INK

This NFT represents an idea. A stablecoin that is linked to an inflation index. Here in Africa, our currencies still have high volatility and are exposed to periods of high inflation. This makes it difficult for people to save and accumulate wealth as inflation erodes a lot of the value of cash. So if there was a stablecoin that pegged to the local currency and a consumer price index, then people could benefit. This inflation linked currency would be a better store of value. Also it allows African countries to have their own currency and not have to rely on a foreign dollar. In the long run we want an African economy with stable inflation, but until then we would benefit from an inflation linked stablecoin.

To make this token a reality, a sophisticated portfolio of assets would need to be constructed. If inflation linked bonds are available, they would be included along with a mix of equity, property and other assets that offer an inflation hedge. The trade off to this investment strategy would be a lack of liquidity and so everyone wouldn’t be able to cash out their token simultaneously. But if a cautious fraction reserve policy was implemented then the fund would be able to simultaneously grow at inflation as well as have enough liquidity to repurchase the token if it ever drops below the inflation linked price. The name of this idea is INK, short for Inflation Linked Token.