DW20 decentralized stablecoin, which is different from the various types of stablecoins in cryptocurrencies. Its pricing mechanism uses bitcoin and DW20 collateralization and redemption mechanism.
When the price of DW20 is above $1, customers holding Bitcoin can pledge Bitcoin and issue DW20.
When the price of DW20 is lower than $1, customers can pledge DW20 and burning, and get their bitcoins back. (All customers in the market can earn the difference between the collateralization and the redemption, which keeps the price of DW20 stable at $1.)
DW20 does not have an issuer similar to the Federal Reserve, and is distributed in the same way as Bitcoin. As such, it requires a gradual growth process with consensus, just like Bitcoin.
DW20 develops through three stages:
The first stage, the value consensus stage, has a stabilization fund that determines the rise of DW20 from the stage of 0 to 1 dollar.
Stage 2, Automatic market stabilization design for bitcoin and dw20 collateralization and redemption.
Stage 3, becoming the pricing unit of the Bitcoin standard.
Dw20 is the ideal currency for human development.