FAQ

Frequently asked questions:

What Is Anchor?

Anchor is a two-token, algorithmic stablecoin pegged to the sustainable and predictable growth trend of the global economy. Anchor offers token users long-term price stability, preservation of purchasing power, and protection against inflation.

Where Can I Purchase Anchor Tokens (ANCT)?

Through Anchor Wallet - you can choose to purchase ANCT with any fiat currency, BTC, ETH, USDC or USDT. If you are purchasing ANCT with fiat, you can do it via credit/debit card or wire transfer.
Liquid Exchange - available trading pairs are ANCT/USD and BTC/ANCT.
IDEX Exchange - available trading pair is ANCT/ETH.

What problem is Anchor aiming to solve?

Most of the major fiat currencies are declining in value and losing purchasing power year after year. Cryptocurrencies are highly volatile with daily fluctuations that do not offer practical use as a daily payment currency. Stablecoins offer the greatest potential to drive widespread adoption for digital currencies as a stable and global medium of exchange. Currently, the top 10 stablecoins are fiat-backed, centralized coins representing digitized versions of real world assets. Tokenizing fiats, such as the USD, makes stablecoins such as Tether, TrueUSD, Gemini, and others susceptible to the same vulnerabilities, market fluctuations, inflation, and depreciation in value as traditional fiat currencies. Whereas, data from the World Bank shows that since 1960, global GDP has expanded from $1.3trn to $80.7trn. World economic growth has increased at an average rate of 2.5% annually for the past 25 years despite market fluctuations within each country, thus providing a reliable measure for value. By developing an algorithmically calculated financial index based on global GDP, Anchor is aiming to create the first reliable financial standard and measure of value since the International Monetary Fund’s (IMF) Special Drawing Rights (SDR). (The SDR is exclusive only to IMF member countries and based on a basket of five currencies, whereas the MMU is decentralized, inclusive, and based on a basket of 10 of the strongest economies, based on their GDP and participation in the global economy) As an elastic, non-collateralized stablecoin, Anchor offers the market an alternative to fiat-pegged stablecoins. Anchor's tokenomics system is designed to create an intrinsically stable ecosystem through the MMU and a two-token model to ensure stability regardless of market fluctuations.

What benefits does Anchor have as an algorithmic stablecoin over fiat-backed stablecoins?

As an elastic, non-collateralized stablecoin, Anchor is scalable and objective, offering the market an alternative to fiat-pegged stablecoins. Anchor's tokenomics system is designed to create an intrinsically stable ecosystem through the MMU and a two-token model to ensure stability regardless of market fluctuations. Anchor’s flexible currency supply is regulated by Anchor’s tokenomics, with the principal component being the Contraction/Expansion mechanism through which Anchor’s system will programmatically buy and sell tokens in order to maintain the Anchor Token’s (ANCT) price in equilibrium with the MMU. Price stability is not only about stabilizing the unit-of-account, but also stabilizing the currency’s store-of-value. The MMU’s algorithm is constantly growing in sophistication, accumulating more data and macroeconomic indicators over time to reflect the real growth of the global economy with even more accuracy. As a result, Anchor will be aligned with an ever more precise index, with the goal of creating the most stable and predictable value peg in the world.

Who will benefit from being an early adopter of Anchor?

Purchasing Anchor’s tokens has several key benefits. The Anchor cryptocurrency offers transparency, stability, and trust. It is secure, easy to understand, and resilient to crypto-market volatility. The Anchor preserves the value of your holdings over time and ensures that whatever you have earned during your lifetime does not lose value.

As a dependable hedge against crypto volatility and inflation, Anchor offers a solution to investors, traders, banks, hedge funds, and other investment institutions.

Crypto Traders: Traders who are highly involved in the crypto ecosystem will benefit from investment in the Anchor stablecoin as a way to safeguard their value. Offering the crypto market a transparent and scalable alternative to Tether (USDT), and other stablecoins.
Blockchain Companies: Blockchain companies that conducted raises in ETH or other cryptocurrencies can invest in Anchor’s system in order to guard against market fluctuations. By investing in Anchor, these projects can preserve the funds needed to continue to develop their products and platforms on their proposed timelines without fear of losses due to crypto market volatility.
Traditional and Retail Investors: Beyond the crypto economy, Anchor offers a stable store of value not found in any other market. The nature of fiat currencies, such as USD, is that they depreciate in value over time due to inflation. Because Anchor’s value is derived from an algorithm that reflects the growth of the global economy, Anchor will be the first truly stable currency and store of value that will only appreciate in value regardless of daily market fluctuations and shocks due to political instability or natural disasters.
Strategic Partners: Potential partners, such as those involved with crypto loans, real-time paychecks, and affiliate programs, will benefit from special discounts, in order to incentivize early participation.

How is Anchor pegged to the global economy?

Anchor is a two-token, non-flationary stablecoin pegged to an algorithmic index, the Monetary Measurement Unit (MMU), that reflects the long-term growth of the global economy. The Monetary Measurement Unit (MMU) is a financial index calculated by an algorithm that takes into account the GDP of more than 190 countries from the last 25 years, further stabilized with forex indicators from a basket of currencies and premium sovereign bond yields from 10 of the world's strongest economies. Anchor’s MMU basket is dynamic in that each year it will contain currencies from 10 of the strongest national economies based on annual GDP and participation in the global economy. At the beginning of each fiscal year, the system will re-evaluate and update the basket to ensure that the 10 strongest and most reliable national currencies are consistently represented to bring stability and real value to the system. The basket is designed to ensure the strongest currencies are consistently represented. The evaluation is completely objective and based on each country’s performance and participation each year, not related to a political agenda or affiliation.

How is Monetary Measurement Unit (MMU) Calculated?

The Monetary Measurement Unit (MMU) indexes Anchor to the stable and predictable growth trend of the global economy. Factoring in daily fluctuating macroeconomic data from more than 190 countries, the MMU’s calculations also include the FX Indicator and the MMU Premium.

The FX Indicator indexes currencies from 10 of the world’s strongest economies based on their participation in the world economy (> 1%). The FX indicator uses international market exchange rates for the most relevant currencies in the global economy and enables the daily nominal expression of the MMU.
The MMU Premium calculates the amount of growth that can be expected based on sovereign bond yields of AAA-rated countries, as well as the average inflation rates. This Premium has been approximately 0.4% annually for the last 25 years.

The MMU is calculated via the application of a proprietary algorithm conceived by Anchor Founder and CEO Daniel Popa and further developed by Anchor’s team of PhD economists, including macroeconomics researcher and professor Dr. Zoran Grubisić, and quantitative finance expert Aleksandar Manić.

What data is the Monetary Measurement Unit (MMU) based on?

The Monetary Measurement Unit (MMU) is an algorithm based on the growth of the global economy with validated data from the International Monetary Fund (IMF), the World Bank, and other official sources of more than 190 countries over the last 25 years. The MMU is further stabilized with FX indicators and premium sovereign bond yields from 10 of the world’s strongest economies.

What benefits does the MMU offer as a peg of value?

The MMU is the most accurate available representation of the real growth of the global economy, which has a sustainable and predictable growth trend of 2.5% on average annually over the last 25 years. Leveraging the MMU as a financial index and peg of value enables Anchor to maintain long-term price stability, protecting the stable currency from inflation and preserving its purchasing power, while hedging market volatility and fluctuations. The MMU is a financial index with the potential to be the next financial standard since gold and the International Monetary Fund’s Special Drawing Right. It is a reliable cornerstone for price stability resilient to market volatility and fluctuations that any crypto or traditional currency can adopt as a stable and predictable peg of value.

How often is the MMU updated?

The MMU’s algorithm is constantly growing in sophistication, accumulating more data and macroeconomic indicators over time to reflect the real growth of the global economy with even more accuracy. As a result, Anchor will be aligned with an ever more precise index, with the goal of creating the most stable and predictable value peg in the world.

How does Anchor ensure long-term price stability?

With the intent to be inherently stable, Anchor has designed a system of stabilizing mechanisms, known as Anchor’s Six Pillar Safety Net. This Six Pillar Safety Net works to prevent volatility and fluctuation within the Anchor System, and include the following:

Global Economy Pillar. The price of ANCT is determined by the MMU algorithm, which is based on the stable growth of the global economy that has grown an average of 2.5% annually over the last 25 years.
Daily Adjustment Pillar. The MMU is adjusted regularly based on the FX indicator, which includes the exchange rates of 10 countries that have the largest share in global GDP (participation of more than 1%).
Algorithm Pillar. When inflation occurs, the system will automatically re-adjust the value accordingly to maintain ANCT’s price stability.
Two-Token Model. Leveraging a burn-mint model to stabilize the system and ensure equilibrium regardless of market fluctuations.
Distribution Pillar. The capital in both cryptocurrency and fiat that enters the Anchor System will be invested into a range of stable capital assets, such as sovereign debt.
Re-distribution Pillar. The treasury bonds and assets acquired via the Distribution Pillar generate interest that the system receives periodically. This interest is then reinvested into more such assets without having to issue new ANCT, which ensures greater token stability, and acts as a defense against inflation and devaluation.

What is Anchor’s two-token system?

Anchor is designed as a two-token model composed of Anchor Tokens (ANCT), that serve as the main currency/payment tokens; and Dock Tokens (DOCT), the utility tokens that stabilize the currency ensuring ANCT remains pegged to the MMU regardless of external fluctuations. Anchor’s flexible currency supply is regulated by Anchor’s tokenomics, with the principal component being the Contraction/Expansion mechanism through which Anchor’s system programmatically buys and sells ANCT and DOCT. The system will mint or burn ANCT tokens in response to price deviations of ANCT relative to the MMU, using DOCT as a utility token to incentivise participants to contract or expand the supply of ANCT in the system.

What is the Anchor Token (ANCT)?

Anchor Tokens (ANCT) serve as the main currency/payment tokens and mirror the value of global economic growth by being pegged to the Monetary Measurement Unit (MMU). The MMU is a financial index calculated by an algorithm comprised of various global macroeconomic indicators to reflect the sustainable and predictable growth trend of the global economy.

What is Anchor’s Dock Token (DOCT)?

Dock Tokens (DOCT) are the utility tokens that stabilize Anchor’s currency (ANCT) ensuring that ANCT remains pegged to the MMU regardless of external fluctuations. DOCT cannot be used as a means of payment or transferred from one token holder to another. The sole function of DOCT is to grant the holder access to participate in the Anchor System and to be converted into ANCT during an Expansion Phase. DOCT can only be exchanged during Contraction and Expansion phases on the Anchor platform for ANCT, not traded on exchanges. DOCT holders can access the platform to initiate the redemption process for ANCT that they burned during Contraction Phases as per Anchor’s Terms and Conditions. Anchor system participants need to accept the Terms and Conditions the first time they access the platforma nd from thereon the system will perform all DOCT-to-ANCT conversions automatically when conditions are met for an Expansion Phase. DOCT owners will benefit from incentives, such as discounts available during Contraction Phase Auctions (CPAs).

How do Anchor’s Contraction and Expansion Phases work to maintain price stability?

Anchor’s flexible currency supply is regulated by Anchor’s tokenomics, with the principal component being the Contraction/Expansion mechanism through which Anchor’s system will programmatically buy and sell tokens in order to maintain ANCT’s price in equilibrium with the MMU. A Contraction Phase is triggered when ANCT’s price falls below the value of the MMU due to a decrease in demand. When this occurs, an open auction with a reward system will be initiated to incentivize token holders to exchange their ANCT for DOCT in order to stabilize the currency and maintain equilibrium between ANCT’s price and the value of the MMU. An Expansion Phase is triggered when the exchange rate for the Anchor token rises above the MMU due to an increase in demand causing a decrease in supply. If equilibrium is still not met, ANCT will be airdropped to holders until its price returns to the value of the MMU.

How often will Contraction and Expansion phases occur?

Contraction and Expansion Phases are not scheduled as they are direct responses to real, dynamic market fluctuations. Our tokenomics model takes into account both unfavorable and favorable market conditions to ensure stability and that the Anchor Token remains pegged to the MMU.

How will the price of Anchor remain pegged to the MMU, if it varies across different crypto exchanges?

The price of Anchor will always be aligned to the MMU on the Anchor blockchain (system) and Anchor Wallet holders will always be able to buy Anchors for the price of the MMU (plus transaction fees). The price of Anchor Tokens on the exchanges may vary and deviate from the price of Anchor Tokens on the Anchor system, i.e. the value of the MMU. The fluctuation of the price of Anchor Tokens across exchanges is one of the data sources that Validators take into account when deciding whether to trigger an Expansion or Contraction Phase, which may happen when the deviation in price on the exchanges relative to the MMU and the price of Anchor Tokens on Anchor’s system are so significant that they signal the need for expanding or contracting the supply of Anchor tokens in circulation. This process will have the effect of aligning the price of Anchor Tokens on the exchanges to its price on the Anchor system, i.e. the MMU.

How are macroeconomic indicators for Anchor and the MMU’s algorithm validated?

The Anchor System will be governed by up to 21 established institutions, enterprises, and organizations across multiple industries and geographies with competing priorities to minimize risk of collusion, with one slot reserved for parent company Anchor, AG. Anchor’s governance model protects its token holders by guaranteeing the integrity of Anchor’s price and its stability in maintaining equilibrium with the MMU, as well as the value of the MMU reflecting the accurate growth trend of the global economy. Validators will have access to economic input from more than 190 countries starting from 1994. Validators will monitor official macroeconomic data feeds and offer regular price updates to the blockchain. The Anchor system’s oracle will collate price data from Validators and update the system. All Validators will have access to view updates their counterparts have suggested, and upvote or downvote the recommendation. When the majority of votes are fulfilled, the Anchor System takes action accordingly.

How do you become a Validator?

Being a Validator is a time-intensive technical responsibility that requires a mature operational structure with professional integrity and extensive experience in running, monitoring, managing and maintaining data center infrastructure and security. Anchor has begun discussions with potential Validators from established institutions, enterprises, and organizations across multiple industries and geographies. Validators are partners and early adopters who believe in Anchor’s vision, are passionate about our mission, and have the capabilities to facilitate in Anchor’s growth and development. Anchor will commence phased onboarding of Validators and implement governance models commencing in Q1 2020.

Does Anchor have an auditor?

Transparency and regular auditing represent an integral part of Anchor’s business model. Anchor takes compliance and safeguarding token users’ funds very seriously and are in the process of hiring an experienced CFO, as well as selecting a Board of Directors to oversee funds. One of the checks and balances we will require include a dual signature authorization for bank transactions, among other criteria to ensure all funds are safeguarded. Anchor is planning to launch on global crypto exchanges in Q3 and Q4 of 2019. *Please note, neither ANCT nor DOCT represent a debt, derivative or equity claim against Anchor AG, or any legal entity.