COUNTERMEASURE TO STABLECOIN DEVALUATION
In this article, we will be laying our focus on the measures taken by Hela to prevent stablecoin devaluation but before then we have to first understand what is HeLa_Labs 👌
HeLa Labs is hi tech company developing a next-generation Layer-1 blockchain protocol. It is designed for real-world adoption together with renowned scientists and engineers.
HeLa also designs and combined outstanding features that can support builders of all levels, from startup to big enterprises. The HeLa ecosystem is open and inclusive, providing a level playing field for all builders to create and innovate.
MEASURES TAKEN BY HELA TO COUNTER STABLECOIN DEVALUATION
Hela uses stablecoin to settle transaction fees, and FIAT currencies exhibit inflation. Inflation leads to a diminishing purchasing power vis-avis other currencies or a basket of goods.
On the Hela blockchain the effect would be that transaction fees charged, do not adequately reward compute nodes anymore. Moreover, it also would devalue the insurance fund.
To address this issue, the Hela community can periodically vote on the adjustment of transaction fees to better balance user expenses against node rewards (i.e., HLUSD).
NOTE:
Hela is implementing an insurance fund
mainly to reduce the impact of unforeseeable events affecting the Hela ecosystem. Moreover, the fund is also responsible for controlling the inflation of the HELA token.
Will you love to learn more about HeLa ?
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