Overview
MODERN MONEY
Modern currencies are credit based. In layman's terms the amount of money in circulation (supply) is automatically adjusted by market participants (i.e. banks). Banks are creating money when issuing loans and burning money when a loan is repaid.
The stability is secured or fortified by central banks, adjusting certain base parameters and by the market via the banks adjusting their loan conditions.
This system has its flaws and it can be corrupted by governments and banks but in general that's how the monetary system ensures there is always as much money available in the economy as needed.
AUGMINT
Augmint is built on the concept of automatically adjusting the supply of each Augmint token in a similar way as modern fiat money but in a transparent, decentralised and secure fashion.
Augmint tokens are only issued when a new, collateral based loan is created. Tokens are burnt on repayment. In case of loan default the collateral goes to Augmint stability reserves, managed by smart contracts. It all happens in an automated, cryptographically secure and decentralised way.
Parameters for the new loans, the use of the reserves for market interventions are decided by transparent and open governance processes.
A-EUR is the first Augmint token implemented. A-EUR is targeted to EUR.
How it works
STABILITY
There are multiple mechanisms to ensure the market expectation and the actual price is around parity to the targeted currency.
MARKET MECHANICS
The primary foundation of stability is the continuous supply of Augmint tokens via loan originations and a corresponding demand for paying back loans on maturity.
Further specific features of the Augmint system will work towards maintaining stability by smoothing the demand & supply peaks and troughs.
LOAN PARAMETERS
If A-EUR price deviating from parity then loan parameters are adjusted to make it more or less compelling to get A-EUR loan for a certain digital asset. This has an effect on A-EUR demand/supply.
MARKET INTERVENTION
Augmint can intervene from its reserves accumulated from fees, defaults and interests. Augmint reserves can be used on held only for market intervention.
Check out our white paper for additional tools and more scenarios.
GET A-EUR
You can always buy or sell your A-EUR for cryptocurrencies (ETH, BTC etc.) on a decentralised exchange. Secondary exchanges will offer direct fiat conversions to/from A-EUR as well. As the Augmint ecosystem grows you will need less and less to exchange Augmint tokens to fiat money.
Governance
The fundamental rules, agreements and funds are maintained and enforced by smart contracts - cryptographically immutable algorithms running on the blockchain.
We aim to handle as many "decisions" as possible with smart contracts but it's not feasible to prepare for every case with automated smart contracts, such as financial parameters, trusted price oracles, new digital assets, contract releases.
These decisions are made by stakeholders - governance token (GDC) holders. Augmint's governance model ensures that all decisions are democratic and transparent.
Access to GDC is open to anyone who is willing to deposit A-EUR tokens. To incentify holding and voting with GDCs the profit from fees is distributed among GDC holders.
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