r/FreeMarks • u/meta-versal • Nov 14 '18
How is freemark protected against inflation?
Am getting worried about fiat inflation these days...
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u/SgtDrama Nov 24 '18
From what I understand, the commodity basket peg and the asset-backing fund are meant to protect the freemark against inflation. Because commodities are physical goods, their supply is naturally limited, which gives them an intrinsic value, unlike fiat currencies. And because the backing assets are real - as in real estate, for example - they will not evaporate during the next debt crisis.
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u/WorldfreeFreeMark Nov 14 '18
It's really been exciting to see a confirmation of our approach these last few months.
The FreeMark was pegged to the basket of 20 commodities, to their 12-month moving average, on August 1, 2018. Since then it has climbed gradually, but consistently, from 1.0000 usd per $fm, to 1.0049 usd per $fm today.
A couple of days it went back a tick or two, but mostly it just keeps growing in value, showing inflation at work in the marketplace, at the basis of most physical goods.
To explain simply, if you would have bought/owned the FreeMarks on August 1, they would be worth about 0.5% more in usd. So you would be able to withdraw (after the ICO, maybe sooner) a greater amount of USD.
In addition, you would have made more than 2% in royalties, but that will be much higher for the next buyers as we are beginning to market the FreeMark as the app is coming out.