About Deflationary Xchange Output
DXO can only be created (Forged) by burning BTC and other deflationary coins/tokens. Why deflationary? If you have an inflationary system, you could literally forge as many coins as you wanted. What you produce out of inflationary systems doesn’t have any intrinsic value. In crypto Inflationary tokens exist to create fake yield. So even if you were to burn the inflation that was created, you still created something without having to have tangible market or transactional activity.
Why would I ever burn BTC to create DXO?
To finally have a means of exchange that is instantly verifiable, non-inflationary, and completely decentralized
To give BTC investors a yield
To make BTC transactional for all transactions, even a cup of coffee 🙂
DXO will only ever be Forged by deflationary assets. And it will only give a yield if people are using it. If there is no market activity, there is no yield.
We envision DXO being the reserve currency of Defi. You know where it came from. It’s Forged by burning deflationary coins. You know its verified. Why hold a traditional stable that doesn’t provide yield? And while DXO may not be stable, its benefits outnumber holding a stable coin. DXO is also completely decentralized. No addresses can be blocked from transactions.