The inflation benchmark Frax price index will be published on the Partisia blockchain

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On Thursday, the developer Frax Finance Algorithmic stablecoin, Announcing that it will launch the Frax Price Index or FPI on the Partisia blockchain. The benchmark will be linked to its stable currency and will serve as a competitor to the standard consumer price index (CPI). Although the latter is almost a universal indicator of inflation, skeptics claim that its method does not take into account items such as housing prices, university tuition, and healthcare. All of these have risen significantly in the United States in the past decade.

Partisia Blockchain co-founder Brian Gallagher (Brian Gallagher) elaborated on the development process:

Together with the advanced privacy oracle of the Partisia blockchain, various crowdsourced population purchase data is converted into a trustworthy index, enabling FPI to break the opaque method used to report inflation data so far.

In a previous interview with Cointelegraph, Frax co-founder Sam Kazemian, Explain that FPI stablecoins will have a staking componentTherefore, in addition to implementing the core functions of the CPI standard, FPI will also generate an interest rate of return, thereby improving the value proposition of the stablecoin linked to it. Kazemian said: “With FPI, you can basically think of it as a commitment to pegging monetary policy.”

According to CoinGecko’s data, Frax is currently the seventh largest stablecoin with a market capitalization of US$1.35 billion. Unlike fiat currency stablecoins, Algorithmic stablecoin Balance the funds on the blockchain through smart contracts and supply and demand, instead of relying on reserves.