Laguna Labs launches inflation-pegged "flatcoin"

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Laguna Labs has launched a testnet for the Nuon "flatcoin" under development - the cost of the token will bereflect the cost of living.

In a statement, Laguna Labs said that unlikeIn the case of Nuon, the indicator is "calculated on a daily basis based on objective and reliable inflation data."

The idea of such a "flatcoin" was taken from discussions on the social network Twitter, in which such major industry participants as the CEO participatedCoinbase Brian Armstrong, Ethereum co-founder Vitalik Buterin, and others. 

During these discussions, the idea was expressed that the token needs to be pegged in an alternative way so that it retains its purchasing power over time.So far, there are not many details about the functionality of the testnet for the Nuon token, but the developers can alreadyTry to issue "flatcoins".

While the concept of an inflation-linked token is not new, there have been virtually no real tests of such an asset so far.In April, Frax Finance launched the Frax Price Index stablecoin, the value of which is pegged to the consumer price index.The Volt Protocol project has a similar token.

Chainalysis previously reported that the use of dollar-pegged stablecoins is growing in Latin America, especially in countries with high inflation and devaluation.