens to increase supply, intended to address overvaluation, speculation, market frenzy and irrational exuberance.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "applies to hardcoded fixed supply token designs"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3402701-007",
   "identifier": "kaal:claim:3402701-007",
   "text": "Good governance principles are crucial to every aspect of a long-term stable currency because markets inevitably change and because the Folk Theorems of game theory pose a fundamental obstacle to any fixed protocol.",
   "abstract": "Most importantly, good governance principles are crucial for every aspect of instituting any long-term stable currency due to inevitable changes in the market and the fundamental obstacle represented by the Folk Theorems of game theory",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
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   "@id": "https://wulfkaal.github.io/claims/3402701-012",
   "identifier": "kaal:claim:3402701-012",
   "text": "Because no fixed rule set can resist a patient adversary, any stable coin scheme requires a nimble and responsive governance process whose rules can always be adjusted to changing market conditions.",
   "abstract": "This means a nimble and responsive governance process is required for any such stable coin scheme, because the rules must always be ready to be adjusted to respond to the changing conditions of the market",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
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    "stable coin schemes operating over time in changing markets"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3402701-017",
   "identifier": "kaal:claim:3402701-017",
   "text": "Reserves, not bonds, are the necessary mechanism for currency instability caused by hot money, that is money frequently moved between institutions or currencies to maximize gain.",
   "abstract": "Reserves are necessary to address the instability of a currency due to hot money",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
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 "description": "8 claims in the published works of Wulf A. Kaal carry the concept tag 'stability-mechanisms'. Derived node: a roster, not an adjudicated definition."
}