Vertcoin recently announced the move to an elastic distribution model that will bring incredible stability to its value.
Adam Rivera, one of the closely associated developers of Vertcoin elaborated the concept further by exemplifying the monopolized demand and supply rate in the market. Taking a jab at Bitcoin, he said:
“Many prominent economists have commented that the biggest thing holding Bitcoin back from ubiquity is their inelastic distribution model. The problem is one of market volatility – supply does not ever adjust to demand and thus you get massive swings in price (bubbles and crashes) […] the only reason Bitcoin has not suffered more as a result of their inelastic distribution model is because they were first to the scene. However, we believe eventually Vertcoin will outreach Bitcoin because of elasticity.”
Rivera then proposed a decentralized model which has the capability to adjust inflation and deflation in compliance with the rising and falling supply-demand ratio. For instance, in case of inflation the system will automatically reduce the supply of Vertcoin in circulation. While in case of deflation, the system will increase the supply; thus adapting to the changes to maintain the coin’s stability. In a best-case scenario, such an elastic distribution model will surely prevent dangerous price bubbles.
Rivera however shied away from sharing the details behind the development of this new model, though claimed to have found the solution to implement it. He also sought the community for participation in this project, while hoping to take Vertcoin to the next level of cryptocurrency technology.