Question 1

What does IRMA stand for?

Accepted Answer

IRMA stands for Inflation Resistant Medium of Account. It is a new type of stablecoin designed to resist inflation. Unlike other USD-backed stablecoins that inflate with USD, IRMA does not inflate with USD.

Question 2

How does IRMA protect against inflation?

Accepted Answer

IRMA protects against inflation by having a mint price that adjusts with inflation, while the redemption price remains independent. When inflation rises, the mint price increases proportionally, allowing IRMA's exchange rate with USD to rise. The redemption price is determined by the total reserve backing and the total IRMA in circulation, separate from the mint price. This mechanism ensures that IRMA can protect your savings from inflation.

Question 3

How can I mint IRMA?

Accepted Answer

We will be doing an alpha release soon! Keep track of our progress by visiting this site often, or joining our email list.

Question 4

What defines a stablecoin?

Accepted Answer

A stablecoin is a cryptocurrency that maintains a stable price relative to USD. Issuers aim to keep it on par with USD (1 stablecoin = 1 USD). IRMA functions like other USD stablecoins when inflation is below 2%, but its mint price increases with inflation above 2%.

Question 5

What does reserve backing mean?

Accepted Answer

Reserve backing means that when you mint IRMA, the stablecoin you use is stored in a vault and becomes part of IRMA's reserve. For example, if you mint 1,000 IRMAs at 1.0 USDC, you deposit 1,000 USDC with us. This 1,000 USDC is redeemable anytime in exchange for the 1,000 IRMAs. Until you redeem, the 1,000 USDC remains as reserve backing. If USD inflates, the value of your IRMA rises with respect to the USDC you deposited.

Question 6

How does the IRMA redemption price increase?

Accepted Answer

The redemption price of IRMA increases as the total reserve backing grows faster than the total IRMA in circulation. When inflation exceeds 2%, the mint price rises, leading to more stablecoin being deposited as reserve backing per IRMA. This additional stablecoin is stored as reserve backing, not counted as profit. Over time, this allows the redemption price to catch up with the mint price, although this process is slower. In extreme cases of hyperinflation, the redemption price may never fully catch up.