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A price stable cryptocurrency would allow for more mass adoption outside of mere trading and speculation. Bitcoin has provided part of the solution, but it has become more of a commodity akin to gold rather than a medium of exchange or unit of account. We propose Terra, an alternative to Bitcoin which expands and contracts in supply to stabilize unit price. Similar to how fiat currencies are supported by sovereign taxation, Terra is supported by taxation on the value created on its network. Superior to fiat currencies, Terra operates under a decentralized guarantee of solvency, eliminating risks of currency failures and Soros attacks. Finally, Terra engages in decentralized fiscal spending, ensuring that economic growth is distributed equitably via democratic consensus rather than via a politicized system of elected delegates.

The need for a decentralized, price-stable protocol of money is massive in both fiat and blockchain economies. If such a protocol succeeds, then it will have an enormous impact and prove to be the best use case for cryptocurrencies in the real world.


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