Speed, security, privacy and evading third party involvement is need of the hour in current time. the basic problems we all are facing in the mutual transactions ecosystem are the big hurdles of the current market growth. Time is money and what we face that our transactions are stucked and the third party involvement make it further costlier.

DеFі hаѕ сhаngеd a lot оf things іn trаdіtіоnаl financing. Thіѕ has bееn орtіmіzеd to іnсludе innovative technologies оn thе blockchain that will tаkе dесеntrаlіzаtіоn to glоbаl recognition аnd аdорtіоn. Aѕ оf thіѕ уеаr, ѕо many applications have been designed on thе Ethеrеum blосkсhаіn wіth thеіr functions, аll аіmеd at рееr-tо-рееr fіnаnсе. JaxNetwork іѕ the lаtеѕt of thоѕе DeFi platforms dеѕіgnеd to аdd vаluе to dесеntrаlіzеd fіnаnсе.

The economics of JaxCoin

Let us first explain the hybrid form of JaxCoin. It is not a peg, a commodity-based coin, or a fixed-supply coin that would artificially increase its market value. Our coin supply follows, nonetheless, some simple economic incentives.

Linking coin supply to a ‘cost-based’ incentive mechanism has some advantages. Recall that our coin supply is proportional to the aggregated mining work executed in the network. First, we avoid backing up our coin with some fiat currencies or other baskets of assets denominated in fiat, like stable coins currently on the market. As such, Jaxcoin prices should not be as much correlated as other assets with fiat currencies. In the crypto sphere, stable coins have been a hot topic for some years as investors need some stability in prices. A lot of coins provide some mechanisms to smooth out peaks and troughs, but they are always pegged to some assets or fiat currencies that defeat the purpose of a decentralized payment system backed by mathematical rules and economic incentives in the first place.

Excessive coin supply?

In this subsection we are going to discuss money creation and its potential impact for the value of JaxCoins. First, we need to give some definitions that will apply throughout the rest of the paper. First, we need to distinguish monetary creation from monetary mass.The later is the total of coins minted since the genesis block. The former is the increase in money supply within a time interval. In the blockchain network the measure of time is the number of blocks in the chain. The measure of money are coins. Coin supply at the block number n is the number of coins issued from the beginning of the chain up to the block number n inclusively.