Proposal Discussion - S&P500 of Crypto as The Unit of Value

Governance General
1

We are creating a crypto-native community-managed algorithmic index meant to act as a unit of account to replace “stable coins.”

We believe that a currency can never achieve the status of World Currency (Universal Currency), but a pure unit of value can. We are building that unit of value: The Unit.

Most defi projects use USD as the unit of value. However, USD is a fiat currency foreign to our space. Should central banks’ currencies continue to be the measure of value?

We ask Aave holders to back the creation of our algorithmic unit of value. It is an essential part of our industry. Right now, USD is the glue that brings all projects together. But should a closed source currency be the focus of our attention? We think it shouldn’t. An algorithmic unit of value that’s not a currency is needed to unite all networks.

Even though there will be a The Unit DAO aiding the development of The Unit, The Unit will be able to be replicated and maintained by everyone.

The Unit is an index of the cryptoverse. Like the S&P 500 of the US stock market, it includes the most significant portion of the crypto market. The initial version of our paper, The Unit paper, outlines how to choose the constituents of The Unit index.

We propose to use 10k AAVE from Aave governance to fund the development of The Unit. Aave governance will then become a seed founder of the project and will own the corresponding allocation.

Benefits to AAVE hodlers:

  1. AAVE holders participating in this proposal will get rewarded with The Unit governance tokens.
  2. In addition, AAVE governance will receive a reward proportional to the corresponding 10k AAVE contribution to The Unit development.
  3. An IDO will launch The Unit in a few weeks.

Join The Unit Community:

Our site: https://theunit.one/

Twitter: https://twitter.com/TheUnit_one

Discord: The Unit

Blog: https://blog.20y.org/

2

Wow, such fascinate, much leader! This is like the S&P500 of the crypto space. It’s a very useful tool, looking forward to see what happens next.

3

@dribai - this is an interesting solution.

While I acknowledge the need for new units of value (and accounting), this “index of the cryptoverse” may be too volatile to replace USD as a unit of accounting.

Have you considered a market-cap weighted index of stablecoins? This seems to be a more reliable unit with less volatility - and a more frequent basis of 1.00.

4

Hi @fig! Thank you so much for your feedback! We have measured volatility for BTC and ETH against The Unit index vs. against USD and found that BTC and ETH are about 20-30 times less volatile when measured against The Unit. As the devaluation of the USD continues, we expect USD prices to become increasingly more distorted and volatile. The Unit is designed to unite all crypto communities under one decentralized unit of value based on verifiable distributed truth (the coin’s relative values). USD is centralized and unverifiable and we want to replace it.