What is not a method used to ensure price stability of stable coins?

Question: What is not a method used to ensure price stability of stable coins?

Certainly! When it comes to ensuring price stability of stable coins, there are several methods employed. However, one method that is not used to ensure price stability of stable coins is the voting method. Stablecoins are cryptocurrencies whose value is pegged to the value of another asset, typically held up as a strain of cryptoasset that minimizes volatility. Most stablecoins are collateralized with 'safe' backing assets like cash or highly liquid assets such as money market funds or commercial paper. However, some algorithmic stablecoins maintain their peg through algorithms that adjust the coin's supply based on changes in demand. These algorithmic coins have been at the center of controversy following crashes like that of US Terra (and associated cryptocurrency Luna USD) in May 2024, where an estimated $42 billion of investment was lost in one week. The total market capitalization for stablecoins continues to rise and is now estimated to have reached over $180 billion. Governments and regulators are actively addressing systemic risks and regulatory gaps while still harnessing the potential benefits of this innovative technology.

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