Boyko DraganovFollow

Abstract

This publication explores the concept of Energy Coin (Volta φ), a permissionless, composable digital currency directly backed by electricity and electricity trading instruments, such as futures and options.

By establishing a blockchain-based currency tied to a tangible and universally required commodity, this system addresses inefficiencies in both the electricity market and traditional payment systems while leveraging distributed ledger primitives like smart contracts and decentralized oracles.

The Energy Coin (Volta φ) system employs algorithmic price stabilisation mechanisms, including hedging strategies and dynamic supply adjustments, to ensure consistent value while mitigating volatility in energy markets. These mechanisms align with the principles of stable-coin design, ensuring liquidity and reducing systemic risks. Energy Coin (Volta φ), via Tokenising Electricity and using a blockchain-based framework for electricity-backed currency and market stabilisation, in it's inception supports machine learning applications, which use electricity as their main energy source, as well promotes financial inclusion by allowing anyone who uses electricity a say with their usage.

This work establishes prior art for an electricity-backed currency, ensuring open innovation while preventing overly broad patents. By incorporating insights from decentralized governance frameworks and leveraging blockchain’s transparency, Energy Coin (Volta φ) positions itself as a pioneering solution for sustainable financial systems. The research integrates insights from online tools and large language models (LLMs), though their use does not confer ownership rights over the resulting systems or applications.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

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