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USDL Stablecoin of LGCY Network blockchain
USDL is the gas token for LGCY Network. Instead of having bandwidth and energy, the LGCY Network will use USDL as gas. 1 USDL will be a credit for $1 worth of transaction/server fees. USDL is a stable coin. That means that for people who stake, or run nodes with LGCY tokens they will earn payouts in a safe, stable coin rather than in a volatile token.
The many benefits of digital currencies include faster payments, lower transaction costs and the ability to make payments at any time.
Digital currencies help companies to reduce and eliminate risks by using them as a transport currency and as a way of settling intercompany transactions without paying extortionate fees
Using cryptocurrencies reduces reliance on middleman (such as banks), offering secure, instant transactions, mitigating the possibility of credit card fraud and bringing smart contracts, escrow and machine payment capabilities.
Stablecoins are designed to provide a stable digital asset linked to the value of fiat currencies like the dollar or the euro. In 2020, the overall market valuation of all Stablecoins was 5.4 billion.
They allow users to cheaply and rapidly transfer value around the globe while maintaining price stability.
There are basically two philosophies behind how stablecoins should be made stable
An asset can be worth whatever the issuer deems it to be worth. It is worth $1 because everyone believes it is worth $1.
We all know, however, that most stablecoins are not exactly pegged 1 to 1 with USD as there are always small price fluctuations. Why is that? These coins rely quite a bit on arbitration between assets and exchanges to keep the price equal to $1.
Currently, it works because it works, but essentially it is unbacked and risky for a long-term hold.
Our new and innovative philosophy to create our stablecoin is a revolutionary concept, which won’t rely on people’s sentiment to remain stable.
LGCY Network will use USDL as gas for transactions on our blockchain. This stablecoin will be backed by the number of transactions $1 costs.
This model both provides a stable and valuable backing to our stable coin/gas while also giving LGCY Network a scalability over time.