Cryptecon analyzed the price stability of a next-generation video platform which is currently under development by the Verasity Foundation.
The platform enables viewers, content producers and advertisers to exchange services based on a specialized cryptocurrency. This allows different players to interact directly without expensive middlemen earning large shares of content producers’ revenues. By regulating money supply, the Verasity Foundation intends to stabilize price levels of the platform.
We conducted simulations to test whether the proposed minting mechanism can result in a stable economy. Based on the information provided by verasity.io and assumptions about the behavior of speculators, cryptecon modelled the price level development. We come to the conclusion that the planned mechanism for money supply is capable of creating reasonable price stability.
Economic report available at: https://verasity.io/documents/verasity_economics_eng.pdf