Why do we need Nemesis DAO in the first place?
NemesisDAO aims to be the go-to reserve currency of the BSC. There’s a number of reasons why this is needed. Simply put, ‘stablecoins’ aren’t as stable as they’re made out to be. Let’s dive a little deeper.
In recent times, dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether. Users are comfortable with transacting using stable coins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is not actually true.. The dollar is controlled by the US government and the Federal Reserve. This means a depreciation of the dollar also means a depreciation of these stablecoins, which is not ideal given they are supposed to be a ‘stable currency’.
And this is where Nemesis DAO comes in. Nemesis DAO aims to address the shortcomings of stablecoins by creating a free-floating reserve currency, NMS, that is backed by a basket of assets. By focusing on supply growth rather than price appreciation, NemesisDAO hopes that NMS can function as a currency that is able to hold its purchasing power regardless of market volatility.