GCA Coin Valuation & Stability Mechanism

The value of 1 GCA Coin is pegged to 1 Kenyan Shilling (KES) under the proposed stablecoin model. Here’s the breakdown:

GCA Coin Valuation & Stability Mechanism

1. Stablecoin Design:
   • Backed 1:1 by KES reserves held in a CBK-regulated bank (e.g., Cooperative Bank).
   • Example: If GCA issues 10M coins, there must be KES 10M in reserve.
2. Redemption Guarantee:
   • Farmers/buyers can cash out GCA Coins for KES anytime via:
     • M-Pesa integration (1 GCA = 1 KES, minus 0.5% fee).
     • Cooperative bank branches (zero fees for withdrawals <10,000 coins).
3. Price Stability Tools:
   • Arbitrage Bots: Automatically buy/sell GCA on Stellar DEX to maintain peg.
   • Liquidity Pool: 20M GCA + 20M KES locked (e.g., on StellarX).

Why 1 GCA = 1 KES?

• Simplicity: Easy for farmers to understand (no volatility like Bitcoin).
• Trust: Full transparency via monthly audits by PwC Kenya.
• Adoption: Aligns with Kenya’s cash-based economy and M-Pesa dominance.

Example Transactions

FAQ

Q: Can the peg change?
A: Only via DAO vote (e.g., if inflation exceeds 10%, adjust to 1 GCA = 1.05 KES).

Q: How to earn GCA Coins?

• Sell GCA-certified coffee (10 coins/100kg).
• Stake coins in governance (5% annual yield).

Q: Is this legal?
A: Yes, compliant as a utility token (not a security) under Kenya’s Capital Markets Act.

Need the contract code for the KES peg mechanism?

solidity

// Simplified Stablecoin Contract (Stellar-compatible)
function mintGCA(uint256 kesDeposit) external {
    require(reserveBank.transferFrom(msg.sender, kesDeposit)); 
    _mint(msg.sender, kesDeposit); // 1:1 mint
}

function redeemGCA(uint256 amount) external {
    _burn(msg.sender, amount);
    reserveBank.transfer(msg.sender, amount * 0.995); // 0.5% fee
}

For farmers: Dial *7–# to check GCA/KES rates in real-time!*

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