A little-known altcoin project has more than doubled in value overnight after announcing its participation in a European Union digital economics research program.
The spot price of the Ethereum-based Streamr (DATA) token rose 116% on February 12 after it was revealed that the project will be used as part of an EU trial aimed at creating a type of money.
According to the announcement on February 11, the ATARCA Consortium, as part of an initiative trying to address the “economic inefficiency” caused by artificially terminating the supply of digital artifacts; Awarded up to $3.33 million by the European Board.
By making a radical break from one of the economic factors that are said to give Bitcoin (BTC) some of its price; It will try to create an environment that is expensive by sharing rather than “scarcity”. ATARCA claims that it offers an alternative to the mainstream economy with the concept of “competitive goods”, which become more expensive as they are used. ATARCA, led by Professor Pekka Nikander of the Connectivity and Networking Department at Aalto University in Finland, said:
“The current economic system is not suited to the 21st century, where people increasingly trade with a limited medium of exchange. The term ‘anti-competitive goods’ refers to a new theoretical category that is characterized by abundance and, unlike competing or non-competitive goods, becomes more expensive with use.”
ATARCA will participate in the upcoming two-part test phase with Streamr, an end-to-end blockchain live streaming network. Here, it is proposed to create “anti-competitor tokens” that will be tested. Streamr will reportedly be used to test the concept of sharing as a means of payment, using its real-time data sharing network as a sandbox:
“Unlike cryptocurrencies like Bitcoin, anti-competitive tokens cost scarcity; will be based on underlying human connections. Their value reflects the way relevance is built through repeated interactions over time. It benefits all aspects of the processes.”
The first part of the pilot program will take place first in Barcelona using the city’s own digital social currency Real Economy Currency.
Altcoin price rally
Streamr, an open source project founded in 2017, witnessed the price of the local DATA token climb to a three-year high. According to CoinMarketCap information, the altcoin price rose from $0.08 to $0.18 in a short period of time. At the time of writing, it is at the level of $0.14.
