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Eventually they plan to move to a version that is tied to some CPI (basket of goods) rather than one currency. DAI is really borrowed against collateral (right

Eventually they plan to move to a version that is tied to some CPI (basket of goods) rather than one currency. DAI is really borrowed against collateral (right now it's Ethereum, but there are plans for muliple forms of collateral), and these collateralized debt positions are public info. If the underlying collateral's value falls too far, the position is automatically liquidated and the underlying collateral is sold to pay for the debt before returning the remainder to the borrower. Those two mechanisms are the only means of DAI creation, which means that it can never get in an undercollateralized position without everyone knowing. Everything about it is transparent, there are no hidden beneficial owners really. Their names may not be known, but all financial positions are known.

tomjakubowski 8y ago
> Eventually they plan to move to a version that is tied to some CPI (basket of goods) rather than one currency. Is the idea that someone will guarantee me some basket of consumer goods (or some amount of another currency which can readily be exchanged for said basket) if I give them 1 DAI?
- rthomas6 8y ago
  Not really. It's just a way of measuring value more removed from any one nation's currency. You take the price, in DAI, of a bunch of historically stable priced goods. Bread, tires, shoes, etc. Measure the averaged normalized variance in price over time for these goods in DAI. Then tune the economic incentives to make those variances stay at as close to zero as possible. https://en.wikipedia.org/wiki/Consumer_price_index https://en.wikipedia.org/wiki/Consumer_price_index