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Monetary Policy
What's a hybrid monetary policy and why do we need it?
We are hitting record levels for expansion of the money supply all over the world and inflation is no ghost story anymore, but a harsh reality. The worldwide pandemic, continual global political issues, and new economic challenges are causing struggles in every part of our planet. Money supply is increasing faster than ever before, causing higher prices and bringing us to the edge of major currency implosions.
Bitcoin and FIAT have opposing monetary policies, but both are backed by thin air. MONSTA has the monetary policy of Bitcoin but it has reserve assets to back it up.
Cake Monster allows for inflation hedging by combining a self-renewable deflationary monetary policy backed by ever-increasing asset reserves.
Anyone with a background in finance understands the importance of a foundational currency having supply elasticity and the need for assets that break market correlation. MONSTA is the asset to do both of these things simultaneously.
Unlike Bitcoin and USD, MONSTA operates off of an elastic deflationary model that is backed by an ever growing reserve of non-correlated assets like BNB or CAKE. Negative shocks to the market cause mass panic selling which has wreaked havoc on the crypto markets by causing massive losses and extreme volatility.
We have to understand that the lack of elasticity in deflationary models like Bitcoin makes it impossible to grow any sophisticated economy on top of it. MONSTA has the ability to absorb shocks to the markets, which give it the ability to rebound higher.
In the event of a negative shock to the market, MONSTA will enter a period of hyper deflation, while simultaneously entering a period of hyper accumulation to back the token as short sighted panic sellers abandon their holdings.
In essence, market shocks will speed up MONSTA scarcity while the price floor of its non-correlated assets is accelerated against it. This model makes it possible that the price of MONSTA will rebound higher than it was before the shock in the short to intermediate term, breaking market correlation.
Hybrid Monetary Policy System vs Inflationary and Deflationary Model
Hybrid Monetary Policy
Inflationary Monetary Policy
Deflationary Monetary Policy
Last modified 4d ago
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