Patent ID: 11861571
Assignee: INFRARED5, INC.
Field: IT methods for management (Electrical engineering)
Classification: CPC G | IPC G

Claim 6:
7. A computer system for stabilizing value of tokens of a digital currency made available through smart contracts on a blockchain, wherein the tokens include reserve tokens for managing price stability of the digital currency and utility tokens, the computer system comprising:
a stabilizer device, comprising at least one computing device programmed with computer program logic to be configured to, in response to transactions including a transfer of utility tokens that affect at least one of a value of utility tokens or an amount of supply of utility tokens, run a stabilization process that maintains a target value for utility tokens;
wherein the smart contracts on the blockchain implementing the tokens include, within logic for functions implementing transfer of utility tokens, logic to invoke the stabilization process such that the stabilization process is run automatically in response to every transfer of utility tokens that affects at least one of the value of the utility tokens or the amount of supply of utility tokens;
wherein the stabilizer device, to run the stabilization process, is configured to:
identify a deflation period, inflation period, or stable period based on at least a current value of utility tokens and a current amount of supply of utility tokens,
determine an amount for a new supply of utility tokens to maintain the target value for the utility tokens based on the identified inflation period, deflation period or stable period, and any amount of reserve tokens to be minted, and
in response to a transaction transferring an amount of utility tokens from a first owner to a second owner:
i. for a deflation period, convert utility tokens to reserve tokens to meet the determined amount for the new supply of utility tokens,
ii. for an inflation period, convert reserve tokens to utility tokens to meet the determined amount for the new supply of utility tokens, and
iii. for a stable period, mint the amount of reserve tokens.