Critique & Conclusion

Critique

Why not just use my own native/governance/utility token?

The problems with using a normal token (non-backed, free floating crypto) as a currency are well known. Between the volatility of the token, expense of transferring, lack of standardized tools for interacting, as well privacy concerns make most tokens a poor choice for a money.

In addition, many of the larger tokens and more established communities have needs that are not met by the protocol itself. Whether it’s the need of Bitcoin to have a developer fund, the desire of ETH developers to offset their carbon footprint, or a governance token wanting an ability to incentivize liquidity without diluting ownership, having a currency designed for flexibility and the ability to encourage certain activity is key to both gaining adoption for crypto, but also unlocking the potential of the underlying communities.

But why not just use a stablecoin?

Flexible monetary policies can create currencies that target specific use cases or goals. For example, if the goal is for the currency to be used as money or to increase the velocity of money in your given economy, then a deflationary currency or proper store-of-value coin would be a poor choice because parties are incentivized to save rather than spend the currency.

In addition, one of the novel new areas of experimentation in crypto is the use of inflationary rewards in a system to bootstrap certain policy goals. Whether you use inflationary rewards to increase security (as in the case of Bitcoin), or you want to use rewards to help alleviate some other tragedy of the commons (node operation, developer funding, environmental sustainability, student incentive programs, etc...), custom setups can allow community members to spend a currency that fits best with their specific values.

Conclusion

Chorus a structure for enabling organizations and communities to create trustless or trust minimized semi-stablecoins for use in their own ecosystem or economy. It has the potential to revolutionize how communities interact with one another and we look forward to building it and helping these communities grow.

If you’d like to help us build it, start a community currency of your own, or just learn more about Tellor, please reach out to [e-mail] or any of our social channels.