Backed By Commodities

Catallactic aims to build cryptocurrencies that comply with Regression Theorem, and therefore, that capture the intrinsic value of Commodities as underlaying asset. This is why the currencies are called as CryptoCommodities.

We capture and expose the intrinsic value of the underlying commodity by binding a unit of the commodity to a unit of the CryptoCommodity. This binding is enforced by the smart contact processing and users interaction.

Different Commodities, issuers and scopes will have different features, so there is a degree of customization for the dimensions of every CryptoCommodity.

Stable in Value / Non-Fiat

By exposing commodities intrinsic value enables capturing into the token price the marginal utility as perceived by consumers. Differently to fiat stablecoins, where the price is captured from an external market, CryptoCommodities allow a natural price formation performed by a required underlying market of the commodity. This guarantees no relative price distortion other than consumers will.

Commodities backed cryptocurrencies hold different features to a stablecoin and are eligible to participate into the price system of the adopting jurisdiction.

Catallactic advocates for a built-in price formation as a basis to deliver true value decentralization. Stablecoins are centralized because they are pegged to a fiat price formed in international markets.

Decentralized / Interoperable

Catallactic builts on top of the existing DLT networks. Despite more work is need, we consider there is already a foundation that can be used for our purposes.

We think there is not yet any network which is good enough and the overall status of the industry is in beta status and not yet ready for massification. As a consequence we do not adhere to specific chains. Instead, we build for any chains which can process transactionS on top of the EVM, as the more used standard for smart contracts implementation. We consider in future to adapt to other virtual machines and languages.

Catallactic has preference for PoW chains. EVM-enabled Bitcoin L2s able being explored as ideal hosts for Catallactic smart contracts.

We understand that different necessities can require different trust levels. Therefore Catallactic can also be operated on PoS networks with higher traction or number of users.

Finally, Catallactic is thought with interoperability principles in mind, allowing distribution of the liquidity across different chains, as defined by the currency issuer.

Ready to Use for Issuers

Catallactic aims to relief CryptoCommodity issuers of the burden to define principles, acquire know-how, develop tools and design processes to issue tokens backed by the value of their underlying assets. Instead, we create an opinionated system, but maintain configurability, which allows cryptocurrency issuers focusing on their core business.

We deliver a Tokenization Platform which allows adopters to issue and manage their CryptoCommodity without the technical burden.

The outcomes from Catallactic are Open Source and will allow private actors to build additional tools, plugins or know-how that can complement Catallactic deliverables.

Local Competition

Different communities have different monetary requirements and commodities availability. To enable fine tuning of the monetary availability, CryptoCommodities should be issued and applicable at local scope by local actors. This provides a valuable tool for community driven entrepreneurship.

Single currencies as Bitcoin represent a single point of failure and a evident target for scammers and censonship. To deliver censorship resistance and suitAble price formation, CryptoCommodities are thought to be issued by multiple actors and in full competition, relying on the market the price formation task.

A CryptoCommodity algebra provides technical support for real world use cases as merges and acquisitions or CryptoCommodity splits.