Kowala is a stablecoin protocol that was created to use technology to maintain the price of the token artificially. The idea is that the Kowala protocol will mint or burn the token supply in accord with the user demand to keep the prices always stable. Now, this company has finally released the Alpha version of its mainnet, which will be called Andromeda.
While Andromeda is the mainnet, Kowala will also release soon the beta version of Boötes. With the launch of Boötes, the company will finally start its kUSD stablecoin mining and will begin to trade kUSD on crypto exchanges.
The CEO of the company, Eiland Glover, has affirmed that Andromeda is the start of a new era of stablecoins and that the users will not have to put their faith in cash reserves anymore (like they already with Tether) or even governments or any kind of centralized authority.
According to Glover, the decentralized stablecoin created by Kowala will be the most trustless and anti-volatility project on the crypto market and will offer freedom for people, especially the ones living in inflationary economies like Venezuela, for instance.
How Does The Kowala Protocol Work?
The Kowala Protocol will act using a two-token system. While the main token is the kUSD, which will run on Boötes, mUSD will be important as it will be the minting token of the company. mUSD miners will be able to stake nodes and get block rewards in kUSD.
The system will be proof of ownership and you need a minimum of 30,000 mCoins to get kUSD from mining. With the new mainnet, the investors will be able to receive their mUSD mining tokens.
Andromeda is the culmination of many months of effort by the core team of developers of the company. They have created a smart contract system to keep the volatility away and have tuned it to work properly and be fast, so that the token will be really useful for people and that it has the necessary stability to work as intended when the Boötes network finally launches.
Glover believes that, with the distribution of mCoins, the company is getting closer to realize the original vision of the Satoshi white paper and to bring new levels of decentralization to stablecoin assets that can allow users of kUSD to finally leave centralization behind.
This way, Glover believes, the node operators will have a real ownership of their money (just like the users) and they will not have their money locked away in vaults controlled by other people anymore.