Benzinga - Nuon launches testnet for crypto's first flatcoin

This article originally appeared on Benzinga.

Cost of living-linked stable coin project goes public

HONG KONG, Oct. 24, 2022 /PRNewswire/ -- Blockchain development house Laguna Labs has announced the launch of its testnet for Nuon: the world's first decentralized and overcollateralized "flatcoin". Frequently discussed by crypto founders like Brian Armstrong, Balaji S. Srinivasan and Vitalik Buterin, the value of flatcoin is pegged to the cost of living.

Unlike most stablecoins that are pinned to depreciating assets like the US dollar, the value of a Nuon flatcoin is based on daily unbiased, authentic, and on-chain inflation data. This means a Nuon's purchasing power remains constant - or "flat" - from the moment it is bought to the moment it is sold.

Users can now test the Nuon minting mechanism on the protocol's first testnet - launched to allow developers and community members to participate in the growth and development of this revolutionary new project.

Commenting on the launch of Nuon's testnet, CEO of Laguna Labs Stefan Rust says: "For too long has crypto relied on centralized, depreciating assets for its stablecoins. Not only has this presented concentration and counterparty risk, but it is simply not an accurate reflection of people's lives.

"Nuon - the world's first flatcoin - provides a viable alternative to this system and is the first cryptocurrency to solve a massive real-world problem today: inflation. Fully decentralized, over-collateralized, and censorship-resistant, Nuon is the first digital asset aimed at helping people preserve their purchasing power. We invite any and all users to come and try it out via our testnet - we want to know what you think!"

In the face of rising global inflation and fast-depreciating fiat currencies, the concept of a flatcoin has been frequently discussed by influential blockchain founders. These include Balaji S. Srinivasan, ex-CTO of Coinbase, who in a number of Twitter threads explored the flatcoin concept as a way to avoid US dollar depreciation in stable digital assets.

This was echoed by Ethereum founder Vitalik Buterin, who in a recent podcast stated that crypto should prepare to de-peg from overreliance on any one asset to avoid potential concentration and regulatory risks. He added that a peg against an unbiased Consumer Price Index (CPI) would be an alternative option.

Finally, speaking to Tim Ferris last week, Brian Armstrong, founder of Coinbase, said: "In the crypto economy, I think we need to have a currency that's not linked to fiat. We have USD Coin which is backed one to one by the dollar, and then we have decentralized stablecoins like DAI, but it would be nice to have a stablecoin, like a flatcoin, that is linked to purchasing power. Like, every one coin buys you a McDonald's hamburger today, and hopefully, in five years, one coin will still buy you a McDonald's hamburger."

This article originally appeared on Benzinga.