Melmint: Trustless Stable Cryptocurrency

Abstract

Decentralized cryptocurrencies have gathered increasing interest in the past few years, raising hopes of a new era of non-sovereign electronic money. Unfortunately, cryptocurrencies perform poorly as actual money due to their unacceptably volatile purchasing power. "Stablecoins" aiming to reduce this volatility, on the other hand, tend to peg to an external currency like the US dollar, gravely weakening the decentralization that makes cryptocurrencies so attractive.