Whitepaper ​

Problem Statement ​

Since the creation of Bitcoin, cryptocurrencies have demonstrated enormous potential. Yet, despite over a decade of progress, they remain far from achieving mainstream adoption as everyday money. The core reason is that most cryptocurrencies are not designed around the economic principle that underpins real-world markets: stable production costs and adaptive supply. Instead, they rely on rigid or artificial models that lead to volatility, inefficiency, and centralization.

Inflexible Supply Model ​

Traditional cryptocurrencies typically follow one of two paths:

Fixed (deflationary) supply, as in Bitcoin, where issuance is predetermined and halved over time.

Inflationary supply, where coins are continuously minted regardless of demand.

Both approaches create instability. Fixed supply leads to artificial scarcity and speculation, while continuous inflation dilutes value. Neither system responds to real-world demand. This disconnect drives volatility and encourages hoarding instead of everyday utility.

Unstable Mining Economics ​

In Bitcoin and similar systems, mining costs fluctuate dramatically. Difficulty adjustments change the computational burden without anchoring it to a stable cost per unit of currency. When difficulty rises, miners face unpredictable costs, forcing small miners out and concentrating power in industrial operations. This undermines decentralization and weakens the resilience of the network.

Price Volatility ​

Without a mechanism to balance supply with demand, cryptocurrencies leave price as the only variable that can adjust. This results in extreme volatility, which discourages use as a store of value or medium of exchange. Businesses and individuals cannot rely on such assets for daily transactions, limiting real-world adoption.

Barriers to Accessibility ​

Mining in traditional Proof-of-Work systems is increasingly inaccessible. Specialized hardware, fluctuating difficulty, and centralized mining pools create high barriers to entry. This reduces participation, limits geographic diversity, and concentrates wealth and power in a few large entities.

Centralization of Mining Power ​

The rise of mining pools has concentrated hash power into the hands of a few dominant players. In many Proof-of-Work blockchains, a small number of pools control the majority of network resources. This erodes decentralization, reintroducing a form of central control that blockchains were originally designed to eliminate.