We started with a white paper that proposed a stable, decentralized cryptocurrency called Basis that had the potential to fulfill this vision.
Basis remains stable by incentivizing traders to buy and sell Basis in response to changes in demand. These incentives are set up through regular, on-chain auctions of “bond” and “share” tokens, which serve to adjust Basis supply. Because the Basis ecosystem would take some time to develop, we knew we’d need to initially play the role of trader ourselves, which would be capital-intensive. As such, after publishing our white paper, we raised a $133M round of financing. This allowed us to involve a diverse set of investors who we felt could add a lot of value to the project and enabled us to build a large stabilization fund to bootstrap the system. We then assembled an outstanding team and set our sights on launching the system.
Unfortunately, having to apply US securities regulation to the system had a serious negative impact on our ability to launch Basis.