The Fedz - Print 2 Earn
  • Stability Under Stress: The Fedz's Innovative Approach
  • Improving Upon Previous Attempts
  • Tokenomics
  • FUSD - The Fedz Synthetic Dollar
    • Private Liquidity Pool
      • Example: Private Liquidity Pools & Open Market Liquidity Pools
      • Example: Navigating Market Fluctuations in "The Fedz" Ecosystem
  • sbFUSD, Staking, and Printing FUSD: The Stability Engine of TheFedz
  • The Fedz Elements and Rules
    • How to Join The Fedz
    • The Fedz Game
    • Rule Book
  • The Fedz: A New Approach to Studying Bank Runs in Field Conditions
    • Invitation to Researchers
  • Background on Bank Stability
    • Academic Research and The Fedz Context
      • Kiss et al. (2012) on Deposit Insurance and Observability
      • Demirgüc-Kunt and Detragiache (2002) on Deposit Insurance and Market Discipline
      • Demirgüc-Kunt and Huizinga (2004) on Market Discipline
      • Madies (2006) on Partial Deposit Insurance
      • Schotter and Yorulmazer (2009) on Observability and Insurance
      • Preventing (panic) bank runs Hubert J. Kiss 2022
      • William A. Branch eta al (2022) on Noise and Sunspots in Financial Models
      • Andolfatto (2017) on Preventing Bank Runs
      • Diamond and Dybvig meet money: Are deposit contracts efficient after all? (D. Rivero, H. Rodrıguez)
      • Starr and Yilmaz (2007) on Social Networks
      • Jacklin (1987) on Investment Technology
      • Leveraging Axelrod's (1984) Game Theory for Enhanced Cooperation in The Fedz
    • Key hypothesis & Research Terms
      • Dynamic Reward System (After-Tax) in The Fedz Ecosystem
      • Isolated Decision-Making in The Fedz Ecosystem
      • Decentralized Clearinghouse and Governance in The Fedz Ecosystem
      • Decentralized Bailout in The Fedz Ecosystem
      • Privileged Access and Sustained Stability in The Fedz
    • Contributions to Future Research
    • TBD - ZK for keeping the NFT player choice and deal with it together at the end of the round.
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  • Exclusive Rights of NFT Holders
  • The Incentive to Sustain Stability
  • Long-Term Commitment and System Value
  1. Background on Bank Stability
  2. Key hypothesis & Research Terms

Privileged Access and Sustained Stability in The Fedz

In The Fedz's innovative landscape, the distinction between NFT holders and the broader base of FUSD users underpins the ecosystem's stability and growth. As privileged participants, NFT holders wield exclusive rights and responsibilities beyond the reach of regular FUSD users. This delineation is crucial for understanding how The Fedz maintains a balanced and sustainable environment for its synthetic dollar.

Exclusive Rights of NFT Holders

NFT holders in The Fedz enjoy a unique position that allows them to directly influence the ecosystem's governance and benefit from seigniorage gains. Unlike regular FUSD holders, who can utilize the synthetic dollar for transactions and savings, NFT holders have the added advantage of shaping the game's future through:

  • Governance Participation: NFT holders have a say in crucial ecosystem decisions, from setting reserve ratios to determining acceptable collateral types. This governance role ensures that those vested in the system's success can steer its direction.

  • Seigniorage Gains Access: NFT holders are reserved from participating in seigniorage gains. As the system issues more FUSD and expands, NFT holders can reap the benefits of this expansion, aligning their long-term interests with the health and stability of The Fedz.

The Incentive to Sustain Stability

The exclusive privileges granted to NFT holders create a natural incentive for this group to prioritize the long-term stability and prosperity of The Fedz ecosystem. Understanding that their actions have a direct impact on the value of their holdings and the overall market perception of FUSD, NFT holders are motivated to:

  • Actively Contribute to Stability: NFT holders will likely advocate for policies and actions reinforcing the ecosystem's stability through their participation in governance and strategic decision-making. This includes supporting measures that prevent volatility and ensure the FUSD remains a reliable and trusted synthetic dollar.

  • Step Up in Times of Need: In scenarios where the ecosystem faces challenges, NFT holders have a compelling reason to intervene constructively. Their unique position encourages them to contribute to solutions that avert potential crises, recognizing that the system's resilience directly benefits their investment.

Long-Term Commitment and System Value

The long-term permit NFT holders possess is not merely a token of participation but a critical asset that appreciates as the system thrives. The sustainability of The Fedz and the continuous stability of FUSD compound the value of NFT holdings, incentivizing holders to maintain a vigilant and proactive stance towards ecosystem health.

In essence, the privileged status of NFT holders in The Fedz is a foundational element that ensures the synthetic dollar's stability and viability. By granting them exclusive rights to governance and seigniorage gains, The Fedz aligns individual incentives with collective goals, fostering an environment where strategic decisions benefit all stakeholders. This model showcases a novel approach to digital finance, where the integration of privileged participation and long-term commitment paves the way for sustainable growth and stability.

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Last updated 1 year ago