Crypto needs its own denomination. Whilst it is natural to compare things in price to the dollar (and this is why most stablecoins aim to be worth $1.00), it makes sense that if crypto is to build a new financial system, it should denominate itself in a currency of its own. Naturally, the dollar is a symbol of traditional, centralised finance. As such, a new currency that doesn’t try to be worth $1.00 is needed: FLOAT.
Much like fiat currencies such as the dollar, euro or pound, FLOAT is a floating currency. It is not pegged to any particular value. As such, just like a country’s currency may become more valuable as it has higher demand (such as through trade, tourism or as a financial safe-haven), a true crypto stablecoin should also be able to float as demand for both it, and crypto, fluctuates.
To achieve a floating value, FLOAT is partly supported by a basket of cryptocurrencies. In v1 of the protocol, the basket will start with just Ethereum. This is because ETH is the most active ecosystem and at the heart of most innovation, underlying development activity and usage in crypto. Over time, more cryptocurrencies will be added to the basket to diversify exposure to one coin.