# About Flatcoin

Mar 6, 2024

l Definition of Flat Coin

Unlike stablecoins, which are fixed to the nominal value of a currency or asset, Flat Coin is designed to maintain a constant quantity of goods that can be purchased regardless of rising living costs. In other words, if the value of fiat currency increases, the value of Flat Coin also rises, offsetting the perceived rate of inflation and providing a consistent value maintenance and better investment returns.

l How Flat Coin Works

Flat Coin is backed by a software-based algorithm instead of actual collateral. It is pegged to a broad range of inflation indices to maintain a stable level of purchasing power across various financial situations and countries. Its real value is kept constant regardless of fluctuations in fiat currency or inflation rates, which traditional stablecoins cannot achieve. As inflation rises, the supply of Flat Coin is increased to match rising prices, ensuring purchasing power.

l Difference Between Flat Coin and Stable Coin

Although FlatCoin and stablecoins share the goal of price stability, they achieve it through different mechanisms.

l Advantages of Flat Coin

Inflation Resistance

Flat Coin can act as a safe haven for investors seeking stability in unstable financial markets, protecting against the adverse effects of inflation.

2. Maintaining Constant Purchasing Power

As living costs increase, the value of Flat Coin also rises in tandem, reflecting real economic situations in financial interactions and thus protecting assets.

3. Unrestricted Financial Services

Considering the reality that many people worldwide cannot access the banking system, Flat Coin provides financial services that allow anyone to manage and use their assets, preserving income value and escaping financial exclusion.

4. Guarantee of Equal Exchange Value as a Medium of Exchange

It is unaffected by currency devaluation and bridges the gap between virtual and real transactions, enabling its use as a global exchange medium across borders.

l Examples of Flat Coin Issuance Abroad

NexaStash (NXS)

Operating within its proprietary on-chain oracle, NXS or NexaStash calculates inflation rates using extensive datasets obtained from over 18 million verified sources. This flat coin offers holders the ability to redeem NXS at a 1:1 ratio for the underlying asset, ensuring that all holders can maintain the value of their assets in relation to inflation.

Laguna Labs ‘Nuon’

The world’s first over-collateralized and decentralized ‘flat coin,’ Nuon’s value is not fixed to depreciating assets like the US dollar, unlike most stablecoins. Instead, the value of Nuon flat coin is based on unbiased real on-chain inflation data, helping to preserve people’s purchasing power.

Spot

A project by the Ampleforth Foundation, Spot is fixed to the cost of living in the USA, providing an inflation-resistant safe asset designed for long-term stability. It can serve as a refuge from inflation, be directly held, used as P2P digital cash, or serve as an alternative collateral asset within traditional reserves against USDC.

Collypto

A flat coin designed to maintain purchasing power regardless of market volatility or other value fluctuations. Its value is pegged to tokenized indices of real estate and commodities, not as a secondary currency, security, or asset, making it a coin that securely stores intrinsic value.

LendrUSD

A unique flat coin with a price target fixed to an inflation index. It is precisely aligned with the current inflation rate of the US dollar, using a special inflation index provided by unbiased on-chain oracles to calculate the real rate and adjust the token’s price accordingly.