All decentralized blockchains will need a native stablecoin

Cryptocurrency ecosystems are finally discussing something I've predicted months back.

Earlier this year, I wrote an article on how every decentralized blockchain ought to individually function on a dual-token economy, where there's a governance asset whose price actions should mirror revenue growth through free market trading and a stablecoin that's managed by smart contracts and decentralized consensus.

The article, published 6 months ago, emphasized the importance of a blockchain to have a native stablecoin.

For the past couple days, I've actively ran into several X posts talking about Hyperliquid’s stablecoin proposals.

For those who don't know, Hyperliquid is a high- performant L1 blockchain with a native dex for perpetual futures and spot trading.

Recently, established companies such as Paxos have been battling with other crypto-native players, through proposals submitted for Hyperliquid DAO(validators) votes, for a chance to launch a stablecoin that will be adopted by the Hyperliquid protocol as the native option for the network with the ticker $USDH.

This event has sparked several conversations on the crypto corner of X and most importantly, has made other ecosystems realize just how important “having a native stablecoin” is perceived, especially since the passing of the Genius ACT in the United States.

Oxmert, a prominent figure within the Solana ecosystem, took to X to explain why Solana needs to have a native stablecoin which feeds yield to Solana users.

This is the type of conversations that will happen more frequently as the decentralized blockchain ecosystem realizes that part of what will bring stability to DeFi across different ecosystems will be having a native stablecoin.

Stablecoins should replace validator rewards in a way that makes native assets deflationary.

Incentives ought to be built around a debt instrument that holds relative value stability, in order to reduce the volatility of native governance and economic assets.

Thank you for reading!

Posted Using INLEO