Such as in France or other countries. What is it, and how does it work?
In: 2
Seignorage doesn’t actually work, but here’s how it’s proposed to:
Token A is $5
Token B is $5
If the price of token B rises to $5.05, then the protocol mints more of token B, which causes it to be sold down to $5
When over minting causes the price of token B to reach $4.95, then the protocol uses the profits of minting and selling token B to buy and burn it, reducing supply and pushing the price up.
This is an “infinity money loop” used in ponzi crypto schemes.
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