ISC DEEP DIVE
(The perspectives articulated in this document represent solely the author’s personal opinions. It is important to clarify that they should not be relied upon as investment advice or perceived as endorsing any form of investment transaction.)
Deep Dive on ISC
Okay. Okay, let’s switch up the style. We’ve hit a point where Superteam bounties are becoming a battlefield. Folks are just rehashing content from websites or whitepapers and then plugging it into ChatGPT. That’s not the name of the game, my friend. We’ve got to enlighten our readers, keep them in the loop about all things Solana. Ask yourself, are people really sifting through those lengthy, uninspired medium articles that are churned out by AI, with zero creativity?
But this right here? Oh, this will be an electrifying rollercoaster ride of entertainment, engagement, and cranium-cracking knowledge! Buckle up, because it’s going to be brimming with the dankest of memes!
So ISC….,
ISC, short for International Stable Currency. Now, if you ask me, the name is a bit of a head scratcher. “Misnomer’’ might be the term I’m looking for, meaning the name doesn’t quite fit the description.
Let me break it down. “International Stable Currency” suggests a currency that’s stable — as in, it holds its value steady over time. But that’s not the case here. ISC isn’t your typical stablecoin. Its value comes from a pool of different assets. So, unless you’re convinced that Gold will never grow in value, thinking of ISC as stable could be misleading.
Perhaps it’s intentionally named that way to spark discussions, to get people to understand that ISC is anything but stable. And I’m all for it. ISC isn’t tied to the USD and doesn’t want to be.
To really sink our teeth into ISC, we first need to fathom why it was created, what its goals are, and what problems it’s trying to solve. Founders don’t whip up something out of thin air for no reason. So, let’s take the plunge!
Alright, let’s tackle the problems ISC is designed to solve:
- Not enough folks get to join the financial party: ISC wants to open up financial services to folks who can’t reach the traditional financial services. You buy ISC, its number goes up naturally ’cause of the rise in value of the assets in the basket.
- Money can’t move freely: ISC aims to dodge rules that keep money from flowing freely into or out of countries. These rules can block folks and businesses from getting into foreign investment opportunities or spending their own bucks. Blockchain makes this possible, allowing easy transfer of money and assets between folks.
- Reserve funds get misused and inherent risks: ISC tackles the issue of those in charge of stablecoins mishandling reserves or being shady about what’s in the reserves. It also aims to fix the problem of stablecoin holders shouldering hidden risks without getting a piece of the potential rewards. Power back to the folks by letting them have a say and elect someone from their own ranks to carry out checks.
Now, onto the objectives:
- ISC’s main goal is to make a stablecoin project that puts its holders (community-owned) first.
- The ISC reserve-system is driven by the community via the governance token, IGT. This makes sure the community’s interests are always first in line and that the ISC Reserves are looked after sensibly and for the long haul.
- The ISC reserve-system’s goals are to keep things stable, be friendly to the community, and get the best returns.
So what is ISC’s USP?
- ISC is built to increase in value over time, tied to the value of a collection of financial assets like commodities, bonds, and stocks. Unlike most stablecoins, ISC isn’t tied to the US Dollar. Anything but stable, talk about a misnomer, huh?
- ISC is constructed on Solana, picked for its top-notch fees and performance. Solana’s low transaction fees, speed, and ability to scale up make it the perfect choice for ISC. Quick and cheap.
So how does ISC Work?
We hope ISC (our special kind of money) will one day be as important as dollars. But to do this, ISC’s value needs to stay steady, and we have to be careful about where we put the ISC money so its value doesn’t change too much.
The ISC community (that’s us!) has a big job. We decide how to use the ISC money in the best way. Here’s what WE want to do:
Goals of the ISC Money System
1. Keep It Steady: ISC money should have a stable value, just like regular money.
2. Friendly to All: The system should be easy for everyone to understand and use.
3. Make More Money: Try to make more ISC money, but not if it makes things too complicated or risky.
We also want to answer this question: “What is the simplest way to use ISC money to keep its value steady while also making more of it?”
Roles in ISC:
Alright, let’s simplify these roles:
1. ISC Issuer: Gives or Takes Back ISC Loans
The ISC Issuer’s job is to hand out and take back ISC Loans to the ISC Reserves. How big each ISC Loan is depends on stuff like how much ISC is out there and its price, and how reliable the ISC Reserve is.
2. ISC Reserves: Keeps Digital Money Market Flowing
The ISC Reserves keeps the Digital Money Market moving by buying and selling ISC when needed. The cash made from each ISC is used to make its ISC Reserve Basket. This system makes sure there’s always enough ISC for folks to buy or sell.
3. ISC Reserves: Makes the ISC Reserve Basket
ISC Reserves works with the Traditional Finance Market to buy and sell the stuff needed to make the ISC Reserve Basket for each ISC out there. The things bought by the ISC Reserves are used to keep the ISC Target Price steady.
ISC Peg Mechanism, Price etc?
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A. ISC Balance Mechanism
- If ISC Price is More than Its Ideal Price (ISC> Ideal Price)
If ISC is too expensive, ISC Issuer gives more ISC to ISC Reserves. Then, ISC Reserves sell some ISC, making the price go down. - If ISC Price is Less than Its Ideal Price (ISC<Ideal Price)
If ISC is too cheap, ISC Issuer takes back some ISC from ISC Reserves. Then, ISC Reserves buy some ISC, making the price go up.
Numba go up nice.
B. Regular Adjustments
Every day, small changes are made to the amount of each asset in the ISC Reserve Basket. This keeps it just right for what the community wants. Community first nice!
C. ISC Reserve Incentive Structure
The ISC Reserve Basket gets a tiny bit smaller each day, which also reduces the needed assets. Extra assets are used to cover costs, like fees and work time. The community checks this system to make sure ISC Reserves get enough money to keep working.
D. ISC Issuer Interest Rate
The ISC Project needs a way to keep it going for a long time. This is why ISC Issuers will charge an interest on ISC Loans, though at first there will be no interest. This means there’s no need to create more IGT (more on this later) to cover costs. Unlike other projects, the ISC Team won’t make more IGT, as it’s not needed.
Governance token of ISC : IGT
What is IGT?
Basically, it’s a token that doesn’t really have a value. Who doesn’t love some valueless governance tokens?
IGT, short for ISC Governance Token, is a token made on the Realms platform. It’s super important to the ISC world and helps decide how ISC’s Reserve is used and guides big choices.
What IGT Voters Can Do (voting Rights):
People holding IGT can vote on things, like
A. what exactly is in the group of assets ISC uses, (the basket)
B. choosing an ISC Community Checker, (to audit)
C. getting back ISC loans from an ISC Reserve, and lots more!
Community members within the IGT DAO can submit proposals to the rest of the community via smart-contracts on the Realms platform. All proposals necessitate a two-thirds supermajority of all casted votes in order to pass.
Tokenomics of IGT:
At present, the intricate mechanics of tokens are being hotly debated. Kudos to the ISC team for constantly riding the crest of innovation and seeking the collective wisdom of the community.
The total token supply for IGT is slated to be a colossal 1 billion tokens (Though, as per a recent tweet, it might even be a never-ending supply).
In an effort to boost the popularity and adoption of ISC far and wide, a generous heap of IGT tokens will be delivered to the doorsteps of ISC holders in the form of an airdrop. Over the first 48 months following the birth of ISC, 5 million IGT tokens will be dropped from the sky onto ISC holders every month. The weight of IGT raining down on users will be measured based on the duration and volume of ISC they’ve been holding on to.
Grants will be generously donated to propel third-party initiatives aimed at bolstering the growth of the ISC ecosystem. The awards for these grants will be determined following the proposal mechanism of IGT, a mechanism that empowers the community with the authority to give a thumbs up or a thumbs down to each grant proposal.
ISC Lab will put its share of the pie to good use to jumpstart various internal endeavours, such as raising capital and recruiting top-notch talent. This is an essential ingredient for long-term success as it allows the ISC Team to lay a robust foundation for the project. To tie the hands of the founding team and other crucial contributors firmly to the wheel of ISC project’s success, the IGT tokens earmarked for them will be unlocked in a span of a long decade (yes you read that right 10 years!)
Burning IGT:
In an attempt to forge a bond of economic incentives between ISC & IGT, 30% of the revenue raked in by the ISC Issuer will be set aside to purchase IGT from the market and then incinerate the bought IGT. The ISC Issuer will fill its coffers by levying an Interest Rate that ranges between 0.0~1.0% on ISC loans handed out to ISC Reserves. Numba go up again!
Wrapping it up
ISC appears to be an intriguing contradiction at first glance. While it plays the part of a stablecoin, its underlying nature is more complex and dynamic. But maybe that’s the point. ISC isn’t your garden-variety stablecoin. It’s not shackled to the USD. It’s an innovative form of currency dancing to its own rhythm, and that’s exactly where its appeal lies.
Let’s not forget about the pivotal role of the IGT, ISC’s governance token. This is where things get even more interesting. Every holder of ISC is rewarded with the supposedly valueless IGT, but therein lies the power — a governance token that gives you a voice and a vote in critical decisions.
The brilliant minds behind ISC have managed to design a mechanism that can maintain price stability. A system that’s community-first and entirely transparent. A system that rewards its loyalists with governance rights. All of this is wrapped in an elegant package, presenting a solution that’s deceptively simple but revolutionary at its core.
When you boil it down, ISC is more than just a stablecoin. It’s a financial revolution in the making, armed with a well thought-out mechanism to maintain price stability, an ethos that puts the community first, and a tokenomic structure that rewards loyalty. So next time you hear ISC, don’t be quick to dismiss it as just another stablecoin. It’s a misfit amongst stablecoins, but it’s also a game-changer.
ISC is here to redefine the rules of the financial game, one community bag-holder at a time.
Help shape the future of ISC, through discussions about Governance Proposals or Price action etc by joining their Telegram Channel https://t.me/TheISCTeam or following ISC Twitter https://twitter.com/TheISCTeam.
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