[mNovak]

> To be in balance, the Stablecoin must provide real utility to the Outside World that transcends the Stablecoin/Insurer construct. Specifically:

> 1. There must be a transaction tax for real utility provided by the Stablecoin.

Don't all major reserve-based algorithmic stablecoins charge some kind of minting/redemption fee, to reward the risk taken on by reserve holders? And that makes this whole argument somewhat moot, since it's not a purely closed construct like they're describing. Though perhaps this line of reasoning (equivocating to other financial constructs) could lead to fee pricing equations required for some notion of stability.

[charcircuit]

Luna stakers were paid in transaction fees in the network which consisted Luna and the stable coins on terra such as UST

[HelloNurse]

Minting consists of spending money (hardware, energy, human work...) to obtain some cryptocurrency units, basically the same as buying them from someone and an influx of actual money into the crypto scheme (which might or might not compensate the risk takers as delineated in the article).