Alchemint Standards Whitepaper

The biggest barrier that hinders Bitcoins and other digital currency becoming the most widely
accepted payment methods is the huge price fluctuation of Bitcoins and other digital currency. At the
same time, the large amount of decentralized projects use the token that is issued by themselves
having huge price fluctuation as the tool that transfers value under its ecosystem, and it leads to that
those applications cannot be accepted by the market. Under this condition, the encrypted digital
currency that maintains the stable purchasing power, which also refers to the stablecoin is needed to
handle these problems.

There are three existing kinds of modes for the schemes to handle the problems of the stablecoins are
the deposit model of legal tenders, the mode of the right of coinage and the centralization model of
digital asset. However, facing the key problem of the supply of the stablecoins and the long-acting
stabilization mechanism, the three kinds of modes and all the related projects of the stablecoins have
not established the completed mechanisms to handle the problems. Thus, Alchemint uses the forth
kind of mode in an innovative way, which refers to the mixed mode, as the scheme which aims to
handle the problems of the stablecoins in a comprehensive way and aims to help the stablecoins to
develop in medium-term and in long term.

In the early stage of the development of the block chain, Alchemint mainly use the deposit model of
the legal tender to enable the commercial institutions to issue the stablecoins in order to meet the
needs of its own ecosystem and to satisfy the demand of the applications for users. With the
continuous improvement and maturity of the technology of the block chain, the traditional assets
would be reflected on the block chain. At the same time, the individual information such as people’s
credit and big data of people’s behaviors that cannot be owned privately would become one part of
the individual assets and be reserved on the block chains based on the block chain technology and
the ecosystem. In the next three to five years, it might occur a great trend that assets are transferred
to tokens and it is predicted that over 10% of the global GDP would be reserved on the block chain.
Under this condition, the stablecoins that are issued by the individuals through the collateralization
model of digital assets would replace the stable currency that is issued through the collateralization
model of legal tender step by step and then it would become the important approach to issue the

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Alchemint Standards Whitepaper

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