Quote from: Maximion on June 18, 2024, 11:42:13 AM

Have you ever thought that in fact collateral approach multiplies a money supply by 2?

I.g. if USD has a value then USDT backed with USD also has value - then it means that both have a value and therefore you have existing USD money supply + newly created USDT money supply

This way I can back USDTT with USDT and say that USDTT is backed with USDT an so on
USDTTT backed with USDTT
USDTTTT backed with USDTTT
USDTTTTT backed with USDTTTT
USDTTTTTT backed with USDTTTT

and with your philosophy they all will have a a value but they wont

This is why 99% of ICO tokens can't retain even its initial capitalization that equals to amount of ETH spent , cause you create another supply - not replace existing one

But in my case we burn one supply and create another in another form and even in another place. I burn 1 ETH and emit 3500 USDx - the total value does not change

USDT backed by USD doesn't mean it generate value out of nowhere brother, it just means your USDT can be exchanged back to USD, and the USD that's used to collateral USDT usually put in reserves.
if the USD used as collateral is not in reserve, when someone tries to exchange back USDT to USD and money is nowhere to be found, the stablecoin will lost its peg.

I think you got your logic wrong here mate.