In 2014, Robert Sams (Robert Sams), the Manager of a hedge Fund, specializing in the policies of Central banks, published the article A Note on Cryptocurrency Stabilisation: Seigniorage Shares, describe the bold concept of crypto-currencies tied to Fiat, but unlike the existing projects do not require security reserves in other assets.
For several years, the concept of Seigniorage Shares reproducing decentralized mechanisms for the printing of money by Central banks, it was just a witty idea. Those wishing to take up its implementation was not until the middle of 2017 for this work did not take the Australian startup Havven.
The Mechanism Havven
Havven is a decentralized payment network where users are charged a payment fee, which, in turn, are distributed among the holders of secured tokens. These are the Commission and produce the value of the collateral token. In the system two kinds of tokens: havven – security token; and nomin – actually stablein. The value provided by Nomin token havven, because the only way to issue nomin Deposit havven in a smart contract. The amount of the Deposit greater than the amount emitted by nomin, thus the system becomes redundant collateralization and has resistance to sharp price spikes.
The initial value of the system is established by means of licensee. Because the transaction does not yet exist, participants tocancel predict the future value of the network Havven, taking the risk, but relying on future gains. It is assumed that the collateral token will grow in value with the growth of the network and amount of payment of commissions.
To ensure the stability of the system uses a distributed Havven bail. The value of this collateral, expressed in tokens havven is determined by expected future income from transaction commissions generated by the payment network. This means that the value of the token havven is not purely speculative – it is influenced by the incomes from commissions, to be distributed among the holders of havven (they are the same issuers nomin). The authors make two conclusions:
The system simultaneously provided the collateral value.
The system is decentralized.
Havven comparing competing projects, its founder Kane Warwick (Warwick Kain) acknowledged that their mechanism is easier and safer, however, argues that systems that use as collateral of USD or gold that are vulnerable because of their centralization.
In order to issue nomin, you must create a Deposit of havven on a smart contract. Thus, the user performs operations with stankoinkom, get proof that the system is in excess of collateralization. As both the token represents tokens ERC-20, the system is completely transparent and protected from censorship and possible confiscation of the bail.
The viability of the network
To maintain effective networks and user confidence need a high volume of transactions. This clearly follows from the fact that the value of the network provided with tokens havven, intrinsic value which in turn depends on the flow of commissions generated by the network. At the same time, the market price havven set by the market. As an example from real life, you can lead a centralized payment network American Express. The illustration shows the network AmEx:
In practice, the AmEx network is not that other, as a form of centralized digital currency as money within the network do not move. This is a private records database reflecting each debit and credit. In other words, payment network completely relies on buyers and sellers who trust her, and the value of the entire network are collateralizable transaction contained in the system.
AmEx annually conducts a transaction in the amount of $1000 billion in network cost of $85 billion. A good indicator, but this is not the limit, because AmEX serves mainly network-type customer – the business. However, it is possible to estimate these indicators of potential Havven. In order for the network was worth $1 billion, it requires an annual transaction volume of $10 billion. Thus, the ratio of the value network and the amount of commissions will be much higher, as the fee Havven significantly lower than that of AmEx.
Tocancel and free distribution of tokens
The idea Havven, at least on paper, looks interesting, but the market is not always guided by rational considerations. However, the regret is quite aggressive criticism of competitors, first and foremost, MakerDAO with stankoinkom DAI. Still, the team, confident in the success of your project, as a rule, pays more attention to his detailed description, than attacks on competitors.
Warwick focuses on the really existing problem: if you the rising value of collateral to encourage users to issue the DAI increased, in the case of a long bearish trend, when the need to stabilise maximum, it falls Vice versa. This topic has long been discussed in the main subreddit Maker, and there are several proposals for its solution, but the General consensus is that this is completely unexplored territory, and you want to gain experience in practice. In the end, the Maker has the form of DAO, in which the holders MKR detect and can go on to change the risk parameters.
The aggressive tone of Warwick drove usually very cautious of the founder of Maker rune Christensen (Christensen Rune) for a sharp rebuke. In response, Christensen pointed out the main problem of the concept of Seigniorage Shares, as stabilini collateral which is faith in its stability. According to him, this system will not be able to resist in the case of «run on the Bank». A large number of users trying to cash out their stabilini at the same time, create a «death spiral» when the system emits, in response to volatile collateral tokens, but because of the run on the Bank, their price tends to zero, the market loses faith in the fundamental mechanism of the system, and as a result, the cost stablein also tends to zero.
However, the presale tokens havven (HAV), held in August 2017, has already brought the company $25 million. The main outdoor tocancel, during which the sale will feature 60-million-HAV (total generated 100 million HAV), will be held from 28 February to 6 March 2018. Investors who register in January, depending on the amount, will receive discounts up to 30%, though their tokens, they can only get within 12 months, in tranches of 25% every three months. These tokens will be provided initial collateralization system.
For wider dissemination Havven in the ecosystem the company intends to distribute for free 2 million HAV among users who register before 23:59 (PST) on February 14. To obtain tokens needed to join the Telegram channel Havven and fill out a short application on the company website.