The letter from @nadertheory, now on Medium: medium.com/basis-blog/basis-…

We owe our sincere thanks to everyone who supported us in our mission to create a better monetary system. Until next time. basis.io

Congrats to our cofounder and CEO @nadertheory for being named one of @FortuneLedger's 40 Under 40 ! fortune.com/the-ledger-40-un…

Welcoming John Taylor, pioneer of rules-based monetary policy and runner up for Fed Chairman, as our economic advisor! medium.com/basis-blog/basis-…

2/ "Thus we don't think an additional money supply tax is necessary in the short run. In the long run if Basis transitions to using a CPI it could carry the crawling peg over to the extent that the network participants think that there are other reasons to prefer a tax on money"

1/ As it says in the FAQ: "Note that because Basis is expected to be referenced to the dollar initially, it would already be getting an approximate 2% crawling peg in the form of the generally-accepted target USD inflation rate."

Crypto can collect taxes too. Money supply tax I mentioned earlier is the exact same principle. Additionally, because Basis has a single mandate it doesn't need to collect as much (or likely anything at all) in order to get the same level of stability. basis.io/article/what-if-dem…

Hence the benefit of making your central bank algorithmic :) We talk about the Bretton Woods departure here btw. basis.io/article/can-a-syste…

3/ Further, while this can happen early on, it becomes less and less feasible as system matures. USD is a mature example, as discussed in this FAQ. basis.io/article/can-a-syste…

2/ But note that if anyone thinks there is even a chance of bonds being paid there will be a nonzero price for bonds. Means even if Basis is crashed or declining, it can likely still contract. Same benefit applies to sovereign nations with fiscal debt issues.

1/ This is true of all monetary systems, including USD. Difference is that if Basis de-pegs it just becomes bitcoin with extra deflationary mechanism.

The reason I posted the zero growth answer is because it seemed you hadn’t heard about money supply tax, which is a risk premium paid to increase stability similar to US taxes (though we don’t think it’s necessary) You may enjoy just reading the whole faq basis.io/faq

Sure. That should be covered in the crisis of confidence question: basis.io/article/could-a-cri… I think the missing insight is that bond expiration allows the system to continuously recover during a crisis of confidence, arguably better than any existing monetary system could.

Hey QWQiao, thanks for the feedback. These are common misconceptions we get often. I think you’d enjoy reading our FAQ, which addresses the issues directly. One on zero growth + money supply tax, as you mention: basis.io/article/what-if-dem… And Soros attack: basis.io/article/how-would-s…