The Index
How Cogito's tracercoins will track progress of humanity
Cogito will initially create a green index that is periodically rebalanced to track the progress of positive progress towards net-zero economy, which will be reflected in the fair value of their respective tracercoin.
GCOIN is pegged on a 1:1 basis to the Green Index, which tracks green indicators reflecting environmental progress, e.g. CO2 emission, green investment, adoption of green energy etc. Since GCOIN has low volatility, it will act as the stablecoin of the system and aims to become a preferred payment currency on Cardano.
The index will be constructed as weighted average of a reasonably large set of quantitative indicators, with data coming from trusted third-party sources such as the World Bank, OECD, United Nations etc, which are free of protocol-level dependencies.
Based on our work doing quantitative modeling and intensive simulation of the data from the past 40 years, we have reasonable confidence that the index should trend upwards at different velocities. Additionally, the nature of the index should ensure that it is reasonably stable without large, sudden changes (except in case of genuinely long-tail events like a world war, an asteroid hitting Earth, or a sudden epochal engineering breakthrough). While some of the constituents of the index will only be measurable, say, quarterly or annually, the algorithm will also include an interpolation and smoothing equation that allows it to have an estimated value each day so that the index’s value changes relatively continuously day to day, rather than having a huge jump when new data is released. A global committee of cross-disciplinary experts will be assembled to manage the components and weightings of the constituents of the index each year, and will be subject to community governance for major changes. The construction of the index will have maximum transparency since the data is publicly available and the model is open-source and can be verified at any time.
Finally, one of the most important value-adds of Cogito is that the tracercoins provide an alternative solution to the Oracle problem of blockchains, at least in certain aspects. Our protocol is connected to both on-chain and off-chain networks so that it can fetch data from one or multiple external sources and bring the data on-chain via the creation and tracking of indices.
Last modified 1mo ago