Frankencoin
Crypto Overview
Overview
Frankencoin (ZCHF) is a Swiss Franc-pegged cryptocurrency designed to maintain a stable value relative to the Swiss Franc through a novel minting mechanism. The protocol allows users to mint ZCHF by posting collateral in the form of other cryptocurrencies.
Purpose and Utility
The primary purpose of Frankencoin is to serve as a stable medium of exchange pegged to the Swiss Franc. The system employs a unique price stability mechanism where users can mint ZCHF by providing collateral worth more than the minted amount. The protocol includes challenge periods and liquidation mechanisms to maintain the peg.
Business Model
The business model revolves around providing a decentralized stablecoin solution. The protocol generates revenue through minting fees and liquidation penalties, which are distributed to ZCHF holders. The core functionality does not involve interest-bearing loans or gambling mechanisms.
Real-World Adoption
The project is in its early stages with limited adoption. Currently, the primary use case is as a Swiss Franc-pegged stablecoin for trading and value transfer. The development team maintains regular updates to the protocol.
Token Distribution
The token distribution appears to be fairly decentralized, with no significant concentration among founders or early investors. The protocol is designed to be community-governed, with token holders having voting rights on system parameters.
Crypto Impact
To assign a comfort level investing in Frankencoin from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Frankencoin.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.