Hi everyone,
I have an idea for a new cryptocurrency that is pegged to the price of gold. Although successful pegs to the US dollar have been achieved, why not peg a coin to something stable that has been used for thousands of years as a store of value and main money system. If a cryptocurrency or token is backed by gold there is counter party risk (If the gold backing the token, is stolen from the vaults for example or if for some reason the powers that be confiscate it) but if it is pegged to the price of gold there is no gold to confiscate or steal. I have decided that the brains out there would form a community and invent a cryptocurrency pegged to gold please. I would if I had programming and mathematical skills.
My thoughts:
If the price of the gold pegged currency is trading lower than the price of gold, decrease the supply of coins by suspending mining of proof of work and enticing people to send tokens /coins to a burn address by rewarding the same wallet that sent coins to the burn address by returning their principal plus the principal times a % of that principal maybe even double the principal, to be awarded from half of the transaction fees and maybe also from the mining of block rewards when they resume if the price rises above the gold price.
If the price is high increase the supply by resuming regular block mining.
So if supply = 100 000 000 coins(for example) and each coin is worth $700 and the price of gold is $1250
decrease supply by suspending mining of coins except for the mining of transactions.
If the price still doesn't rise reward senders of tokens to addresses that surely no one knows the private key to like for example 1Gxxxxxxxxxxxxxxxxxxxxxxxxxy996WT or this real world one 1CounterpartyXXXXXXXXXXXXXXXUWLpVr and as a reward the system should somehow send coins that amount to the coins that were burned + reward (maybe a % of principal or more) from half of transaction fees or mined blocks over a period of time.
If the price rises above the gold price, resume the mining for block rewards too increase the supply.
Some mechanism for voting on whether to increase supply or decrease it would be required
My understanding of programming could improve a lot so please leave the source code for implementation of such a coin in the comment section ---below---.
