SPOT — An Inflation Resistant Store of Value
Date: October, 2022
Authors: Evan Kuo, Brandon Iles, Nithin Krishna, Manny Rincon-Cruz
Permissionless, peer-to-peer, cryptocurrencies have been successfully developed, but these are too volatile to be used non-speculatively. Alternatively, Treasury backed stablecoins and central bank digital currencies can work as dollar substitutes, but they do not solve the current problem of inflation, a perennial weakness of all post-1970 fiat currencies. This paper presents a path beyond speculative tokens and dollar substitutes. We describe and outline a unique contribution that combines AMPL (an inflation-tracking unit of account) with Buttonwood Tranche (a protocol for resegmenting volatility into collateralized tranches) to produce SPOT—an inflation-resistant store of value.
Keywords: inflation, inflation resistance, central bank digital currency, central banking, store of value, privacy, cryptocurrency, information centralization, tranching, bank runs