The TEA Token: A Special Type of Stablecoin

1. Collateralized stablecoins

  • USDT (Tether)
  • USDC (Coinbase & Circle)
  • GUSD (Gemini US Dollar)

2. Over-collateralized stablecoins

  • DAI (Maker DAO)
  • MIM (Magic Internet Money)
  • sUSD (Synthetix)

3. Algorithmic stablecoins

  • UST (Luna)

TEA Project’s TEA Token: A Stablecoin Not Pegged to the Dollar

  • Users can stake tea to mining nodes to earn rewards.
  • Users can purchase TApp tokens to invest in promising TApps.
  • TEA token is burned when a prospective miner buys a CML for their mining node.
  • Consumers spend TEA tokens to use TApps.
  • TEA is used for gas in the TEA ecosystem.

How Does TEA’s Peg to Computational Resources Affect Its Price?

  • If the price of TEA/USD goes down, then both consumers and developers (who need to pay miners) could purchase TEA in the open market to secure “cheap” TEA for future computing expenses.
  • There is the possibility for actual arbitrage between different platforms executing the same computing task.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store