A cryptocurrency token tied to the standard of living has appeared

Laguna Labs has launched a test network for the so-called Nuon flatcoin, which will have a value equal to the cost of living. As Laguna Labs developers explained, the token price will be calculated based on inflation data.

The idea of creating a new cryptocurrency arose from a Twitter discussion involving well-known members of the cryptocurrency community, including Coinbase CEO Brian Armstrong and Ethereum co-founder Vitalik Buterin. During one of the discussions, it was suggested that the value of tokens should be pegged in an alternative way to ensure that they retain their purchasing power for a long time.

Currently, there are few details about the functionality of the Nuon test network, but the developers are already working on the release of flatcoins. The idea of creating a token tied to the inflation rate is not new — in April, Frax Finance launched the Frax Price Index stablecoin, the value of which is tied to the consumer price index. The Volt Protocol project has a similar token.

As a reminder, the THE meme cryptocurrency, proposed by Vitalik Buterin as a joke, has grown by 119,000% as of October 23. Only on October 14, the father of ethereum wrote on Twitter that someone should create a project called «THE protocol» to take advantage of how often this article is used in English. Soon after, an unknown development team did indeed launch a project called The Protocol with a native THE token.