Algorithmic Monetary Policy

By: Geeq

Geeq Founder John P. Conley, discussed the extremes of a pegged token versus a free-floating token in a talk called “Algorithmic Monetary Policy for a Stabilized Token, in the one day Macro.WTF session, San Francisco Blockchain Week, October 2019.

The brief history of digital currencies has not been surprising to John nor to the many in his audience who have long experience with the track record of fiat currencies. Nonetheless, John sought to convince his audience that there is a vast difference between analyzing the underlying issues in a cryptocurrency market retrospectively versus using the accumulated knowledge of macroeconomics to think about tokenomics and monetary policy proactively; in particular, before a blockchain project such as Geeq issues a native token.

Blockchain technology has ushered in the ability to make credible commitments in digital currency policy that can support a token whose value moves between the extremes of a fixed peg and a free float. John called this a stabilized-token and clearly explained the differences between a stabilized-token and a stable coin.

Blockchain technology provides issuers an unprecedented opportunity to commit to a transparent and algorithmic policy, called an Algorithmic Monetary Policy (AMP), to reduce the uncertainty and volatility surrounding its native stabilized-token, thus allowing both the blockchain economy and the market for its native token to enjoy market conditions more conducive to growth. A well-designed AMP works to dampen the tendencies for thin markets to fall into a vicious volatility cycle, by taking advantage of a significant opportunity to decentralize monetary policy.

Please enjoy the slides HERE.

$Geeq will be a stabilized-token.

For more information about how Geeq will deploy Algorithmic Monetary Policy in the market for its stabilized-token after main-net, please see Geeq’s Algorithmic Monetary Policy paper here.