DasCoin: White Paper & Economic Simulation
In November 2016, Z/Yen Group organised a Long Finance seminar to explore the intellectual underpinning of the DasCoin cryptocurrency, ahead of its official launch in 2017. Participants were particularly interested in the hybrid approach combining centralised and decentralised features, the whitelisting process (KYC processes), and the referral-based licensing system. They were equally interested in the opportunity for capital appreciation within the system. They noted however the need for clarity on how DasCoin would work in practice, notably the conversion process between fiat currency (Euros, US dollars) or Bitcoins and Cycles, on the one hand, and then from Cycles to DasCoin on the other hand.
Following the publication of the seminar proceedings, DasCoin asked Z/Yen Group to produce a white paper and run an economic simulation exploring in-depth the intellectual underpinnings of DasCoin under a range of plausible scenarios. The economic simulation is intended to provide a means of discussing the economics of DasCoin with outsiders, and could form the basis for the specification of a “market quality” dashboard for discussion with regulators and academics.
Starting in March 2017, this project seeks to add clarity on how DasCoin will work in practice. As part of it, Z/Yen will carry out a detailed analysis of the key features of the system including token exchange, conversion mechanisms, capital appreciation, and governance. The project aims to run an economic simulation of DasCoin under various scenarios taking into account variables such as conversion rates, market capitalisation and volatility.
A webinar will be held in April to present interim findings. The outputs – the simulator and a white paper suitable for submission to a reputable journal – are expected to be delivered in May 2017.
- "Modelling the Economics of Cryptocurrencies", Long Finance webinar, Tuesday 4 April 2017
- "DasCoin: A Hybrid Digital Store Of Value System", Long Finance seminar, London, 21 November 2016
- "DasCoin: A Hybrid Digital Store Of Value System", Long Finance Seminar Proceedings, January 2017
- "On the Value of Virtual Currencies", Bank of Canada, Working Paper 2016-42, August 2016
- The Macroeconomics of Central Bank Issued Digital Currencies, Bank of England, Staff Working Paper 605, July 2016
- "The Economics of Digital Currencies", Bank of England, Quarterly Bulletin 2014 Q3
- "Concepts of Equilibrium Exchange Rates", Bank of England, Staff Working Paper 248, 2004