Standard Reserve's On-Chain Currency System Adapts to ETH Flow

The Standard Reserve is experimenting with an on-chain currency system that adapts to ETH flow. When funds enter, the system increases token issuance and accumulates reserves; when funds leave, it reduces issuance, buys back tokens, and destroys them.

Token holders can become bankers by obtaining NFTs called 'Charters,' which are akin to 'bank licenses.' These Charters grant access to new token issuances based on the number of branches they own. The system uses a Hook from Uniswap v4 to track fund flows and adjust issuance accordingly.

The Standard Reserve plans to establish an ETH-STANDARD trading pool, where users can buy or sell tokens based on market demand. This pool will help determine the net ETH flow, which in turn affects token issuance. The system has a hard supply cap of 1 billion tokens and a planned supply structure that includes genesis liquidity, future issuance budget, and earnings for bankers.