Tian

Summary:
A new token protocol that continuously increases supply but keeps the total value that holders have stable and slowly growing
Published: 6/6/21
Update: 6/10/21
Author: GiverofMemory
Maintainer: GiverofMemory
Creator: CaptivatingCatz
License: Site License
Categories: See Footer
See Also: Tian design
Page: (upload / browse / edit / print)
Discussion: Tian-Talk
Archive: Archive.is, Archive.org
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Tian logo; thanks BuddySteeze!

Tian realistic logo; thanks BuddySteeze!

Tian

Ti天an

Ticker: Rta

Tian is a formulaic stablecoin token (as opposed to algorithmic stablecoin) where creation of new tokens is pegged to the amount of DeFi token trading fees that are redistributed to all holders (ie: trading volume).

It is independent of any currency or commodity and does does not need to be pegged to any real world assets. The value can fluctuate verses other property, but over time it should become more stable than any currency out there.

"The value can go up or down but the proportion you own stays the same" (*)

Use Case: Hedging against other assets' price volatility. However, unlike Tether, the price can and likely will rise versus the dollar. Tian should resist subjection to market trends like those seen by leading cryptocurrencies, by adjusting the number of new coins minted based on volume traded. Typically volume is high when price is high, and in these periods Tian mints more to keep price stable. Typically when price is low volume is low, and Tian mints less during this time to keep prices propped up. Tian can also be very easily traded, and as a standard token it might have very high merchant acceptance rate. Tian can replace fiat checking deposits, savings deposits - and even commodities like gold - in order to hedge against National Currency inflation and, at the same time, Crypto Market volatility.

Purpose

The basic premise of Tian Token is the embodiment of a solution to the "Inflation Paradox" in Economics. Expansion of the money supply is necessary to support a growing economy, however this has always been at the expense of those holding the currency. The amount of new money created devalues the currency holders savings. One common workaround is investing; because some of that newly created money is going into new ventures (aka Stonks), and thus currency holders can convert some of their currency into ownership of these ventures thus gaining a return that can be similar to the expansion of the money supply. Another workaround is using the currency to buy commodities that have a lower or fixed emission like gold. Both of these solutions require trading your currency for something else, and then converting it back into currency to spend - therefore these solutions are not ideal.

What if we could balance the amount of new money created with the amount of money that is going to the current token holders? If this were possible then people would not need to use workarounds to maintain their value while also the economy can grow from an expanding money supply. Buyers of a currency want the price to be low [1] [2]. Thus we can keep the price low by expanding the money supply, while also proportionally increasing the number of tokens that holders have; using DeFi trading fees.

Tian is that solution. Tian only creates new money (besides initial distribution) when the current holders of the currency get paid that much money. It does this through the common DeFi principle of trading fees and proportional redistribution of the fees among current coin holders.

In essence Tian offloads the cost of inflation from the token holders, and onto the people trading the coin instead. With a low enough fee, this should not be detrimental to trading volumes.

Tokenomics Example

See also: Scaling Emission to Volume, Total Supply

Redistribution to Holders

aka: Fee Distribution Matching

Say we have a very low 0.1% fee on every transaction (typical DeFi is 5-10%; actually we are planning on lowering the fee to 0.069420% {for the memes [3] [4] and the lower cost to send} so these numbers will be slightly different) which is about the percentage that a Centralized Exchange takes per trade [5] and an order of magnitude cheaper than Credit or Debit Merchant Fees [6]. (Aside: If a token can reliably be thought to be able to achieve 100% Daily Volume to Marketcap ratio, then this fee could be lowered down to 0.01%)

We reach 1 trillion tokens in "year 2" so everyone on the planet can have 125 coins on average.

If the daily volume traded is 100 billion tokens on average (10% volume to marketcap ratio) for a year, then 36.5 billion tokens would be both redistributed amongst all holders via the transaction fees, and also 36.5 billion new tokens created as fresh new supply that are owned by no one, and that anyone can buy.

This achieves an economically favorable 3.65% yearly new coin creation rate which will stimulate the economy, while also keeping the current coin holders' value constant. No downsides there. Actually upon further thought, current coin holders' value actually grows, as thier new proportion of the total marketcap keeps growing a tiny bit from this process, it doesn't just stay constant.

We will distribute the fees and add coins to the supply every month instead of more often in order to minimize gas fees. I would like to do it every 9 months to reduce fees to the protocol even further (doesn't effect fees or coins to users), but I know people have bills due monthly so they could really use the dividends that often. If the protocol really can't afford to do it monthly, we could imitate stock dividends and pay out 4 times a year which is quarterly, so every 3 months.

Initial Distribution Data

See also Initial Distribution Method, Initial Distribution Principles, Total Supply

Initial Distribution Data Spreadsheet

"Initial distribution" means how do we get tokens into people's hands in a way that is fair and spread out to many holders and try to prevent too much concentration, aka whales. To do this, we need to release some coins at regular intervals so that there is a long period of time where people can get coins at a good value. This way not only the early adopters benefit, but everyone has an even playing field.

We will use the constant emission method of 1,000,000 coins per minute (a nod to original Dogecoin emission) plus an additional 21 million per day (a nod to Satoshi) to achieve initial distribution. This is a total of 1,461,000,000 tokens minted per day therefore 44,468,237,170.229 per month (using a year as 365.242194416666 days). For monthly payouts it should be done every 2629743.8 seconds which translates into roughly every 876581 blocks on Binance Smart Chain.

Grin and Dogecoin use the constant emission method of initial distribution and have achieved prices that are pretty immune to crashes. Using this method, in just 4 years we fall below the current US Dollar printing rate [7], and just 14 years before we go below the long term average US dollar printing rate. In other words, in just a few short years we will be more stable than Tether. For example, if you are staking your tether for 5% a year, or even 10%; since the Fed is printing 20% per year [8], you are loosing your stored value. In contrast to Tether which can fluctuate wildly based on Federal Reserve whims, Tian always becomes more stable over time. So just a few years of inflation and then we will be more stable than the Dollar. Hang in there and Dollar Cost Average in! Wu Wei.

Using this "constant emission" method for initial distribution, it means that within about 20-30 years most of the highest growth period in terms of percentage gains in the circulating supply per year is completed. This coincides well with the adoption curve of new technologies, as seen below. This means that the majority of the token growth happens during the exponential phase of the adoption curve. After that, the majority of the supply growth will occur due to Fee Distribution Matching, which is non-inflationary and non-diluting.


Most disruptive technologies are adopted within 20-30 years

Most emission growth occurs within 20-30 years

Why not just use constant emission and forget creating new coins?

Constant emission is great, but in just a decade or two there are no longer enough coins produced to expand the economy. The US maintains an average emission rate of 7%, and in just 14 years Tian will drop below that. So in order to keep the economy going strong, we need more coin creation than constant emission can provide. The great news is, with our fee and redistribution, creating more coins beyond initial distribution does not dilute holders holdings at all, and actually slowly increases it!

Name

Tian is a Chinese philosophical concept for "Heaven" or "Order of the Cosmos" and I think that fits with the token purpose. The ticker RTA (pronounced "Rita") is an Indian philosophical principle [9] [10] [11] meaning "Natural Order". Tian (Ti天an) is also similar to the word "Titan", namely one named Themis, the Greek goddess of Divine Order and Natural Law.

Ti in chinese means "to suggest" and An means "peace" so when broken up as Ti-an it can mean "to suggest peace".

In terms of the name of a unit of the currency, it is one Tian or 5 Tian. The currency is broken down with 3 decimal places, so 1 Tian will be 1.000 Tian. The smallest unit of the currency is a Di, pronounced "Dee". So 1 Tian is 1000 Di. Two years after launch everyone on the planet could own 125 Tian on average which is 125,000 Di.

On the Amber [12] logo: "in Syria the women make the whorls of their spindles of this substance, and give it the name of harpax [from ἁρπάζω, "to drag"] from the circumstance that it attracts leaves towards it, chaff, and the light fringe of tissues" -Pliny the Elder. I wonder if Tian will attract fiat?

Scaling Emission with Trading Volume

See also: Tokenomics

In Tian we decide to scale the new token creation with trading volume. Once a month, all the volume of trading is multiplied by the fee of 0.1% in our case (actually we are lowering this to 0.069420%), and that fee in tokens is distributed proportionally to all the current holders of tokens. If the daily volume is 10% of the marketcap on average, after a year a person's token holdings will increase by 3.65%. For every token redistrubuted like this, there is an equivalent token created fresh, owned by noone, and put up for sale on the swap. This means that printing new tokens does not dilute the ownership share of current holders.

Bitcoin will move to fees instead of new coin creation, how is Tian better?

Tian is different not better. In bitcoin currently coin holders are experiencing money printing, so their share of the circulating supply that they own keeps getting smaller. Bitcoin holders relative proportion of the total marketcap keeps getting reduced. This is good for the economy since new holders can enter the market adding to the robustness of the currency. Once bitcoin hits 21 million coins, then it stops generating new coins altogether. This is bad for the economy since no new coins are created, however current coin holders benefit since their proportion of the circulating supply always remains constant from there on.

Tian has to dilute shares like Bitcoin does to achieve a fair and therefore robust Initial Distribution to resist pump and dumps. However Tian keeps increasing the circulating supply to keep the economy stimulated while not diluting shares in the long run, unlike Bitcoin.

Why create new tokens at all?

We want to create new tokens that anyone can buy to give new people the opportunity to own tokens thus improving the distribution of the coins over time. The bigger the number of unique people that hold coins, the more resistant it is to pump and dumps and the more stable the price.

How do we determine how many tokens to make new?

There are many criteria that could be used to determine how many new tokens to create. With an algorithmic stablecoin like Tether (USDT), they create new tokens based on the price of the coin; to maintain a stable value relative to another currency, the US Dollar. Thus, maintaining a certain price per token is a good way to tune how many new coins are created. However there are downsides to this. Firstly the true value of USD is not constant, currently in 2021 we are experiencing over 20% increase of USD supply which may cause very high inflation. Secondly backing a token with a governmental commodity like this opens the doors for regulation, the US government is forcing Tether to have a dollar in reserve for each tether minted. This means that if the Tether corporation ever lacks funds for whatever reason, the Token may suffer severe consequences.

With Tian we look to a wholly decentralized way to maintain constant value. Instead of trying to maintain a stable price relative to an arbitrary currency or commodity, we instead try to maintain utilization ratio.

How much a currency is used (the Trading Volume) is perhaps the perfect gauge for how many shares or units of a currency are needed. So with Tian, the higher the trading volume, the more tokens are minted.

Initial Distribution

See also: Initial Distribution Data

Our method for expanding the money supply as a function of volume is great, but we need a good initial distribution of coins to make our network robust. Imagine if only a couple users bought the first trillion tokens and then maintained thier duopoly for the life of the coin. Lets discuss some factors that make for a good initial distribution.

Time

Many people will love our token design. However it will take time for the word to get around and for everyone that wants to hear about it, to hear about it. Therefore our initial distribution needs to be spread out over time. This is probably one of the hardest aspects for investors to fathom as it brings great uncertainty. However if we make the time interval small between each release of coin batches newly for sale, say daily or even every minute, (however we will settle on once a month to minimize gas fees to the protocol, user won't be affected) then people can quickly gauge how price is affected and come to peace with it. It is interesting that people are fine with projects that release 1 quadrillion coins all at once, but coins like dogecoin that release 5 billion a year they have a problem with (and it would take dogecoin 200,000 years to get to 1 quadrillion coins). In reality dogecoin's method improves price stability because the distribution is spread out more temporally and therefore spatially.

Investment

Airdrops are great at getting coins in as many hands as possible, but these people have not committed anything to gain the coins, and as the saying goes, easy come - easy go. People that receive coins via airdrop are unlikely to hold for the long term and contribute to coin stability. We need to have people contribute either time, effort, or other things of value in order to attain coins.

Please use Dollar Cost Averaging because the initial distribution is going to be happening over a long period of time. If the price seems too high, it probably is and you should wait to invest. When the coin launches if you assume the value is 1 billion coins for $1, then you won't get ripped off.

Stability

Initial distribution should be stable so that there aren't pumps and dumps. If you launch all the tokens at the beginning, that is not stable and will cause rhythmic pump and dumps as far as the eye can see. If you release a batch of new coins every minute, then everyone can get coins without causing pumps and dumps. You can make money on Tian if you are patient. If the price goes up, sell. If the price goes down, buy. Patience is a virtue when trading a stablecoin. Wu Wei.

Our Method

So we will create a million coins a minute, forever. This gives us a nice predictable rate and investors can "Dollar Cost Average" in ownership over time to achieve a very stable value of their holdings. In terms of percentage of increase of the money supply over time, it keeps decreasing - and pretty rapidly. In just 3 years we would already be going below the current US Dollar M2 Emission (Dollar creation per year) at 25%. In just 14 years we will be below the long term average Dollar Creation per year at 7%. The great thing is unlike the dollar, there can never be periods of hyper inflation since this rate predictably goes down every year. Eventually over many years the inflation rate will approach 0% and our redistribution fee would help keep the economy from contracting, like what happens in a deflationary scenario. It will take thousands of years to achieve 1 quadrillion coins, so basically until we are living in a new galaxy there will be less coins than typical DeFi Projects! So estimate the price accordingly.

Max Purchase

Theoretically one whale, if they are fast, could time their buys and buy up all of the coins the instant they get dropped every month. To prevent this, we are instituting a max purchase that is equal to 1/(golden ratio squared) which is around 38.1966% of the outstanding Tian. The golden ratio squared is actually more often found in nature than the golden ratio itself [13]. Whales can still buy up 90%, or even 99% or more of the outstanding Tian; it will just cost them more to do so. To buy 90% of the coins would take 5 separate buys, to buy 99% would take a total of 10 buys, to buy 99.9% would take a total of 15 buys, etc; and each buy costs more than the last because each buy raises the price of the token.

Our Total Initial Supply

When crunching numbers to anticipate what the value of a token at launch should be (if you were to buy tokens before we achieve significant trading volumes that will increase the tokens you hold), you can look at our total supply relative to a certain timescale. In 2 years we hit 1 trillion tokens emitted. In 20 years we hit 10 trillion tokens. In 200 years we hit 100 trillion tokens. In 2000 years we hit 1 quadrillion tokens. So for all intents and purposes our max supply is 1 quadrillion tokens. But in terms of a reasonable holding period of 20 years, we have a max supply of roughly 10 trillion tokens. Therefore if we somehow achieved a marketcap of $10 trillion within 20 years, then our target value could be $1 per token, although in practice we should be happy to hit 1/1000th of that ($10 billion marketcap) so $0.001 in 20 years if we are sucessful. Upon launch in the 2 year timescale we will be at 1 trillion tokens circulating supply. If we assume a reasonable $100,000 marketcap, that would put us at a value of $0.0000001 per coin so 10 million coins per dollar. My strong suggestion is for the short term to buy whenever the price goes below this, and sell whenever the price goes above this. Trading like this will also help stabilize our price!


2 years: 1 trillion tokens || 20 years: 10 trillion tokens || 200 years: 100 trillion tokens || 2000 years: 1 quadrillion tokens

























Hosts

Tian will likely start on Binance Smart Chain (BSC) as a BEP20 token to start since the fees are so low. We will also plan to launch on Cardano and maybe even Ethereum over time. There is no reason why we can't be on every blockchain that would support us, we would just need a new ticker for each project and probably a new name. So we could have Tian BNB (RTABN), Tian ADA (RTADA) etc.

Backing

Since we are not algorithmically pegged to any certain commodity or basket of commodities, our value will float based on our trading volume which dictates new coin creation - which should insulate us from the broader market - but in practice will also probably float based the values of the coins we are traded against (our liquidity in DeFi terms). When we launch, our only trading pair will likely be BNB/RTA. This will mean that our price will be stable in terms of how much BNB we are worth, however BNB is not stable compared to the USD or even BTC. So eventually we will need a robust basket of trading pairs that ideally have price action that are all divergent from eachother. Algorithmic stablecoins that are pegged to various commodities like gold and stocks and futures and many other things would ideally be used as RTA trading pairs in order to stabilize our price against the worlds assets. Also stablecoins pegged to world currencies would also be great, if not those actual currencies themselves as liquidity as well. Also having liquidity of blockchain assets that themselves try to achieve formulaic stability like Grin, Dogecoin, Monero, Bitflate, and our own projects including CollectBit would also be ideal.

Risks

As much as we believe in Tian, the concepts behind Tian have never been done before and are thus quite experimental. That said, the monetary theories behind Tian are, I would argue, less risky than those behind Bitcoin which is based on deflation which actually has been tried in the past and has never worked out. Basically deflation is the symptom of a Monetary Policy that cannot keep up with the economy [14]. Tian is a non-centralized, formulaically adjustable monetary policy which is set in stone.

  1. Minting adjustment based on volume has the potential to actually exacerbate price moves once in a while, especially strong dumping with high volume. Typically and over the long period, price stagnation comes with low volume and thus our supply will reduce during these periods and the price will be propped up. Also typically high volume corresponds to high interest in an asset so we mint more during this time keeping price attractive (low) for new entrants. However sometimes but usually temporarily, especially during whale price manipulation, the price falls on high volume, and in these periods we will mint more which can multiply price swings.
  2. Token wrapping has a possibility to reduce the effectiveness of our fees. People trading Tian don't want to have to deal with fees for trading so they might create a wrapped version of Tian without fees. However these wrapped tokens would not benefit from the fee redistribution back to holders, yet they would bear the costs of monetary expansion. So while in some niche use cases people might want to wrap Tian, I believe the majority will be unwrapped so holders are getting fee reflection of other peoples transactions back into their account.

Links

Inflation and security: Bitflate [15]

Other pages that link to Tian:

Attachments to Tian:

Password to edit: nature