@KaspaDollar’s oracle will power so much more than just $KSD. Think bigger.
saefstroem
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kaspa core dev
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I eagerly await people’s opinion and criticism!
Website update! So many questions and so many unknowns yet we are completely blown away by how well the fundraiser has progressed so far, and we hope that the pace will keep increasing!View quoted post on X
A lot of feedback has been gathered, and the website now describes the proposed idea for how KaspaDollar will function as easy as possible. Most importantly, we would like to introduce our decentralized oracle design which with the help of $KAS miners, will secure the KaspaDollar stablecoin through KIP-21 sequencing commitments.
We hope that other projects will follow along and utilize miner payloads as a means of improving miner economics.
Let's build the first native PoW-backed stablecoin together!
Thank you for this tweet, @KaspaSilver. I am going to address your concerns, piece by piece.
Concern 1 & 2: "Missing whitepaper, and no R&D"
I understand your point about the missing whitepaper. This is still in progress as it needs to be written in a certain way and have the necessary proofs, statements in order to bring the value that a whitepaper does. It is totally acceptable to be wary of donating before you see a concrete spec. The reasoning behind opening the fundraiser before those are finished is primarily for brand awareness, the fundraiser progress so far has exceeded my expectations.
It is not the case that no R&D has been done earlier, in fact I have been working on the stablecoin initiative for the last 6 months already, where primarily focus has been on communicating with centralized issuers. Unfortunately, centralized issuers are resistant to deploying on Kaspa for primarily two reasons:
1. because of the lack of anticipated volume.
2. because the needed infrastructure is missing.
I, of course disagree with this statement as there can be no volume without DeFi, hence it is a chicken and egg problem. The implementation of @KaspaDollar, would therefore not be "just a stablecoin from scratch" but a:
1. fully decentralized stablecoin
2. build the needed infrastructure that centralized issuers need in order to operate
3. bring the first needed volume in order to validate Kaspa's DeFi potential that is needed for issuers to bring their assets.
Therefore, @KaspaDollar is indirectly an effort to bring USDC/USDT onchain.
Concern 3: "Decentralized stablecoins are problematic."
Decentralized stablecoins utilize a decentralized asset as collateral, this means they are backed by whatever the collateral is most usually traded against, which for now is the U.S dollar.
When it comes to regulation the situation is complex, however we can break it down:
1. Looking at EU, MiCA (Regulation (EU) 2023/1114), Recital 22 it is stated that: "where crypto-asset services are provided in a fully decentralised manner without any intermediary, they should not fall within the scope of this Regulation" and "where crypto-assets have no identifiable issuer, they should not fall within the scope of Title II, III or IV".
2. Looking at, US, GENIUS Act (signed July 18 2025), Sec. 2 defines a "payment stablecoin" as a digital asset whose issuer is obligated to convert or redeem it for a fixed amount of monetary value. In our case, @KaspaDollar has no identifiable issuer.
3. The freeze/blacklist requirement you are referring to is Sec. 4(a)(6) of the same act, and it applies to "permitted payment stablecoin issuers", i.e. centralized issuers like USDT and USDC.
4. Freeze and blacklist functions exist because a company holds USD in a bank and is a regulated entity. There is neither a bank account behind @KaspaDollar nor a company behind it. There will be no developer fees and no upgradability. This will also apply to the oracle itself.
Concern 4: "Decentralized stablecoins are hard to list on exchanges"
The current market situation says the contrary:
1. DAI/USDS is listed on Binance, Coinbase, OKX, Bybit, MEXC, Kraken etc. and has no freeze functionality. Now it is true that they have the possibility to enable this, but at its current stage it is still unfreezable yet listed on most major CEX's.
But more importantly, a CEX listing is not the goal for @KaspaDollar and having this expectation, misses the point what it is for.
DAI was not built to be traded on Binance, it existed so that Ethereum DeFi had a stable value of account that lived onchain. Following its creation, everything else was built on top of it.
On Kaspa, we have the same gap today:
1. there is no dollar on L1,
2. no stable pair for a DEX,
3. no stable asset to lend or borrow against,
4. no way to take profit without leaving the chain,
5. no reason for anyone to build any of that.
Every DeFi primitive starts with a stable unit of account, and there is not going to be one from a centralized issuer without having seen some kind of evidence that sufficient volume is to be expected. Therefore, @KaspaDollar is the first one to take on that risk.
So the order that I believe in is not: "get USDT, then DeFi". It is "create a decentralized native stablecoin, build the DeFi, show the volume, and then the issuers come".
Concern 1 & 2: "Missing whitepaper, and no R&D"
I understand your point about the missing whitepaper. This is still in progress as it needs to be written in a certain way and have the necessary proofs, statements in order to bring the value that a whitepaper does. It is totally acceptable to be wary of donating before you see a concrete spec. The reasoning behind opening the fundraiser before those are finished is primarily for brand awareness, the fundraiser progress so far has exceeded my expectations.
It is not the case that no R&D has been done earlier, in fact I have been working on the stablecoin initiative for the last 6 months already, where primarily focus has been on communicating with centralized issuers. Unfortunately, centralized issuers are resistant to deploying on Kaspa for primarily two reasons:
1. because of the lack of anticipated volume.
2. because the needed infrastructure is missing.
I, of course disagree with this statement as there can be no volume without DeFi, hence it is a chicken and egg problem. The implementation of @KaspaDollar, would therefore not be "just a stablecoin from scratch" but a:
1. fully decentralized stablecoin
2. build the needed infrastructure that centralized issuers need in order to operate
3. bring the first needed volume in order to validate Kaspa's DeFi potential that is needed for issuers to bring their assets.
Therefore, @KaspaDollar is indirectly an effort to bring USDC/USDT onchain.
Concern 3: "Decentralized stablecoins are problematic."
Decentralized stablecoins utilize a decentralized asset as collateral, this means they are backed by whatever the collateral is most usually traded against, which for now is the U.S dollar.
When it comes to regulation the situation is complex, however we can break it down:
1. Looking at EU, MiCA (Regulation (EU) 2023/1114), Recital 22 it is stated that: "where crypto-asset services are provided in a fully decentralised manner without any intermediary, they should not fall within the scope of this Regulation" and "where crypto-assets have no identifiable issuer, they should not fall within the scope of Title II, III or IV".
2. Looking at, US, GENIUS Act (signed July 18 2025), Sec. 2 defines a "payment stablecoin" as a digital asset whose issuer is obligated to convert or redeem it for a fixed amount of monetary value. In our case, @KaspaDollar has no identifiable issuer.
3. The freeze/blacklist requirement you are referring to is Sec. 4(a)(6) of the same act, and it applies to "permitted payment stablecoin issuers", i.e. centralized issuers like USDT and USDC.
4. Freeze and blacklist functions exist because a company holds USD in a bank and is a regulated entity. There is neither a bank account behind @KaspaDollar nor a company behind it. There will be no developer fees and no upgradability. This will also apply to the oracle itself.
Concern 4: "Decentralized stablecoins are hard to list on exchanges"
The current market situation says the contrary:
1. DAI/USDS is listed on Binance, Coinbase, OKX, Bybit, MEXC, Kraken etc. and has no freeze functionality. Now it is true that they have the possibility to enable this, but at its current stage it is still unfreezable yet listed on most major CEX's.
But more importantly, a CEX listing is not the goal for @KaspaDollar and having this expectation, misses the point what it is for.
DAI was not built to be traded on Binance, it existed so that Ethereum DeFi had a stable value of account that lived onchain. Following its creation, everything else was built on top of it.
On Kaspa, we have the same gap today:
1. there is no dollar on L1,
2. no stable pair for a DEX,
3. no stable asset to lend or borrow against,
4. no way to take profit without leaving the chain,
5. no reason for anyone to build any of that.
Every DeFi primitive starts with a stable unit of account, and there is not going to be one from a centralized issuer without having seen some kind of evidence that sufficient volume is to be expected. Therefore, @KaspaDollar is the first one to take on that risk.
So the order that I believe in is not: "get USDT, then DeFi". It is "create a decentralized native stablecoin, build the DeFi, show the volume, and then the issuers come".
$KAS I just want to share why I personally have not donated to KaspaDollar yet and hoping I can get some more information.View quoted post on X
First off I think its not good to ask for funding without a whitepaper or much more guidance on how things will work. To me it appears as give us the money and then we will research and figure out how achievable the goals we want.
Secondly, I truly believe we do not have time to be spending our resources on a brand new from scratch stablecoin. To me all efforts should be spent on getting native L1 support for already established USDT and USDC stablecoins.
Third, from what I can tell the goal is to make this stablecoin trustless. This means there is no way to freeze or blacklist addresses. This is a problem. Stablecoins are backed by the dollar and typically require those features in order to prevent money laundering and follow regulation. This means that if development moves forward for this we will not see this come to life without a few years of wait time. The reason for this is because this stablecoin would not be easily listed on popular exchanges. The only way to obtain it will be via DEXs which for Kaspa as far as I am aware we do not have proper DEXs if they do exist they lack accessibility.
These are my thoughts. Please if you have more information surrounding this leave them below.
$KAS miners I have designed something very cool, for you. Soon, block rewards won’t be the only thing you will be mining.
When dealing with funds or onchain finance, the safest code is the one that was never written. Systems need to be kept as simple as humanly possible in order to understand the attack surface.