For cryptocurrencies to be mass adopted should take into account the very nature of what the first cryptocurrency was designed to do, which was to solve the problems of money and manipulation of money. Cryptocurrencies fit the three requirements needed for an instrument to be classified as money. These are:

1) A unit of account

2) A medium of exchange

3) Storage of value

The first two requirements are easily met. The third one is partially satisfied but needs another element to make it complete. That element is “TRUST”!

Cryptocurrencies generate trust from the technology itself but for there to be mass adoption of cryptocurrencies they need to create trust not only from the benefits and of the technology itself but as well generated from the value that it brings, which is infinitely harder to build. Some currencies have tried and have failed in the past, but they didn’t have all of the tools that cryptocurrencies potentially bring to the table. There are three things needed to establish trust with the masses.

1. ZEROS/Value 0.00000001

The number of decimal places has a dramatic psychological effect on how people perceive value on a medium of exchange. In the fiat world, the International Organization for Standardization, better known as the ISO 4217 is used to establish an internationally recognized standard for currencies. By looking at the ISO 4217, we can see that the greatest number of decimals places for a fiat currency is 3 (e.g., 0.001). The standard for cryptocurrencies is 8 places (0.00000001). The paradigm shift is a massive one, one that the masses are not ready for. In theory, eight decimals places mean that cryptocurrencies are perfectly divisible as a medium of exchange. However, theory and reality don’t always mix. This gap between theory and reality, in this case, will continue to slow down the adoption of cryptocurrencies.

Our eyes move in a particular pattern when reading numbers. We move from left to right. Numbers on the left-hand side of the decimal place add the most significant value to us. We recognize identify numbers on the right-hand side as less significant. We tend to overlook anything to the right of the decimal place. However, any change in the value of Cryptocurrencies will happen on the right side of the decimal. This isn’t an area we are conditioned to pay attention to.

Numerous studies of pricing psychology show that numbers and the placement of decimals have a dramatic psychological effect on how the human brain perceives value. This is why at Laccoin we have considered this and decided to use two decimal places to align our token with people’s psychological understanding of a medium of exchange.

2. Volatility / Elasticity Reserve Fund

Figure 1: Annualized Volatility of Currencies

Some individuals in the cryptocurrency universe will hate this section. The second critical issue with cryptocurrencies is its volatility, which wrecks havoc on its value.

A catch 22 comes into play here since, more people adopting cryptocurrency as a medium of exchange leads to greater stability. The volatility seen in the Figure 1 chart is one that would lead to a number of people being apprehensive about converting fiat dollars into cryptocurrencies, because they’re much more volatile than fiat currencies and commodity money in the chart.

A mandate to guarantee the currency’s stability is required for cryptocurrencies to become mass adopted. The word issuer reminds people too much of banks or central bank authorities. Cryptocurrencies also need to have elastic qualities like fiat dollars. Fiat dollars need to adjust to the supply as a means of payment that’s in line with transaction demands. Laccoin will expand our base monetary supply buy purchasing LAC tokens at market rates on the secondary markets. This is one avenue that creates price stability. This also maximizes the rewards for people using Laccoin which achieves a certain amount of price-stability, and serving as a store of value.

Volatility, upside or downside, creates an unstable value for the end user. As previously mentioned, Laccoin will buy tokens in the open market for rewards those rewards will also be distributed to the LAC Union Wealth Fund.

Volatility is a significant concern for cryptocurrencies. It hampers the rate of adoption because It impedes the trust factor. Both upside and downside volatility create unstable value for the end user of LAC tokens. LACCOIN will buy tokens on the open market for use as rewards (See Section 4.3 LAC Union Wealth Fund) for its user base. Reserves will be held in the company. This is achieved by adjusting to the supply of the means of payment, making Laccoin supply elastic.

Laccoin will have a committee comprised of individuals and institutions whose sole objective is price stability for Laccoin. The committee will be able to buy in high frequencies, in during times of market stress but also during times of normalcy. The Elasticity Reserve will also take into account the unsold coins from the public ICO and shift them towards the elasticity reserve. The elasticity reserve will be able to hold up to 25% of total initial supply for liquidity and elasticity demands. These will be held in a separate wallet. Quarterly announcement will notify the public of shrinking or expading token supply. In cases where Laccoin Reserve/Elasticity fund can no longer meet demand or if supply can no longer support the transaction needs of our users, Laccoin sanctioned by the committee can increase the total fixed supply.