Crypto startup Oneiro has recently revealed the launch of a stablecoin backed by tech venture capital firm COSIMO Ventures, which invested over $15 million in the company’s untethered stablecoin ndau.
ndau, according to a press release shared with CryptoGlobe, has been optimized to serve as a long-term store of value. It was initially created by the ndau Collective, a group of 20 experts from leading institutions including MIT, Columbia University, Goldman Sachs, and New York University.
Per the press release, ndau addresses shortcomings in typical stablecoins like USDT and TUSD, which are tethered to the US dollar. Fiat currencies like this one are subjected to the influence of institutions that aren’t prioritizing long-term holding, and as such make decisions that see them lose value over time.
ndau, on the other hand, is reportedly governed by a “Blockchain Policy Council (BPC)” which consists of a group of digital delegates that are continuously elected by the cryptocurrency’s holders. These are accountable for the interests of its entire ecosystem.
Jim Kent, the CEO of Oneiro, noted that other cryptocurrencies managed to achieve an “impressive rate of growth,” but have seen their growth hindered by their volatility, which scared away institutional and retail investors. He added:
In order to move towards acceptance of a decentralized digital monetary system, we must address the problems of governance, stability, and dependability that limit wider acceptance of cryptocurrencies, especially for a long-term store of value. We are thrilled to have built a truly resilient, global digital currency that will address these issues.
The press release added that while most stablecoins hold their value against fiat currencies, their ability to increase in value over time is limited. As such, they aren’t an optional token to hold in the long run.
The BPC’s monetary policy is said to foster a pro-growth environment, which helps ndau’s value grow while avoiding volatility. The cryptocurrency has economic incentives built into it that encourage holder interactions to stabilize its price, and reward long-term holders.
When demand warrants, ndau’s monetary policy is set to automatically release new tokens for sale, while it’s also set to remove excess ndau in circulation during market downturns, through“algorithmic mechanisms and market makers.”
Robert Frasca, a managing partner at COSIMO Venture, added:
We surveyed the landscape of cryptocurrencies, and we invested in Oneiro because the ndau coin is leveraging blockchain technology to create a really groundbreaking buoyant currency.
ndau’s current market cap is at $40 million, before being launched. It’s mainnet is set to launch in the “next few weeks.”