Idea: A gold pegged token that can be mint/burn like DAI stable coin. It’s should be part of core Tezos protocol, including the gold price oracle.
- Mint tzGold by collateralize XTZ, similar to minting DAI with ETH.
- Only XTZ, no other tokens including BTC or ETH in initial version.
- Initially price is denominated in USD (until USD is global reserve)
- Incentive Liquidity for XTZ and tzGold pairs.
The whole crypto DeFi depends on USD. Even if it’s algo stable coin, end of the day when USD collapse, entire crypto will collapse along with it. satoshi wants a financial system that detached from centralised systems.
Gold is lindy, fairly distributed, decentralised, global, permissionless and low inflation money. Only Tezos can bring programmability to real digital gold. Gold is store of value and medium of exchange for 1000s of years.
There is no fully decentralised and permissionless gold available in entire crypto. Tether gold is not censorship resistance. Most users prefer to store decent percent of wealth in Gold. Mcap of global ETF gold $220Bn. Even if 10% comes to tezos(because of it’s soundness), tezos can be No#1 in Defi. Global gold payments and settlements will skyrocket.
What it is for Tezos Ecosystem
Playing ETH playbook in DeFi won’t help tezos. We need to take tezos DeFi to truly global. tzGold is the way.
Currently there is no way to store real gold digitally. When tezos provides the way, lot of users will buy tezos first and convert into digital gold. This will take tezos to top defi chain.
Even i prefer to take profit in gold than useless USD. This will create whole new system around gold.
When people start takes the profit in gold, we can see Up-only for XTZ price. Because the demand for XTZ wont slow down. High priced XTZ will bring positive feedback loop.
Nice to have
Implement all the tezos features like privacy, tickets etc to the tzGold.
Create a ultrasound digital gold in tezos core. Build DeFi around it. Make Tezos top 5 chain. Get ready for post USD global money.
tzGold/XTZ might be the real USD/ETH killer.
Here is better explaination in twitter thread https://twitter.com/YazhisaiSivanat/status/1653094514524028928