The Frankencoin Association

How connected is the Frankencoin Association to Frankencoin, and how much control does it have? Is the Frankencoin truly decentralized? This article clarifies the relationship between the two.

True Decentralization

The Frankencoin smart contract is decentralized and allows anyone to mint new ZCHF. However, the mere existence of a revolutionizing smart contract itself is not enough to make a big change in the stablecoin market. In order to create a lasting impact, this idea needs to be known to a wide audience.

For the Frankencoin to succeed, more than one factor needs to be considered.

First of all, there must be a certain supply of ZCHF available so that it can be used for transactions. The Frankencoin is backed by collateral in the form of ERC20 tokens, meaning that in order to mint more ZCHF, there needs to be collateral. This is the first requirement for the Frankencoin’s success: The increase of total value locked (TVL) and the increase in circulating supply that comes with it. If there are no Frankencoins, there can’t be a Frankencoin ecosystem either.

The second factor is the use case. In order to fulfil this requirement, there need to be institutions or individuals that are interested in holding or trading the Frankencoin, and/or accepting it as a payment method. A good example of this would be asset management firms that want to balance their portfolio with easily accessible Swiss francs, or online retailers that want to accept a new, attractive payment option. Without proper advertising, none of these parties would even know about the existence of the Frankencoin.

There is a third factor that plays into this mix: The ease of accessing the Frankencoin. Of course, it is possible for anyone to interact with the Frankencoin smart contract. In practice however, people want to visit a website to read about the Frankencoin, borrow it, and even trade it. Only a small number of people would realistically interact with the smart contract directly; the vast majority of users want to interact with the Frankencoin through a website.

It is apparent: Only having a smart contract is not enough.

The Need for the Association

The Frankencoin smart contract cannot succeed on its own. And this is exactly where the association comes in.

The most visible parts of the association are the Frankencoin frontend and the Frankencoin app. The Frankencoin Association created and maintains both the frontend and the app.

Another important part that the association takes care of is the marketing of the Frankencoin. This includes things like the creation of pitching material, the writing and publishing of content about the Frankencoin (such as this article), the creation of posts on Social Media, and keeping the Frankencoin documentation up to date. This documentation contains everything you need to know about the Frankencoin ecosystem and allows you to get a deeper understanding.

Of course, marketing is not only done by simply publishing articles and tweets. Marketing is far more than that. In addition to simple content creation, marketing also includes introducing the Frankencoin to individuals and institutions that would like to accept and/or hold the ZCHF.

All of this requires a lot of work, and that’s what the Frankencoin Association is here for.

You Can Participate!

The Frankencoin Association creates income in the shape of membership fees. These fees are used to fund all activities that the association is part of. Note that the Frankencoin Association doesn’t sell ZCHF nor FPS. But what do the members get in return for their contributions? Secret access to insider knowledge, special deals on ZCHF or discounts on FPS? No, none of those things have ever happened or will ever happen. The Frankencoin is and will always remain transparent.

Being a member of the Frankencoin Association comes with the perk of being able to help guide the ZCHF. Which potential partners should be approached? Which partnerships should be forged, and which shouldn’t? How should the ZCHF ecosystem be expanded? How could the smart contract be enhanced? These are just a few of the questions that the members of the Frankencoin Association are able to discuss.

If this sounds interesting to you, we are currently looking for new members. If you want to work with brilliant minds in the Swiss crypto scene, send us a message and inquire about the membership!

Note: Of course, it is entirely possible to do all of those things independantly, without being part of the association. The Frankencoin belongs to everyone. But if we unite in one association, the chances of success are higher!