O Coin Needs Proof of Work for Trust, and Layer 2 for Scale
O Coin has one job: to be money people actually use.
Not a store of value. Not a bet.
A transactional currency for every country, with its reference value tied to something universal: the local price of one liter of potable water.
The blockchain measures water prices and observed exchange rates. It then publishes the reference rate for each O currency.
Nobody is forced to follow it.
People, businesses and governments remain free to exchange O at another rate. But that choice has an economic consequence. When a currency moves away from its water-price reference, the protocol creates value for participants who continue to respect the stable rates.
Those who move away from the reference are not fined. Their coins are not confiscated. They simply enrich, through relative dilution, the people and currencies that remain aligned.
The offender's sanction becomes the reward of the offended.
That is the stabilization...
Copyright of this story solely belongs to hackernoon.com. To see the full text click HERE