Introduction
We believe the largest obstacle to the mass adoption of cryptocurrencies is price volatility. Cryptocurrencies, unlike fiat currencies, do not have a central bank to implement monetary policy focused on stabilizing purchasing power. Thus, changes in demand induce massive price fluctuations. The decentralized model to price discovery has made the majority of existing cryptocurrencies nothing more than stocks or commodities, valued on psychology, traded on unregulated stock markets, and susceptible to manipulation. The lack of price stability has prevented credit and debt markets from forming because volatility incurs a premium. While the rest of the industry focuses on transaction throughput and smart contracts, we focus on a currency whose rules are published and enforced on chain.
In this paper, we introduce Centric Rise, a cryptocurrency whose conversion rate against Centric Swap rises on a published schedule.
Each unit of Centric Rise converts to CNS at a rate that is set in advance and recorded in hourly on-chain entries called Price Blocks. The Centric Foundation sets each month's rate on chain ahead of time, and an immutable formula on the Centric Rise smart contract calculates each hour's rate from it. For this reason, in the near term, Centric can be understood as a transparent, rule-based schedule for the CNR conversion rate.
Centric Rise is a new class of digital currency that does not match with existing coins or stablecoins. It is not a fully free-traded token, and it does not meet the standard definition of a stablecoin, either. CNR's conversion rate against CNS follows a published schedule, but what CNR is worth in dollars depends on the market price of its freely traded ecosystem token, Centric Swap (CNS), which can fall sharply. The rate is recorded in hourly on-chain entries called Price Blocks, and an ecosystem of applications that use Centric Rise as their currency is designed to provide utility. Centric has no reserves and no peg, and neither token is designed to hold a fixed dollar value.
To provide liquidity on the free market in the early stages, Centric Rise has issued a freely traded token known as Centric Swap. Centric Swap is a zero-sum cryptocurrency, created and burnt on-demand to facilitate the liquidity of Centric Rise. Users may obtain Centric Swap by buying it on an exchange, or by converting Centric Rise to Centric Swap on the CNR smart contract.
Centric Rise is designed for individuals, businesses, and governments who want a currency whose conversion rate follows a published, rule-based schedule. The design of Centric Rise is catered to mass adoption, ease of use, and limitless application. The Centric team aims to build partnerships, apps and utilities that increase transaction volume and utility, and to grow market demand through them.
Market
Centric Rise is designed for people who want a currency whose conversion rate follows a published schedule. Early adopters come from all backgrounds and are looking for alternatives to fiat currency. The design of Centric Rise is for mass adoption, ease of use, and multiple applications. The Centric team is creating partnerships, apps and utilities that aim to increase adoption, exchange volume and utility of the token over time, through use of the token on multiple services.
Centric Rise is a cryptocurrency built on an entirely new economic model, designed with two main features. First, its conversion rate against CNS rises hourly on a published schedule. Second, an ecosystem of apps, dApps, and services is architected to provide utility and demand.
How the Centric Protocol Works
Centric sets CNR's conversion rate on a managed schedule instead of leaving it to the market, while CNS trades freely and can be volatile.
Rate schedule
Centric Rise's conversion rate rises hourly on a schedule the Centric team sets in advance, with a monthly rate for each period. At the point of conversion, the protocol applies the scheduled rate exactly. The rate is measured in CNS; the value of CNS in dollars is set by the market.
Exploring the Centric Protocol
In this section, we explore the following topics:
- How the Centric Protocol balances aggregate demand through a two-token system
- How exchange rates are measured
- How conversions change the supply of CNS
Balancing Aggregate Demand via a Two-Token System
The Centric protocol defines two classes of tokens, Centric Rise and Centric Swap. Together, the two tokens balance aggregate demand through a relationship with autonomous feedback mechanisms. The contract applies Centric Rise's scheduled rate, while Centric Swap's supply expands and contracts with conversions. The next section details each token in the protocol.
Network Overview
Centric Swap serves as a medium of exchange, providing transactional compatibility within the existing blockchain ecosystem. It has distinct features:
- Minted in exchange for CNR at CNR's conversion rate, which is measured in CNS
- Supply determined by Centric Rise deposits
- Lets CNR holders convert to CNS at any time
- Obtained on exchanges or by converting CNR
Centric Rise has a fixed maximum supply and a conversion rate that follows a published schedule. It features:
- A monthly rate, set in advance by the Centric team and applied hourly
- Quantizes actions into discrete 'hourly price blocks'
- Price published to immutable price blocks in advance
- Maximum supply of 8 billion tokens: no more can be minted, and burns reduce the supply
- An hourly burn of excess CNR held in quarantine
- Liquid through its relationship with Centric Swap
- Obtained by converting CNS through Centric's on-chain swap
- Inherently fungible, transportable, durable, and divisible
Measuring the Exchange Rate Across the Network
Centric Rise
The Centric protocol operates predictably and independently of other assets. The monthly rate is the primary tool for network monetary policy and sets CNR's hourly rate increases. Calculation methods differ across two project phases. Initially, policy is predetermined and written to the blockchain in advance.
Adoption/Growth Phase
During this phase, economy experts act as an oracle, executing monetary policy:
- Grow the number of users and transaction volume
- Sustain aggregate demand through nominal rate adjustments
- Build trust and predictability
Sustainable Phase
Once Centric Rise's utility is established, the plan is for its base monthly rate to be set algorithmically. Today, the Centric Foundation sets each month's rate on chain ahead of time. The current schedule is on the Metrics page.
Centric Swap
The protocol exchanges CNS for CNR at CNR's conversion rate. The contract expresses that rate in dollars but counts one CNS as one dollar, so in practice the rate is measured in CNS, not at CNS's market price. CNS has no fixed dollar value: its market price is set by buyers and sellers and can move sharply. Centric Swap's market capitalization reflects Centric's aggregate demand.
How Conversions Change the Supply of CNS
Anyone holding CNR or CNS can convert one into the other at any time at CNR's scheduled rate. Converting CNR to CNS mints new CNS and places the CNR in quarantine; converting CNS to CNR burns the CNS and releases CNR from quarantine. The supply of CNS therefore expands and contracts with conversions. The rate does not depend on CNS's market price, and the protocol does not set that price.
How Centric Incentivizes Adoption
Centric Rise's conversion rate rises on the published schedule; the current monthly rate is on the Metrics page. Each hour the protocol burns CNR held in quarantine to keep its accounts in balance. The burn does not change the CNR in any holder's wallet or set the market price of CNS.
Utility for Centric: dApps, Applications, and Services
Centric plans applications and services designed to provide utility for the Centric Rise token. The Centric Wallet is live. The other projects below are plans with no set dates; the Roadmap lists what is upcoming.
Centric Wallet
The Centric Wallet is a self-custody web app for holding Centric Rise & Swap, allowing members to send, receive, and convert.
Crypto Donation
A planned partnership with Crypto Donations, a non-profit organization that uses cryptocurrency for charitable giving.
CenPay
A point of sale and business wallet allowing merchants & service providers to easily accept Centric Rise.
Centric Centres
A concept for local centres. Centric has not yet published details.
Centric Developer Hub
Centric plans a public API and tools for 3rd party app developers, and a Developer Hub with documentation and support for working with Centric.
Technical Notes
The Centric Protocol defines two classes of tokens, Centric Rise and Centric Swap. These tokens work together to balance aggregate demand through autonomous feedback mechanisms.
Centric Rise (CNR)
Centric Rise (CNR) is the holding token of the Centric protocol. The protocol's smart contract sets a conversion rate for CNR, recorded in hourly on-chain entries called Price Blocks, and applies it at the point of exchange. The contract expresses the rate in dollars but counts one CNS as one dollar, so in practice the rate is measured in CNS, not at CNS's market price. The Centric Rise token is governed by the Centric Rise smart contract.
Centric Swap (CNS)
Centric Swap (CNS) is traded freely on cryptocurrency exchanges at a price dictated by the market. It provides liquidity to the Centric payment network through transactional compatibility with existing currency ecosystems. Centric Swap is minted and burnt on demand in exchange for Centric Rise. The Centric Swap token is also governed by the Centric Rise smart contract.
Protocol Overview
The Centric Protocol is governed by the Centric Rise smart contract and cannot be updated once deployed. The Centric team still triggers each Price Block, and the Centric Foundation sets the monthly rate the formula uses.
Tokens
CNR and CNS are Solana (SPL) standard tokens implemented on the Solana blockchain.
| Symbol | Name | Supply | Decimals |
|---|---|---|---|
| CNR | Centric Rise | 8,000,000,000 (8 billion) minted at launch; burns reduce it | 8 |
| CNS | Centric Swap | No fixed supply | 8 |
Protocol Inception
At deployment of the Centric Protocol:
- The initial price of CNR is set by the Centric foundation on the Centric Rise smart contract.
- 8 billion CNR is minted (maximum supply) and circulated to existing network members by the Centric team.
- 0 CNS is minted.
Centric Rise Price
The price of CNR is its conversion rate against CNS. It is provided by the Centric Rise smart contract and read from immutable 'Price Blocks' stored on chain that are published in advance. The contract records the price in dollars while counting one CNS as one dollar, so it is not a market price.
Price Blocks
Price Blocks store the current, future, and past prices of CNR. Each Price Block is referenced by a Block Number that corresponds to an hour in time denoted in hours since Unix epoch. Each Price Block contains:
- CNR price, which the contract records in dollars while counting one CNS as one dollar
- Monthly price growth rate expressed as a percentage
- CNR price change from the previous Price Block expressed as a percentage
- Created hour denoted in hours since Unix epoch
The immutable protocol dictates:
- A Price Block cannot be altered or destroyed once created.
- Block Numbers are unique i.e. only a single Price Block can exist per hour in time.
Price Block Creation
The creation of a Price Block is triggered by the Centric team and executed by an immutable formula stored on the Centric Rise smart contract. The immutable formula dictates:
- Only a single Price Block can be created at a time.
- The creation of a Price Block cannot be skipped.
- The CNR price set in a new Price Block is increased programmatically using the formula.
vn = vl * (1+r)^(1/t)
vn is the CNR price of the new Price Block
vl is the CNR price of the previous Price Block
r is the Future Growth Rate
t is the number of hours in the month the Price Block references
Future Growth Rate
The Future Growth Rate is the monthly rate, expressed as a percentage, that the formula uses to calculate new Price Blocks. It is supplied when each Price Block is created and stored in that block. The Future Growth Rate is set by the Centric Foundation.
Token Conversion
Any token holder can exchange CNR for CNS and vice-versa. The immutable protocol dictates:
- CNS is minted in exchange for CNR at the CNR price of the current Price Block: CNS received = CNR amount × CNR price.
- CNS is burnt in exchange for CNR at the same price: CNR received = CNS amount ÷ CNR price.
Centric Rise Quarantine
When CNR is exchanged for CNS, it is held in quarantine on the Centric Rise smart contract. Conversely, when CNS is exchanged for CNR, CNR is released from quarantine.
Network Capitalization
The immutable protocol dictates:
- The network capitalization of quarantined CNR (CNR price * CNR quarantined) must equal the network capitalization of CNS ($1 * CNS supply). The contract counts one CNS as one dollar, so in practice both sides are measured in CNS, not at CNS's market price.
- Every hour the price of CNR increases to its next predetermined price, resulting in the network capitalization of CNR held in quarantine to increase. This creates a mismatch breaking the rules of the protocol. Subsequently, CNR is burnt from the smart contract equal to the mismatch to balance the network.
Protocol Components
The Centric protocol runs as a single program on the Solana blockchain. CNR and CNS are SPL tokens. The program is the mint authority for CNS, and the mint authority for CNR has been revoked.
Addresses
| Item | Address |
|---|---|
| Program | 8VWm29HWNAftJJnGpL7rqVcyShbB1TSZmweaMec7V7no |
| CNR token | 5STJWBrKaLdFX649gGN1yq8CNyPVmZPVZi5jNuXSSVgC |
| CNS token | 2jUSPvEuxSxJ6nGpUHyXVAcNxyhugPC1iBeNjhTXzAUy |
Accounts
The program keeps the state of the network in accounts on chain. These accounts can be read by any user at any time.
| Account | Description |
|---|---|
ProgramState | The owner and admins, the amount of CNR in quarantine, the Block Number of the last Price Block, the hour the network was last balanced, whether the rate factors are locked, the total amount of CNR burnt, and the CNR and CNS token addresses |
PriceBlock | One per hour. The Block Number, CNR price, monthly growth rate, change from the previous Price Block, and created hour |
GrowthRateToPriceFactors | One per monthly rate. The hourly factors the formula uses for months of 28, 29, 30 and 31 days |
| Quarantine account | Holds the CNR in quarantine |
Public Instructions
Instructions that can be invoked by any user and result in a state-change to the network.
| Instruction | Description |
|---|---|
convert_to_rise | Converts the sender's CNS to CNR. Burns CNS and releases CNR from quarantine |
convert_to_swap | Converts the sender's CNR to CNS. Quarantines CNR and mints CNS |
do_balance | Enforces the network capitalization protocol. Burns excess CNR from quarantine, at most once per hour |
Admin Instructions
Instructions that can only be invoked by the program's owner or its admins and result in a state-change to the network.
| Instruction | Who | Description |
|---|---|---|
do_create_block | Admin | Creates the next Price Block, for the hour after the previous Price Block, using a registered monthly rate |
set_price_factors | Admin | Registers the hourly factors for a monthly rate. Not possible once the factors are locked |
lock_price_factors | Admin | Locks the registered factors. Required before the first Price Block |
burn_lost_tokens | Admin | Burns CNR sent to the quarantine account by mistake |
appoint_admin, dismiss_admin | Owner | Adds or removes an admin |
transfer_ownership, claim_ownership | Owner, new owner | Hands the program's ownership to a new owner, who must claim it |
revoke_freeze_authority | Owner | Permanently removes the freeze authority from the CNR and CNS tokens |
revoke_mint_authority | Owner | Permanently removes the mint authority from the CNR token |
Events
A description of events recorded by the protocol. Events are a convenient way to record historical state-changes to the network.
| Event | Description |
|---|---|
ConvertToRiseEvent | Emitted when a user converts CNS to CNR. Records the user address, CNS amount exchanged and CNR amount received |
SwapBurned | Emitted when a user converts CNS to CNR. Records the amount of CNS burnt |
ConvertToSwapEvent | Emitted when a user converts CNR to CNS. Records the user address, CNR amount exchanged and CNS amount issued |
SwapMinted | Emitted when a user converts CNR to CNS. Records the amount of CNS created |
DoBalanceEvent | Emitted when the network capitalization protocol is enforced. Records the hour and the amount of CNR burnt from quarantine |
BlockCreated | Emitted when a new Price Block is created. Records the Block Number and the Price Block data |
PriceFactorsSet, PriceFactorsLocked | Emitted when the factors for a monthly rate are registered, and when the factors are locked |
BurnLostTokensEvent | Emitted when CNR sent by mistake is burnt. Records the amount |
AdminAppointed, AdminDismissed | Emitted when an admin is added or removed |
OwnershipTransferInitiated, OwnershipTransferred | Emitted when a transfer of ownership starts and when it completes |
FreezeAuthorityRevoked, MintAuthorityRevoked | Emitted when the freeze authority or the CNR mint authority is removed |
Conclusion
Imagine that Bitcoin starts competing with the USD in network utility. You would get paid in Bitcoin but pay your mortgage in USD, or perhaps vice versa. This just doesn’t make sense given Bitcoin’s inherent volatility.
In this paper, we introduced Centric Rise and Centric Swap, a dual-token framework in which CNR's conversion rate against CNS follows a published schedule while CNS trades freely at a market price that can move sharply. We believe that a currency whose rules are published and enforced on chain can help people move from holding as little cryptocurrency as possible to using it in everyday transactions. We believe this contribution will trigger a new adoption cycle for cryptocurrencies, helping them transition into functional currencies.
Disclaimer
This Document is not a prospectus and does not constitute nor implies a prospectus of any sort. No wording contained within this document should be construed as a solicitation for investment. Accordingly, this whitepaper does not pertain in any way to an offering of securities in any jurisdiction worldwide whatsoever.
Rather, this whitepaper constitutes a technical description of the functionality of the Centric ecosystem and the creation, development, and deployment of the Centric Rise token, Centric Swap token and Centric ecosystem.
Before you buy CNS or convert it to CNR, seek independent financial advice.