Anchor�s Solution for Preserving and Enhancing Value over Time Is Made Possible by Pegging to the Mmu. Here�s how the MMU works/retains value over time.
The question of using/managing money, which is something that fiat currencies have been successful at forever, is answered through the use of a payment token (which is not an asset, as that would slow the token down and limit its versatility). The added bonus to this is the benefit of using blockchain technology. The benefit here lies in the nature of the blockchain and everything that comes with it in terms of trust and transparency. The same has been achieved by other stablecoins but those coins still do not have a solution for the issue of preservation of the purchasing power. For that reason, Anchor needed to peg itself to a unit of value that is immune to inflation, unlike the US dollar to which many of the other fiat-collateralized stablecoins are pegged.
So instead of pegging to a monetary mass of a certain currency, which would inevitably lead to inflation, Anchor needed a peg that will remain stable indefinitely to be able to preserve (keep stable and slightly increase) the value. The index that was created to achieve that goal (and not just that) is named the MMU.
So, what are the assumptions it rests on and what are its main elements?
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