Minexcoin (MNX), the Ukrainian blockchain-based startup is currently in the process of designing an entire ecosystem that revolves around the idea of creating a low-volatility cryptocurrency.
It hopes to have a self-regulating mechanism in place, that will moderate any price swings, making it a less risky investment, and allowing users to be more certain of its value on day-to-day basis.
The project is also employing atomic swaps in its crypto model, which will, if successful, allow people to directly trade the currency to other people without having to rely on traditional crypto exchanges. Recently, the company boasted about its successful atomic swap test, saying that it would soon become the first to bring it beyond an experimental testing stage.
Minexcoin is now implementing what it’s calling «four function development strategy», which includes introducing a set of features that it has set as criteria for what it calls real money. These features are: equivalent value, means of payment, means of circulation, and means of saving and accumulation.
According to the company, for any asset to become a full-fledged money, it must completely satisfy this criteria and the more of these functions it takes on, the more it becomes a «real money».
The first condition, money as a means of saving and accumulation, is basically saying that money must be a good way to preserve a person’s wealth and the value of their savings.
In the MNX system, a product called Minexbank (or an autonomous algorithm for smoothing the volatility) is responsible for preserving the token’s value.
The second condition, equivalent of value, allows users to measure the value of things by a common denominator – by the currency itself, and the monetary units its denominated in. This is yet another standard condition recognized by most economists for something to be considered money.
The other two qualities, means of payment and means of circulation, are fairly self-explanatory. Money must be widely accepted as a payment method, thus it must be considered a medium of exchange that is circulated across different markets.
Minexcoin believes that if you have these qualities in a cryptocurrency, then, what you really have is money.