The CYCLE token has been presented as a revolutionary type of stable coin where 1 CYCLE token pegs one trillion cycles (known as a “T”) to one Swiss franc (CHF).
I’m very confused as to how this makes economic sense. It seems well understood that the price of computation gets cheaper over time. Why would one T always be worth one CHF? It seems to me that Moore’s Law, etc, would drive the price of computation down over time and that CYCLE tokens would get grossly overpriced for the fixed amount of computation that they represent.
What am I missing?
Are CYCLE tokens not pegged to computation?
Am I not understanding the definition of what a single ‘cycle’ is?
How does a CYCLE token remain economically valid over time and achieve its ‘stablecoin’ status?
Please help me understand.