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A cryptocurrency stablecoin, with the token symbol EOR, whose aim is to incentivise energy efficiency. |
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Enervator is an implementation of Ethereum's ERC777 Token Standard. It inherits from OpenZeppelin's implementation of that standard.
Below describes the processes by which Enervator incentivises energy efficiency.
Total Supply = World Population, so it will grow or decrease according to annual population fluctuations.
EOR = 2017 global average residential electricity price * ( old TPES / current TPES ) / annual global per capita energy use
To incentivise lower energy use, the value of Enervator is to reflect two annual consumption metrics. The first is global per capita energy consumption, which, according to figures from the World Bank, in 2014, was 1922.488 kilograms of oil equivalent, or 22.35853544 MegaWatt hours (MWh).
The second is total primary energy supply (TPES), which according to the International Energy Agency (IEA), in 2016, was 13972 Megatons of oil equivalent (Mtoe), or 162494360000 MWh. Using TPES also has the potential to offer stakeholders incentives for using clean energy, a metric that future iterations of EOR will take into consideration.
Since the basis of the value system of EOR is energy use per capita, it seems prudent to base total supply on world population. According to Worldometer, at 2.34pm GMT on September 2nd 2019, that was 7727623693, or nearly 7.8 billion.
Finally, to make it easy to exchange sovereign currencies for EOR, a sovereign currency price per MWh is needed. Energy prices vary significantly around the world; however, figures from the IEA show that, for 2017, the global average residential electricity price was US$98.16 per MWh.
Total Supply = World Population (re-evaluated annually)
The aim is to incentivise lower energy consumption, not energy price variations, so EOR shall use the 2017 global average residential electricity price, at US$98.16 per MWh, as a constant.
A simple value algorithm would be to derive the value of a single EOR by taking the product of US$98.16 and annual global average per capita energy consumption. For example:
1 EOR = 98.16 * 22.35853544 = US$2194.71
Unfortunately, that simple algorithm rewards inefficiency, since the value of EOR would increase as consumption increases. In a world threatened by climate change, that is problematic. Instead, a simple fix that offers incentives for efficiency is to take the reciprocal of the annual global average per capita energy consumption:
1 EOR = 98.16 * ( 1 / 22.35853544 ) = $4.39
For example, imagine the scenario where consumption increases to 30 MWh:
1 EOR = 98.16 * ( 1 / 30 ) = $3.27
However, if consumption falls to 10 MWh, the value of EOR increases:
1 EOR = 98.16 * ( 1 / 10 ) = $9.82
The value algorithm is not quite complete - to further incentivise lower energy consumption, the price of a single EOR will also reflect the difference between old and current TPES figure. At setup, that would have no effect since new equals current; therefore, there is no difference. However, imagine the second annual TPES figures show that, unfortunately, TPES has increased to 200000000000 MWh:
1 EOR = 98.16 * ( 1 / 22.35853544 ) * ( 162494360000 / 200000000000 ) = 98.16 * ( 162494360000 / 200000000000 ) / 22.35853544 = $3.57
Conversely, imagine that TPES decreases to 100000000000 MWh:
1 EOR = 98.16 * ( 162494360000 / 100000000000 ) / 22.35853544 = $7.13
Hence, with a decrease in TPES, the value of EOR increases, and visa-versa.